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Tag: OPEC

  • OPEC authorizes oil output target of 1.5 million barrels per day for Nigeria

    OPEC authorizes oil output target of 1.5 million barrels per day for Nigeria

    The Organization of Petroleum Exporting Countries (OPEC) has given Nigeria a output target of 1.5 million barrels per day as from 2024.

    This was, however, significantly lower than Nigeria had hoped for and came after intense negotiations that lasted several days.

    Recall that the Federal Government had during the week pegged crude oil output at 1.78 million bpd for next year.

    OPEC also lowered Angola’s output target.

    The move followed a meeting in June where OPEC+ agreed to a complex deal that revised production targets for several members.

    OPEC had tasked three consultancies – IHS, Rystad Energy and Wood Mackenzie – with verifying production figures for Nigeria, Angola and Congo.

    Based on that, it has now given Nigeria a 2024 target of 1.5 million barrels per day, Angola 1.11 million bpd and Congo a target of 277,000 bpd.

    In June it had been agreed, pending the assessments by the consultancies, that Angola could produce 1.28 million bpd and Nigeria 1.38 million bpd and possibly as much as 1.58 million bpd.

    Both have failed to meet previous quotas hurt by underinvestment and security issues.

    Disagreements over African output quotas were cited by sources as a reason OPEC+ postponed an in-person meeting scheduled for November 26, until yesterday, Reuters said.

    However, reports says that Angola on  was unhappy with its 2024 output target and has vowed to increase it to 1.8 million bpd.

    South American country of Brazil is finalizing paper works to join OPEC in 2024.

  • OPEC postpones ministerial meeting to November 30 in Vienna

    OPEC postpones ministerial meeting to November 30 in Vienna

    Organization of Petroleum exporting Countries OPEC+alliance has postponed  the ministerial meeting initially fixed for Saturday and Sunday, November 25 and 26, 2023, to Thursday, November 30, 2023.

    The venue of the meeting in Vienna Austria  remains unchanged.

    This was disclosed on Wednesday by the Vienna-based agency of the Petroleum Exporting Countries on its website.

    “The 187th Meeting of the OPEC Conference, the 51st Meeting of the Joint Ministerial Monitoring Committee (JMMC), and the 36th OPEC and non-OPEC Ministerial Meeting (ONOMM), originally planned for 25 and 26 November 2023, have been rescheduled to Thursday, 30 November 2023,” the statement read.

    OPEC is an organization enabling the cooperation of leading oil-producing countries to collectively influence the global oil market and maximize profit.

    OPEC, an intergovernmental institution, comprises of 13 Member Countries that seek to coordinate petroleum policies and support balance in the oil market.

    The delay to the meeting into next week might be to allow more time for countries to discuss both compliance with existing output cuts and potential additional cuts, Reuters reports.

  • How Nigeria’s economy grew by 2.4% in Q1 – OPEC

    How Nigeria’s economy grew by 2.4% in Q1 – OPEC

    The Organisation of the Petroleum Exporting Countries (OPEC) has said that Nigeria’s economic growth in the first quarter of 2023 (1Q23) stood at 2.4 per cent year-on-year (y-o-y).

    OPEC made this known in its Monthly Oil Market Report for August obtained on Friday. OPEC said this was against a growth of 3.6 per cent in fourth quarter of 2022, an indicator of 2023 anticipated slowdown.

    According to the report, after Nigeria’s economy grew by 3.3 per cent in 2022, it is forecast to decelerate in 2023.

    It said high inflation continued to burden the Nigeria’s economy.

    “Inflation data for June shows an ongoing acceleration, with an annual rate of 22.8 per cent y-o-y, following 22.4 per cent y-o-y in May and 22.2 per cent in April and 22 per cent in March.

    “Food inflation has been a key factor in this rise, reaching 25.1 per cent year-on-year (y-o-y) in June, after 24.8 per cent y-o-y in May.

    “A combination of factors including conflict, the impact of climate change, population pressures, and the below-average output of the agricultural sector, exacerbated the scarcity of food resources over recent years,’’ it said.

