A destroyed refinery By Favour Ifeoluwa & Akinola Ajibade The Nigerian National Petroleum Company Limited( NNPCL) says it has destroyed 134 illegal refineries in the last few weeks. Also, the company said 63 illegal pipeline connections were uncovered during the the weeks . The corporation, In a visual report, stated that at about 2 am on Sunday, a joint team of security agents discovered a large wooden boat illicitly loading stolen crude oil from Barge AGS01 within the OML 18 operating area, noted intelligence report a large wooden wooden boat was caught receiving crude oil from the barge. According to the state-owned oil firm, while the barge was towed away with a tugboat in custody, five speedboats used in towing the large wooden boat to the illegal loading site were also detained and the particulars of the tugboats and barge used for the operation were reportedly seized for further investigation. It further said that two large boats, which involve
According to the global financial institution, the Federal Government had spend a sizeable chunk of its revenue on debt servicing, thereby leaving smaller proportion for other projects, including payment of subsidies.
It said that Nigeria was able to push the debt service ratio from 83.2 per cent in 2021 to 96.3per cent in 2022.
According to World Bank's Report on economic growth in both developed and developing economies, Nigeria’s fiscal position deteriorated in 2022, leaving the cost of the petrol subsidy to increase from 0.7 percent to 2.3 percent of gross domestic product (GDP).
“This has kept the public debt stock at over 38 percent of GDP and pushed the debt service to revenue ratio from 83.2 percent in 2021 to 96.3 percent in 2022,” the report said.
“The fiscal deficit was estimated at 5.0 percent of GDP in 2022, breaching the stipulated limit for a federal fiscal deficit of 3 percent.”
Oil price booms have previously supported the country’s economy, but this has changed since 2021.
The cause for this, according to the World Bank, was macroeconomic stability weakening amidst declining oil production, costly fuel subsidies, exchange rate distortions, and monetisation of the fiscal deficit.
“In 2022, oil revenues, the fiscal deficit outturn, FX reserves, and economic
growth decoupled from the cycle of higher global oil prices. GDP growth decelerated from 3.6 percent in 2021 to 3.3 percent in 2022,” the report said.
“Growth was driven by manufacturing, construction, and most services. In contrast, the oil sector shrank by 19.2 percent. From the demand side, growth was driven by private consumption and investment.”
It also revealed that the deteriorating economic environment was leaving millions of Nigerians in poverty, resulting in risks tilting to the downside, given the lack of macro-fiscal reforms, the naira demonetisation, and an uncertain external outlook.
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