The presidential address on Sunday has, however, put to rest their argument that there is little or no progress in the oil and gas sector.
The president, in his address did not hide his commendation on the effort made towards revamping the nation's oil sector since inception of his administration. He affirmed that the nation's once declining oil and gas industry was under his administration witnessing a resurgence. This is particularly pleasing because it bodes well for the national economy and ultimately Nigeria's foreign exchange crisis, with the gradual inflow of more dollars that would take the pressure off the naira that has continued to erode in value.
President Bola Tinubu early Sunday morning addressed Nigerians in his effort to stop the nationwide protest that has since frustrated economic activities across the nation.
Prior to his address, the oil and gas sector had been in the centre of political and economic discourse following different controversies, especially as it concerns the Dangote Refinery.
Apart from the refinery saga, some had made biased comments against the progress of the sector and had particularly taken on NNPCL over recent developments in the sector.
While their arguments may appear to be the expression of their rights to freedom of expression and free press, it is interesting to note that some of those comments were either driven by ignorance or blinded by sentiments.
The presidential address on Sunday has, however, put to rest their argument that there is little or no progress in the oil and gas sector.
The president, in his address did not hide his commendation on the effort made towards revamping the nation's oil sector since inception of his administration. He affirmed that the nation's once declining oil and gas industry was under his administration witnessing a resurgence. This is particularly pleasing because it bodes well for the national economy and ultimately Nigeria's foreign exchange crisis, with the gradual inflow of more dollars that would take the pressure off the naira that has continued to erode in value.
He said, "Our once-declining oil and gas industry is experiencing a resurgence on the back of the reforms I announced in May 2024 to address the gaps in the Petroleum Industry Act. Last month, we increased our oil production to 1.61 million barrels per day, and our gas assets are receiving the attention they deserve. Investors are coming back, and we have already seen two Foreign Direct Investments signed of over half a billion dollars since then."
On the contribution of the sector to the overall progress of the nation's economy, the president expressed optimism that the CNG initiative would reduce transportation costs by approximately 60 per cent and help to curb inflation.
He said, "Fellow Nigerians, we are a country blessed with both oil and gas resources, but we met a country that had been dependent solely on oil-based petrol, neglecting its gas resources to power the economy. We were also using our hard-earned foreign exchange to pay for, and subsidise its use. To address this, we immediately launched our Compressed Natural Gas Initiative (CNG) to power our transportation economy and bring costs down. This will save over two trillion naira a month, being used to import PMS and AGO and free up our resources for more investment in healthcare and education."
The president in the speech also disclosed the plan to distribute a million kits of extremely low or no cost to commercial vehicles that transport people and goods and who currently consume 80 per cent of the imported PMS and AGO.
The above further explains the invaluable role of the oil sector and how it is undoubtedly linked to the overall economic revival of the country. Obviously, leadership of the oil and gas sector is working in tune with Mr President's renewed hope agenda, keeping the sector's operation connected to the growth of the transportation sector.
According to the president, "We have started the distribution of conversion kits and setting up of conversion centres across the country in conjunction with the private sector. We believe that this CNG initiative will reduce transportation costs by approximately 60 per cent and help to curb inflation."
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Like in other sectors where a lot of efforts are being made quietly, a lot has happened in the oil and gas sector and it is only reasonable to give the sector a little time before these efforts are transmitted to what Nigerians can feel and touch.
Even though, President Tinubu's economic policy does not depend solely on gas and oil considering its diversification into other sectors of the economy including agriculture, it still remained visible in his address that the oil and gas sector has contributed immensely to the economy in his short stay in office.
With his Sunday's speech, naysayers would have ordinarily realised that in the long run, the oil and gas sector can take Nigeria to its place among comity of nations.
Abah Ali wrote from Abuja.