    To assist, it said the Nigerian government had unveiled a comprehensive financial package amounting to N500 billion.

    To lower inflation, the report said the Central Bank of Nigeria (CBN) lifted the key policy rate by 25 basis points to 18.75 per cent in July.

    As a consequence of the ongoing challenges, it said in May 2023, Stanbic IBTC Bank Nigeria Purchasing Managers Index retracted to stand at 51.7 in July, after a level of 53.2 in June was reached.

  • Dollar index decreases by 1.6% in July – OPEC

    Dollar index decreases by 1.6% in July – OPEC

    The Organisation of the Petroleum Exporting Countries (OPEC) has said the U.S. dollar index decreased by 1.6 per cent month-on-month (m-o-m) in July, erasing gains from the previous period.

    The dollar index rose for the second consecutive month in June, increasing marginally by 0.3 per cent m-o-m.

    OPEC said this in its Monthly Oil Market Report for August obtained on Friday. The report, while stating the impact of the dollar and inflation on oil prices, said the dollar receded, although the Federal Reserve hiked interest rates by 25 basis points (bp) in July.

    This, it said, underscored a shift in risk sentiment as investors’ global macroeconomic outlook improved, and financial markets wagered that the U.S. economy would avoid recession.

    According to the OPEC report, Year-on-Year (Y-o-Y), the index was down by 5.2 per cent.

    The OPEC report said the dollar experienced mixed movement against major developed market currencies for a second consecutive month in July.

    It said it recovered against the euro by 2.2 per cent m-o-m, but receded against the yen and the pound by 0.2 per cent and 2.2 per cent, respectively, over the same period.

    It said Y-o-Y, the dollar was up by 8.9 per cent and 3.0 per cent against the euro and yen, respectively; however, it was down by 7.1 per cent against the pound over the same period.

    “In terms of emerging market currencies, the dollar declined for a second consecutive month in July against the rupee and the Brazilian real by 0.1 per cent and 1.1 per cent respectively, m-o-m.

    “Meanwhile, it advanced against the yuan for a second consecutive month by 0.3 per cent m-o-m,” the oil market report said.

    It said Y-o-Y, the dollar was up by 3.2 per cent and 6.7 per cent against the rupee and yuan, respectively; however, it was down by 10.6 per cent against the real over the same period.

    It said the differential between nominal and real OPEC Reference Basket (ORB) prices widened m-o-m.

    It said inflation (nominal price minus real price) went from negative 1.78 dollars per barrel in June to negative 3.11 dollars per barrel in July, a 76.7 per cent increase m-o-m.

    It further stated that in nominal terms, accounting for inflation, the ORB price went from 75.19 per cent per barrel in June to 81.06 per barrel in July, a 7.8 per cent increase m-o-m.

    It added that Y-o-Y, the ORB was down by 25.3 per cent in nominal terms.

    In real terms (excluding inflation), it said the ORB went from 76.95 dollars per barrel  in June to 84.17 dollars per barrel in July, a 9.4 per cent increase m-o-m.

    “Y-o-y, the ORB was down by 24.4 per cent in real terms,” it said.

  • OPEC expresses optimism on oil demand growth in 2024

    OPEC expresses optimism on oil demand growth in 2024

    The Organisation of Petroleum Exporting Countries (OPEC), has expressed optimism in oil demand growth in 2024 despite the current market slowdown.

    According to sources close to OPEC, the body will likely maintain an upbeat view on oil demand growth for next year by the time it publishes its first outlook later this month, predicting a slowdown from this year but still an above-average increase.

    The OPEC’s forecast for 2024 will likely be lower than the growth it expects for this year of 2.35 million barrels per day, or 2.4 per cent, an abnormally high rate as the world moves out of the coronavirus pandemic.

    Even so, it would still be well above the annual average of the past decade with the exception of the pandemic years and above predictions by the International Energy Agency(IEA), which sees a major slowdown in demand growth next year to 860,000 bpd.

