The Ministry of Petroleum Resources released a report tagged “7 Big Wins- Short and Medium Term Priorities to grow Nigeria’s Oil & Gas Industry 2015- 2019” which focuses on improving transparency, efficiency, investment and security in the oil & gas sector. The report also reviews developments in the sector between November 2015 and August 2016 while outlining the short-medium term plans of the Ministry of Petroleum Resources to reposition the industry, ramp up production, reduce costs, foster efficiency and attract investments across the oil & gas value chain.
The 2017-2019 MTEF paper released earlier in August - which included the half year performance review of 2016 fiscal operation of the FGN - first revealed the extent of the pressure on government finances; with FGN revenue in the period evidently short of projections made in the 2016 budget by a significant margin (as much as 50.0%) and as a result, a host of capital and recurrent government obligations remain unfulfilled.
India and Nigeria continue to share a thriving relationship in the Oil & Gas space as India remains one of the top importers of Nigeria’s crude. According to Nigeria’s Ministry of Petroleum Resources, India imported circa 23.7MMT (169.2m barrels) between 2015 and 2016, accounting for about 12.0% of the country’s total import. Most recent annual export data from the NNPC also ranked India as the top export destination of Nigerian crude, with 17.6% of total crude exports sold to India in 2014.
Let me begin with two clarifications. Aso Villa is not my home, I am just passing through. Even this world is nobody's home, we are just birds of passage. So, let nobody turn up his nose in derision, and say; "he's writing like the landlord of Aso Villa, defending a place where's he's just a tenant." Yes, nobody is landlord in the Villa, not even rational presidents. They can only live there for maximum of eight years, if Nigerians so decide. And for me, my treasures are laid up somewhere beyond the blue.
The 2016 fiscal year has been largely synonymous with a sharp slowdown in economic activities largely as a result of lower oil earnings which constrained fiscal revenue and foreign exchange supply, as well as underwhelming policy responses and a brooding sub-national fiscal crisis which peaked in H1:2016.
The lingering oversupply in the crude oil market which led to a more than 50.0% plunge in global crude oil prices (from over US$100/b in July 2014 to less than US$50/b in 2016) and worsened fiscal and external sector profiles of major oil exporters finally forced some actions from members of the Organization of Petroleum Exporting Countries (OPEC) this week.
Today – 1st October is a day of celebration for us Nigerians. On this day, 56 years ago our people achieved the most important of all human desires – freedom and independence. We should all therefore give thanks and pray for our founding fathers without whose efforts and toil we would not reap the bounties of today.
The Monetary Policy Committee (MPC) held its 5th meeting for the year on the 19th and 20th of September and the conclusions from the meeting were broadly in line with earlier projections from our Pre MPC Note - “Competing Objectives Call for a Balancing Act” - in which we opined that the MPC will “maintain status quo whilst reinstating the need to fully implement the currency market reforms to regain credibility and push for fiscal-monetary policy coordination to implement structural reforms”.