The Central Bank of Nigeria (CBN) on Thursday said the country’s earning from oil exports is expected to shrink in 2024.


CBN governor, Olayemi Cardoso, said this was due to the oil production limit, which is pegged at 1.78 million barrels per day in the 2024 budget assumption.


Cardoso stated this in his presentation at an interactive session with the National Assembly joint committee on Banking, Insurance and other Financial Institutions at the National Assembly, Abuja.

He said the approved quota for Nigeria by the Organisation of Petroleum Exporting Countries (OPEC) was 1.8 million barrels per day but the country’s production has been below the threshold.


Nigeria’s earnings from oil exports to shrink in 2024 — CBN

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“We expect less revenue from oil exports due to the production limit of 1.78 Mbps in 2024,” Cardoso told the lawmakers from both chambers.

In the 2023 budget, the oil production benchmark was pegged at 1.69 million bpd but the apex bank governor said Nigeria’s highest level of production was about 1.35 mbpd in the third quarter of 2023.



He blamed the underperformance of the oil production target on crude oil theft and pipeline vandalisation, production shut-ins and divestments by major oil companies.

Cardoso, however, said the outlook for the domestic economy in Nigeria for 2024 was positive as both the inflation and exchange rates would withstand fluctuating pressures and stabilise.

“The outlook for the domestic economy remains positive and is expected to maintain a positive trajectory for 2024. Inflation pressures may persist in the short term but are expected to decline in 2024. Exchange rate pressures are also expected to reduce significantly with the smooth functioning of the foreign exchange market,” he said.

He said the unification of the exchange rate windows in June 2023 has ushered in a new approach to the management of the exchange rate, aimed at reducing arbitrage, rent-seeking behaviour and speculation in the market.

“The policy aims at creating a market where the demand and supply of foreign exchange determines the exchange rate.

“The premium has narrowed and our focus on increasing the autonomous FX supply would lead to more stability and further narrowing of the premium.


“Total Trade in the third quarter of 2023 stood at N18.804.68billion. Exports were valued at N10.346.60 billion while total imports stood at N8.457.68 billion. This represents a positive trade balance, which would lead to an increase of the external reserves,” he said.

https://dailytrust.com/nigerias-earnings-from-oil-exports-to-shrink-in-2024-cbn/

Congratulations! CBN is now a prophet

When the loooting is much, shrinking is bound to take place!

Agbado youths hope you are getting ready?!

The continuous free fall of the naira should be a serious concern for all well meaning Nigerians.I have always insisted that the true value of the Naira should probably hover around 800 to 1000 naira.
The last Government did a lot of abracadabra with the Economy and what they did was to simply kick the can of worms down the road,now the chicken has come home to roost
So,what is the immediate solution to our currency problems:

1) Reduce the importation of petroleum products
This Government needs to quickly find a way to commence the local refining of petroleum products using all available resources and Refineries in Nigeria
If Nigeria has to earn less forex from crude oil sales but increase the local refining of crude oil,we might have to take this very narrow path to stabilize our naira

2) Sell off at least two of our Refineries
You might ask,how does selling Refineries stabilise our foreign exchange
Very simple, Government is spending a lot of money doing turning around maintenance on this refineries and Depots located in Nigeria
This TAM are usually costed in Dollars and they seem to never end,by selling major stakes in this refineries, Government will be able to conserve the foreign exchange that would have been wasted on this projects
If my figured serve me right,Nigeria has spent close to 12 billion dollars over the last fifteen years on this refineries and they are yet to produce a single liter of oil

3) Open up the NNPCL
That organization is the most opaque institution in Nigeria as at today,nobody has a clue how much they make everyday,where the money goes and what is really given to the federation account
It seems every other week,the GMD of NNPCL will come out with various figures on what is being generated and days later he will give a different figure
Once this Government can tidy up the mess at the NNPCL,it will go a long way to fixing our foreign exchange quagmire

Finally,as we head into 2024,I seriously want to encourage any forward looking businessman who has plans of staying in business in the new year to consider the option of earning in foreign currency
You must as a matter of necessity,begin to understand that the Nigerian market is no longer enough to sustain your business
You must begin to think of ways to packaging your goods and services to attract the Diaspora
Kindly visit my signature about good properties around the Ibeju Lekki Industrial Hub

Nlfpmod, not looking good......

Why are we depending sorely on oil.......

Holiyo:
Congratulations! CBN is now a prophet

Stop exhibiting your ignorance with pride, in economics it is called futures.

Omooba77:
Why are we depending sorely on oil.......

Lazy mindedness of the people, still stuck in colonial abi military mentality.

Badnews everywhere for this country

Blackfire:
Badnews everywhere for this country

Inukwa ooooo

I wish the oil will just dry finish make everywhere bust one time