    OPEC and the IEA have repeatedly clashed in recent years, with OPEC criticising the IEA, which advises industrialised countries, for what it sees as irresponsible predictions and subsequent data revisions.

    Oil demand growth is an indication of likely oil market strength and forms part of the backdrop for policy decisions by OPEC and its allies, known as OPEC+. The group in June extended supply curbs into 2024 to support the market as concern over weakening demand pressured prices.

  • Oil Markets Rebound as Traders Seek Cover, but US Debt Concerns Limit Gains

    Oil Markets Rebound as Traders Seek Cover, but US Debt Concerns Limit Gains

    In early Asian trade on Friday, oil markets made a partial recovery as traders engaged in short-covering activities before the weekend.

    However, the gains were limited by uncertainties surrounding the U.S. debt ceiling and renewed fears of a regional banking crisis in the United States.

    Interestingly, the oil market largely disregarded the global oil demand forecast for 2023 issued by the Organization of the Petroleum Exporting Countries (OPEC).

    The forecast projected an increase in oil demand from China, the world’s largest oil importer.

    Despite this positive outlook, market participants seemed to focus more on the immediate uncertainties and potential risks, leading them to overlook the optimistic long-term projections.

    Brent crude futures experienced an increase of 36 cents, or 0.5 per cent, reaching $75.34 per barrel by 0051 GMT. Similarly, U.S. crude futures gained 41 cents, or 0.6 per cent, reaching $71.28 per barrel.

    These price movements indicate a rebound from the losses of approximately 3-4 per cent incurred over the past two trading sessions.

    Despite the recovery, both benchmarks were on track for minimal changes for the week, following three consecutive weeks of decline.

    The U.S. government has expressed its intention to purchase oil when prices consistently remain at or below the range of $67 to $72 per barrel. This statement adds another layer of uncertainty to the market, contributing to cautious investor sentiment.

    Investor caution persists due to uncertainties surrounding the U.S. debt ceiling and fears of a regional banking crisis. Additionally, concerns about weak demand in China contribute to the cautious sentiment.

    China’s April consumer price data shows slower growth than expected, and factory gate deflation worsens, indicating the need for additional stimulus to bolster the post-COVID-19 economic recovery, which remains uneven.

  • Humans getting worn out like clothes – By Owei Lakemfa

    Humans getting worn out like clothes – By Owei Lakemfa

    THE world is changing at a Humans getting worn out like clothes dizzying pace. Two powerful blocs that can determine the future of humanity are rapidly solidifying. The North Atlantic Treaty Organisation, NATO, donning military fatigue, leading in the arms race with a mindset to conquer, is digging in to preserve the old world order.

    On Tuesday, April 4, 2023, Finland, its newest recruit, took the salute at the NATO Headquarters in Brussels before Anthony Blinken, United States, US, Secretary of State who represented his country. The US is the Supreme Commander of the alliance.

    As Finnish President Sauli Niinisto engaged in a flag-raising ceremony to an uncertain future, NATO Secretary General Jens Stoltenberg mocked Russia, saying with little Finland joining, President Vladimir Putin has failed to “slam NATO’s door shut”.

    Indeed, the recruitment of Finland is likely to heighten tension between NATO and Russia as Finland shares a 1,340- kilometre border with the latter, effectively doubling the border stretch between the two antagonists. Russia sees Finland joining the alliance as a provocation and an attempt by NATO to encircle it; a main reason for its war in Ukraine.

    Finland was part of Russia from 1809 until its independence on December 6, 1917. Compared to Russia, Finland is but a fingerling; the former’s 16, 376,870 km landmass is over 48 times that of Finland with a 338,440 total landmass. Russia’s 143.4 million population is over 25 times Finland’s 5,601,347 population. Militarily, while Russia has 5,977 nuclear warheads, Finland has none. Its only nuclear plant is powered by Russian technology. Economically, Finland gets 60-70 per cent of its gas from Russia.

    There may be debates whether it made sense for Finland to join NATO, but what may not be debatable is that if there were to be an armed conflict between NATO and Russia, Finland will be a sitting duck.

