Governor of the Central Bank of Nigeria, Godwin Emefiele has explained why Nigeria is unable to meet its oil output quota.
Speaking on Monday, March 21, at the end of the 284th monetary policy committee (MPC) meeting in Abuja, Emefiele said the country is unable to meet its production quota due to unwarranted oil theft in the sector.
He also blamed the fuel scarcity witnessed in the country on the ongoing Russia and Ukraine war.
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“Apart from the Russia-Ukraine war, crude prices have increased due to supply shortage and of course, for Nigeria, we have not been able to meet the export quota primarily because of unwarranted oil theft that we see in our environment today. This has increased in the price of diesel and petrol.
“Also, because of the war, there’s been a rising price not just in crude oil but also in food. The increase is so astronomical that it is not just affecting Nigeria but the world.”
Expressing the MPC’s concern on the unprecedented oil theft, Emefiele added;
“The Committee also raises concerns on the increase in oil theft and the impact on government revenue and reserves.
“It is however hopeful that the takeoff of Dangote refinery will help improve the supply of petroleum products in Nigeria.
“MPC also said the rising price of diesel is compounded by the inadequate supply of electricity in Nigeria, which has impacted domestic prices.
“It, therefore, advises the authorities to take specific and urgent action to avoid many powering systems to shut down and turn around maintenance to stop the shut down of generating assets.”
The CBN Governor also revealed that the Nigerian National Petroleum Company (NNPC) Limited and the finance ministry are working towards ensuring the availability of fuel.
“The minister of finance and NNPC are holding engagements to see what can be done to make sure that petroleum products are made available. So that they can be imported and all filling stations can have these products, and the bank is ready to intervene to make sure that these shortages stop.”