• About Us
    • Àtẹ́lẹwọ́ Podcast
  • Contact
  • Cookie Policy
  • Disclaimer
  • Privacy Policy
  • Sitemap
Freelanews
Advertisement
  • Home
  • News
    • Crime
  • Business
  • Brands
  • Banking
  • Opinion
  • Interview
  • Entertainment
  • Podcast
    • Àtẹ́lẹwọ́
  • Sports
  • Events
No Result
View All Result
  • Home
  • News
    • Crime
  • Business
  • Brands
  • Banking
  • Opinion
  • Interview
  • Entertainment
  • Podcast
    • Àtẹ́lẹwọ́
  • Sports
  • Events
No Result
View All Result
Freelanews
No Result
View All Result
Home Business & Finance Oil & Gas

Growth in oil sector GDP contribution shows NNPC strategies working

Freelanews by Freelanews
August 29, 2024
in Oil & Gas
0
NNPCL's effective crude oil production strategies
Total
0
Shares
Share 0
Tweet 0
Share 0
Share 0
Share 0

The strategies adopted by Nigeria’s wealthiest and most profitable company, the Nigerian National Petroleum Company Ltd (NNPCL) to ramp up crude oil production has again proven to be effective after a surprise 3.19 per cent growth in Nigeria’s Gross Domestic Product (GDP) which defied expert projections.

The GDP figures released by the National Bureau of Statistics (NBS) showed that the Crude Petroleum and Natural Gas (oil sector) was the fifth largest contributor to the GDP in the second quarter of 2024, accounting for 5.70 per cent of total GDP which was measured at 3.19 per cent.

The oil sector is a crucial part of the Nigerian economy and it is evident that the economy driven by growth in the oil sector and service industry is returning to the good old days when Nigeria’s GDP grew sustainably.

Since 2020, when Nigeria’s economy has slipped into recession, the oil sector has been struggling with negative growths of -8.89 per cent in 2020, -8.30 per cent in 2021 and -19.22 per cent in 2022.

But the rate of decline decelerated drastically in 2023 to -2.22 per cent in 2023 full year which signalled great relief for the economy and the country is expected to experience a full year growth in the oil sector for the first time since 2019 when the sector recorded 4.59 per cent growth.

Growth in the oil sector has a huge implication for the Nigerian GDP because the economy is an oil economy. A clear instance is that in 2020, when the sector fell -8.89 per cent, GDP also fell -1.79 per cent.

The game has changed in 2024 as efforts by the NNPC led by the Group Chief Executive Officer, Mele Kyari, to increase oil production is translating to growth in the sector and, by extension an improved GDP performance.

In the second quarter of this year, NBS measured average oil production at 1.4 million barrels per day compared to 1.22mbpd production in the corresponding period of 2023.

According to the NBS, the real growth of the oil sector in Q2 2024 was 10.15 per cent annualised, indicating an increase of 23.58 per cent points relative to the rate recorded in the corresponding quarter of 2023 where negative growth of -13.43 per cent was recorded.

This drove the sector to contribute 5.70 per cent to the total real GDP in the second quarter of 2024 which is a rise from the figure recorded in the corresponding period of 2023 when the sector accounted for 5.34 per cent of GDP.

The NBS emphatically said, “The nation in the second quarter of 2024 recorded an average daily oil production of 1.41 million barrels per day higher than the daily average production of 1.22 mbpd recorded in the same quarter of 2023 by 0.19 mbpd.”

The Petroleum Industry Act (PIA) of 2021 empowers the NNPC to ensure energy security for Nigeria through increased crude oil output among others, and this has huge implications for the economy.

Nigeria’s journey towards energy security faced great obstacles when crude oil output plummeted to 900,000 barrels per day in late 2022 due to theft, pipeline vandalism, and inadequate metering.

Consequently, the oil sector equally witnessed -19.22 percent negative growth in 2022 while the GDP growth fell to 3.10 percent compared to 3.40 percent in 2021. This showed a direct correlation between the performance of the oil sector and the GDP.

To rescue the economy which is largely dependent on oil, Kyari-led NNPC embarked on a massive campaign that united the security agencies, the NNPCL, Nigerian Upstream Petroleum Regulatory Commission and host communities to fight oil theft in the oil-rich Niger Delta.

The NNPC Ltd also awarded a pipeline surveillance contract to Tantita Security Services, which has led to the arrest of several vessels stealing Nigerian crude.

In July 2023, Tantita Security Services working in collaboration with NNPC discovered over 60 illegal connections to the trans-Escravos, trans-Forcados, and other major trunk lines by oil bunkDeltaBayelsa states.

In January 2024, the fight led to the interception of MT Kali, an illegal crude oil vessel loaded with thousands of metric tonnes of crude oil. About 20 crew members, including community collaborators, were arrested.

Another success was achieved in June 2024 as the NNPC uncovered an additional 165 illegal refineries in various locations across the Niger Delta, while 65 illegal connections were discovered and disconnected in Bayelsa and Rivers States.

In May, NNPC uncovered 122 illegal refineries at Tomble II, III, IV, Umuajuloke, Rivers State as well as Oporomor III, Eduwini, and Ajatiton in Bayelsa State, all in the Niger Delta region.

Aside from investments in oil, the NNPC has also shown commitment by investing in critical midstream gas infrastructure such as the Obiafu-Obrikom-Oben (OB3) and the Ajaokuta-Kaduna-Kano gas pipelines to boost domestic gas production and supply for power generation, industrial development and economic prosperity of the country.

Without a doubt, NNPC’s effort is helping the Nigerian government shake up the economic pressure on the government and different sectors of the economy.