    The second bloc firming up is the BRICS, the acronym for the Brazil, Russia, India, China and South Africa coalition which wears the overall of a factory worker. It appears interested only in an economic alliance that would create a new world economic order free from dollar dictates.

    New countries have joined the BRICS, including Bangladesh and Uruguay and two American allies: Egypt and the United Arab Emirates. Some other countries like Iran have lined up to join; but perhaps the most sensational is Saudi Arabia, one of America’s biggest allies. Yes, the same country which agreed its oil will only be priced in the American dollar which then became the only currency recognised by the Organisation of Petroleum Exporting Countries, OPEC. This was what gave rise to the petrol dollar world and the dollar consolidating itself as the reserve currency of the world.

    Also, the US which accounts for 37 per cent of all world arms exports has perhaps its biggest customer in Saudi Arabia which buys up one-quarter of those arms.

    The US has, in return, shielded Saudi Arabia on issues of gross human rights violations, subjugation of women, the liberal use of the death penalty which includes beheading, elimination of perceived enemies and crimes against humanity such as the deliberate bombing of schools, hospitals and markets in Yemen. So, Saudi Arabia turning to BRICS is not just a major diplomatic shift, but also, a rethink of its international relations policies.

    Saudi Arabia stunned the world at the World Economic Summit in January 2023 when its Finance Minister, Mohammed al-Jadaan, said: “There are no issues with discussing how we settle our trade arrangements, whether it is in the US dollar, whether it is the euro, whether it is the Saudi riyal”. He further clarified Saudi Arabia’s apparent new attitude to the dollar: “We enjoy a very strategic relationship with China and we enjoy that same strategic relationship with other nations, including the US, and we want to develop that with Europe and other countries who are willing and able to work with us.”

    A month earlier, Chinese President Xi Jinping, during a visit to the Gulf, had told Arab leaders that his country wants to buy oil and gas in its own yuan currency. China buys one quarter of Saudi oil.

    The US has often weaponised the dollar in its selective sanctions against countries. But it backfired when it did the same thing in sanctioning Russia over the war in Ukraine. Russia did not only break the sanction with the Ruble becoming the most enhanced currency in 2022, but some other countries decided to break with the dollar so if the US were to sanction them, the effects will not be devastating. With that, the race towards de-dollarisation was on.

    China and Brazil ditched the dollar by agreeing to trade in their own currencies, while India and Malaysia agreed to trade in the Indian rupee in addition to other currencies.

    In another surprise, France, a staunch ally of the US, closed a liquefied natural gas, LNG, trade with China, not in dollars, but in yuan! French President Emmanuel Macron perhaps in trying to reassure the US he is not shifting alliances, last Wednesday during a tour to Beijing, warned China not to supply arms to its Russian ally.

    This of course is a joke. China does not appear to have a choice in the matter as it is aware that if NATO is able to defeat Russia, it will be the next target. So for China, Russia surviving the NATO onslaught, is in its strategic national interest.

    The battles, of course, are being fought on various turfs such as US moving against China’s TikTok on the basis of security concerns; that its data collection can be used by China. Pray, what about the data collection by American companies like Apple and Snap? Are they not used by the US and its security services?

    Whatever forms or shapes a changing world takes, a likely clash between the Euro-American alliance spearheaded by NATO and a counter force represented by BRICS, would see the rest of the world either joining one of the sides, or being helpless spectators because we lack the balls to create an alternative force.

    Even as the universe appears to be changing rapidly, the world order of the poor and the rich; the developed countries with means, and the underdeveloped countries, are not changing . So it is a world in which rapid changes are taking place, but essentially things remain the same.

    When I was a 13-year-old at the Methodist Boys High School, MBHS, Lagos we read a book in Yoruba language which featured a conversation between a young man and an elder. The former said: “See how the world is changing!” The elder replied: “No, it is not the world that is changing; it is humans that are getting worn out like clothes.”

  • 4 startling revelations that shook the oil sector in 2022

    4 startling revelations that shook the oil sector in 2022

    The Oil and Gas sector has remained the mainstay of the Nigerian economy despite Government’s best efforts at diversification into Agriculture and Mining in order to manage volatility and provide a more stable path for equitable growth and development.

    In 2022, Nigerians experienced the results of a supply shock with a tight oil supply and supply disruptions that drove prices as high as N300 per liter in some parts of the country and forced food inflation to soar to 23.7 per cent as of October.

    Nigeria failed to benefit from higher crude oil prices witnessed this year in the global oil market in the wake of Russia’s invasion of Ukraine which not only caused a global disruption in the oil and gas supply but also affected every economic activity reliant on hydrocarbons.

    Crude oil prices skyrocketed from $74.1 per barrel in January and peaked at $123.7 per barrel in June, according to Statista.

    Oil production has been on the decline since mid-2020, reflecting low investment and significant leakages associated with poor maintenance and theft.

    Here are the four most outstanding revelations that shook the Nigerian oil sector in 2022:

    1. Importation of substandard fuel: The Nigerian National Petroleum Company Limited (NNPCL) said it received a report from its quality inspector on 20th January 2022, confirming the presence of emulsion particles in Premium Motor Spirit (PMS) cargoes shipped to Nigeria from Antwerp-Belgium. This resulted in a supply disruption and created long fuel queues that characterised the rest of the year.
    2. Drop in Gross Domestic Product (GDP) contribution to the Nigerian economy: According to the latest GDP figures released by the National Bureau of Statistics (NBS), the contribution of the oil sector to the economy fell from 6.33 percent in the second quarter of 2022 to 5.66 per cent in the third quarter. Figures recorded in the corresponding period of 2021 showed that the sector contributed 7.49 percent to GDP.
    3. Over 700, 000 barrels of crude stolen per day: Nigeria’s Minister of State for Petroleum Resources Timipre Sylva, disclosed that the country loses at least 700, 000 barrels of crude per day. In October, an intercepted vessel, MT Deima with International Maritime Organisation Number: 7210525 was later set on fire by Nigerian security agents, amidst calls for a probe.
    4. Nigeria unable to meet OPEC quota: The country’s crude oil production which hovers around 900, 000 barrels per day falls far short of the quota of 1.826 million barrels per day quota approved by the Organisation of Petroleum Exporting Countries (OPEC), a trend which industry analysts describe as a fiscal time bomb. Pipeline vandalism, lack of investment in the sector, operational and maintenance issues have been identified as some of the factors responsible for the decline in crude oil production.
  • OPEC: Nigeria drops in ranking, now 7th oil producing nation

    OPEC: Nigeria drops in ranking, now 7th oil producing nation

    Organization of the Petroleum Exporting Countries (OPEC) has ranked Nigeria 7th in crude oil production for the month of November.

    The ranking was arrived at after the country’s production output and monthly review for  October.

    Nigeria’s output was put at a mere 1.014 million barrels per day in October thereby making it drop to 7th behind other producing countries like Saudi Arabia, United Arab Emirates, Kuwait, Iraq, Angola and Algeria.

    According to OPEC, these was what the output looked like in October;Nigeria 1. 014mb/d in October, Angola produced 1. 051mb/d;  Algeria, 1.060mb/d; Kuwait 2.811mb/d; UAE, 3.188mb/d;  Iraq, 4.651mb/d; and Saudi Arabia, 10. 957mb/d.

    While Venezuela’s production was 711b/d, Equatorial Guinea’s was 57b/d. The likes of Gabon, Libya and Iran did not produce a barrel in the month.

    Nigeria used to rank fifth, with countries such as Angola and Algeria behind it in terms of crude oil production.

    West Africa’s largest economy has been through a rough path as its crude oil production is bedevilled by theft and pipeline vandalism.

    It was gathered that the country lost N415bn to the shutdown of nine crude oil terminals within the space of two months.

    The affected terminals, Forcados, Qua Ibo, Bonny, Bonga, Voho, Erha, Brass, Ukpokiti and Aje were shut down between May and June 2022.