As of May 2024, crude oil production rose to 1.7mbpd, according to Kyari who linked the rise in oil output to the firm’s fight against crude oil theft and vandalism as well as massive investment in the sector.

Financial analysts at United Capital Research said that due to improved crude production, net exports are expected to be the primary growth drivers, with rising oil export volumes due to improved security in the Niger Delta.

“We align with the International Monetary Fund’s (IMF) projection that Nigeria’s real GDP will increase modestly to 3.1 percent in 2024. In the oil sector, the Nigerian economy is set to benefit from favorable developments, offering positive momentum in 2024,” the firm said in a recent report.

Total
0
Shares
Share 0
Tweet 0
Share 0
Share 0
Share 0
freelanews
Freelanews

Freelanews is a potpourri of news, entertainment, business, events and photos. This is no fake news.


Discover more from Freelanews

Subscribe to get the latest posts sent to your email.

Related Posts

Backbone Infrastructure launches
News

Backbone Infrastructure launches $15bn Ondo refinery, free trade zone

by Peculiar Adirika
July 10, 2025
Cooking gas
Business

Cooking gas prices stay high despite strike suspension

by David Okere
October 6, 2025
L-R: Managing Director, Savannah, Nigeria, Pade Durotoye; Honourable Minister of State, Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo; Head of Stakeholder Relations and Regional Manager, South East, Savannah, Nigeria, Nkoyo Etuk, and Operations Superintendent, Savannah, Nigeria, Chukwudoziem Umunna, during the visit of the Honourable Minister of State, Petroleum Resources (Gas) to Savannah’s gas processing facility in Uquo, Akwa Ibom State on Monday, October 7.
Oil & Gas

Federal govt commends Savannah Energy for boosting Nigeria’s gas supply

by Rtn. Victor Ojelabi
October 10, 2024
Dangote Refinery
Business

Dangote Refinery faces backlash over fuel price row

by David Okere
October 6, 2025
FTIzuRiRdgmktXDr
Business

We have 1.2bn litres of fuel, enough to last for 35 days – NNPC

by Quadri Olaitan
March 6, 2023

Discussion about this post

ADVERTISEMENT

Recent News

Rotary Club cataract surgery

Rotary Club cataract surgery transforms 30,000 lives

October 8, 2025
Ikechukwu N arrest

Ikechukwu N arrest shocks Argentina after INTERPOL raid

October 8, 2025
CBN monetary stability

CBN assures Nigerians of monetary stability progress

October 8, 2025
Uche Nnaji resignation

BREAKING! Tinubu’s Minister, Uche Nnaji resigns over certificate forgery allegations

October 7, 2025

Search

  • Trending
  • Comments
  • Latest
Political persecution in Ogun State

Political persecution in Ogun State: Abiodun moves against Otunba Gbenga Daniel with demolition threats again

August 9, 2025
Abdul-Muiz Olanrewaju Animashaun

Abdul-Muiz Olanrewaju Animashaun remembered with love

September 14, 2025
Taylor Swift deepfake scandal

Taylor Swift faces deepfake scandal as Swifties call for stricter regulation

January 25, 2024
April Wind Couture

April Wind Couture thrives in Nigeria’s tough economy with bold Ankara vision

September 12, 2025
amoke

‘Meals by Amoke’ We serve traditional dishes in a modern way, Bukoye Fasola reveals

0
Image 2024 03 26 at 120645 AM jpeg

Charles Inojie, Ali Nuhu call on communities to #MakeWeHalla against domestic violence

0
Meran Primary Health Centre

Lagos father shares heartbreaking experience at Meran Primary Health Centre (Photos)

0
fls2

‘Disarticulated system’ Gov’t confused about Nigerian education, expert laments

0
Rotary Club cataract surgery

Rotary Club cataract surgery transforms 30,000 lives

October 8, 2025
Ikechukwu N arrest

Ikechukwu N arrest shocks Argentina after INTERPOL raid

October 8, 2025
CBN monetary stability

CBN assures Nigerians of monetary stability progress

October 8, 2025
Uche Nnaji resignation

BREAKING! Tinubu’s Minister, Uche Nnaji resigns over certificate forgery allegations

October 7, 2025
October 2025
MTWTFSS
 12345
6789101112
13141516171819
20212223242526
2728293031 
« Sep    
Freelanews

Freelanews is a Nigerian digital news platform that delivers timely, credible, and engaging stories across politics, business, entertainment, lifestyle, and the creative industry, with a strong focus on promoting innovation, integrity, and inclusivity in storytelling.

Follow Us

  • Facebook
  • TikTok
  • YouTube
  • Instagram

Editor’s Pick

  • OGD vs DA
    OGD vs DA: The real story never told
    • August 22, 2025
  • Toyota Sienna harassment
    Why is Lagos State govt harassing Toyota Sienna users?
    • August 19, 2025
  • Otunba Gbenga Daniel
    Who really is Otunba Gbenga Daniel?
    • August 18, 2025

Hot!

Rotary Club cataract surgery

Rotary Club cataract surgery transforms 30,000 lives

October 8, 2025
Ikechukwu N arrest

Ikechukwu N arrest shocks Argentina after INTERPOL raid

October 8, 2025
No Result
View All Result
  • About Us
  • Contact
  • Advertisement
  • Sitemap

© 2025 Freelanews | by Iretura.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

Total
0
Share
0
0
0
0
0
0
No Result
View All Result
  • Home
  • News
    • Crime
  • Business
  • Brands
  • Banking
  • Opinion
  • Interview
  • Entertainment
  • Podcast
    • Àtẹ́lẹwọ́
  • Sports
  • Events

© 2025 Freelanews | by Iretura.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.

Discover more from Freelanews

Subscribe now to keep reading and get access to the full archive.

Continue reading