    Crude oil losses recorded as a result of the shut-in include 258,000 from Forcados  between June 24 and 30; 1,470mb from Qua Iboe from June 15-30;  3, 545mb from Bonny from June 1-30; and 558,000b from Bonga between June 15 and 30.

    Expert have said that the country needs to identify the problems and apply drastic measures to address them on time.

     

  • Leadership is key to unlocking Nigeria’s growth potential – By Dakuku Peterside

    Leadership is key to unlocking Nigeria’s growth potential – By Dakuku Peterside

    Last week, this column discussed the need to rethink productivity and economic growth in Nigeria based on the presentation by foremost Economist Dr Ayo Teriba. This week, we shall look at leadership’s role in engendering a new economic growth model to give our country a leap forward.

    Nigeria’s adverse economic situation is stale news; many have accepted it as a norm that the country will continuously operate below its economic potential. This dire economic reality results from decades of bad economic policies and poor implementations, a chequered political history marred by a military incursion into politics, corruption, and the nascent difficulties occasioned by insecurity, economic sabotage, climate change, global pandemic crises and the Russian/Ukraine crisis. Nigeria is on her knees economically – with a high debt profile, poor revenue from the mono-product (crude oil) that is not even enough to service debts, inadequate foreign reserves, exchange rate crisis that has seen the value of the Naira hammered against other world currencies, high inflation, and high-interest rate.

    The Nigerian economic statistics are gloomy and are causing undue concerns for many stakeholders in the Nigeria project. Nigeria has navigated the murky waters of a financial quagmire for a few decades and has survived it, albeit with substantial economic bruises. The pervading sentiment is that no matter what happens, Nigeria will survive, things will continue as usual, and nothing will change for the better. William Pollard, a leading light in leadership, warned against this state of path dependency when he opined that “the arrogance of success is to think that what you did yesterday will be sufficient for tomorrow.” The economic policies and actions that kept us in our current financial quagmire must change for meaningful progress. Nigeria does not need the economics of survival anymore; we need the economics of growth, prosperity, and decent quality of life for Nigerians.

    One fundamental problem that is destabilising our economy is the lack of liquidity. Our negative balance of payment causes this illiquidity because our receipts from exports are far less than the expenditure on goods imported from abroad. This leads to a dwindling of our foreign reserves and a concomitant scarcity of foreign currency to fulfil the needs for the importation of foreign goods and services. This scarcity creates a parallel market that often aids the destruction of the Naira value. The unofficial devaluation of the Naira makes the cost of foreign goods expensive, even more so given the inflation ravaging some of these countries’ posts Covid-19. Local and Imported inflation is the bane of our economy.

    The Nigerian government needs to make more money from oil revenue and taxes and rely less on borrowed funds to cover recurrent and capital expenditures. They need to cover the budget deficits with massive loans from local and international institutions with high-interest rates, and we are still determining how our children will pay for these in the future. Even in an era of increase in the price of oil globally, Nigeria did not benefit maximally from this because of the low volume of oil production and oil theft that stopped Nigeria from meeting its OPEC quota monthly. The non-oil sector contributes little to Nigeria’s income statement because the bulk of these trades is for primary products with little or no extra value added to them in the value chain, and such goods command less revenue in the international market, adversely affecting our income statement.

    Unlocking Nigeria’s growth potential underscores, the need to, among other things, improve its liquidity to stabilise the system and grow the economy. The government must stabilise the exchange, interest, and inflation rates to make meaningful improvements in our economy. The exchange rate regime is a function of our foreign reserve adequacy. The global economy offers two pathways to increase our foreign reserves. It is either you earn more from exports, or you attract more foreign direct investment (FDI). Nigeria has historically preferred the path of exporting more. However, from 2010 to date, global exports have stagnated and even declined because of weak commodity prices. This has affected Nigeria drastically.

    Most countries are relying on a heavy inflow of FDI, which is the economic model chosen by Saudi Arabia, Brazil, India,and others. These countries get more FDI to compensate for shortfalls in exports. Foreign Direct investors will only come to Nigeria with offers to invest equity in public assets and a suitable investment climate. We offered foreign investors an opportunity in the Nigeria LNG project, which yielded substantial investment outcomes. We also did that with the liberalisation of the GSM sector, and we could see the investment inflow.

    The interest rate is another crucial factor in productivity and driving growth. Financial institutions provide interest rates on loans to businesses they need to run or expand their businesses. The higher the interest rates, the less likely companies will borrow for expansion, and the lower the interest rates, the more likely the companies will borrow for operational and growth reasons. Individuals also borrow from financial institutions for personal loans, credit cards, or product loans. The lower the interest rate, the more likely individuals will borrow to purchase goods and services that help businesses expand, mainly if local companies produce the goods and services. Another impact of interest rates is that they often are benchmarked with savings rates. The higher the interest rate on loans, the higher the interest rates on savings. When interest rates on savings are high, people tend to save, but when it is low, people tend to invest, especially in the equity market.

    The exchange and interest rates are monetary instruments influencing the inflation rate. Nigeria needs to stabilise its revenue by expanding its revenue sources, financialising its assets – especially its real estate, infrastructural, and portfolio assets – and maximising value chains across the various productive sectors. It needs to upskill its workforce to have the required skills in the knowledge economy, where knowledge and innovation are the keys to greater productivity. Therefore, human capital development is crucial in unleashing Nigeria’s growth potential.

    Unlocking Nigeria’s growth potential requires new economic thinking by leadership in the public and private sectors. Only good leadership that understands how to open the great possibilities of Nigeria in line with global realities and using tools and resources that work will lift Nigeria from its economic quagmire. Therefore, the 2023 Elections are providing an opportunity for a change in leadership, and Nigerians must look for leaders who understand the destination Nigeria must go to for growth and prosperity and who have what it takes to take Nigerians there. The intention of making Nigeria great is not enough, capacity, and intellectual ability to deliver are critical. The time for transformational leaders in Nigeria is now. Nigeria needs leaders that create a vision and use highly skilled individuals rather than politicians to run the economy of Nigeria. Gather intelligent people and develop and implement ways to improve revenue, optimise assets, and efficiently manage our liabilities.

    It is the responsibility of leadership to provide opportunities and the responsibility of individuals to contribute towards maximising opportunities. The government, on its part, must completely overhaul the economic system and structures to favour liquidity. Just like cash flow is the blood of a business, the government’s fiscal and external liquidity is vital in stabilising the economy. All avenues to improve the government’s income must be explored and used to make the government constantly liquid and viable.

    On top of managing its monetary policies, the government must tighten its fiscal policies to grow the per capita income and increase employment while reducing unemployment . They must create a business-friendly environment where innovation and creativity thrive, and productivity is encouraged. Productivity happens within businesses, and any harsh, volatile, or challenging business environment is tough on companies and hampers their growth. The better the business climate , the more profitable the business is, and the more profitable a business is, the more it attracts FDIs with concomitant expansions and increases both in the balance sheet of companies and their income statements.

    The government should understand the direct correlation between economic disempowerment and socio-political problems in the country. This is especially the case with youths, who, when unproductive for a while, tend to engage in anti-social behaviours, low- and high-level criminality, terrorism, banditry, and secessionism. The government must develop a plan to absorb most of our young people through training in new skills and upskilling them to fit into the new economic reality that rewards innovation and creativity higher than mundane production. They must use fiscal and monetary policies to stabilise consumer and equity prices, enhancing national resilience.

    There is no gainsaying the enormous potential to unleash its growth potentials Nigeria has. For a long time, Nigeria has been a country of potential – potentials that are never actualised. It is only transformational leadership that will transform and overhaul the system. We need this leadership in 2023 more than at any other time. It is foolhardy to do the same thing hoping for a different result repeatedly. We need leadership with the knowledge, capacity, intelligence, and experience to midwife the greatest economic re-engineering the country has ever gone through. All other stakeholders must contribute immensely by improving the value chains within the production sectors, consuming responsibly, and creating superior value that will attract material, financial and human resources from all over the world to Nigeria.

    We look forward to a new Nigeria!