Business
Household Expenditure Surge By 3.3% In Q2’23
According to data released today by the National Bureau of Statistics (NBS), real household consumption expenditure increased 3.3% YoY in the second quarter of 2023 (Q3’23).
This indicates a change from the downward patterns seen in the preceding quarters, starting with Q2’22, when growth was -5.21 percent.
This was revealed by the NBS in its Q1 and Q2 2023 Nigerian Gross Domestic Product (Expenditure and Income Approach) Report.
The bureau stated: “Household final consumption, in real terms, grew by -24.95 per cent and 3.30 per cent in Q1 and Q2 of 2023 respectively, on a year-on-year basis.
“Moreover, the growth rate of Q1’23 was lower compared to the growth rate of the corresponding quarter of 2022 which was 8.66 per cent and Q2 of 2023 was higher than Q2 of 2022 which recorded -5.21 per cent.
“The observed trend since 2020 indicates that real household consumption expenditure declined in Q1 and Q2 of 2020, accounting for negative growth rates informed by the pandemic.
“However, positive growth rates were recorded since Q3’20 as recovery from the pandemic was witnessed, while growth became negative from Q2’22 to Q1’23 occasioned by rising prices, the cash crunch witnessed earlier this year as well as the current challenging economic conditions.
“Furthermore, growth in Q2’23 stood positive recorded at 3.3 per cent, a departure from the negative trend recorded in the previous quarter.
“The growth rates of Q1 of 2023 and Q2 of 2023 indicate a lower rate relative to the corresponding quarter of Q1’22 and a higher rate compared to Q2′ 22.
“On a quarter-on-quarter basis, real household consumption expenditure decreased by 20.29 per cent in Q1’23 and rose by 11.68 per cent in Q2 of 2023.
“Household consumption accounted for 57.18 per cent of real GDP at market prices in Q1 23, and 64.05 per cent in Q2’23.
The bureau also noted that in Q1’23, the GDP by expenditure grew in real terms by 2.31 per cent YoY and recorded 2.51 per cent in Q2’23.
It added: “This shows a sustained positive trajectory since Q4’20. “However, this was a reduction of 0.8 per cent in growth of Q1’23 and a fall of 1.03 per cent in Q2’23 compared to the corresponding period of 2022.”
While the expenditure approach measures the final uses of the produced output as the sum of final consumption, Gross Capital Formation, and exports less imports, which are all taken into consideration in turn in the report, the GDP can be derived, according to NBS, as the value of all goods and services available for final uses and export.
Business
Adoption of AI Feature as NIPetGE Pays Courtesy Call at NNPC Ltd
Enhanced adoption of artificial intelligence and other digital technologies to improve operations in Nigeria’s oil and gas industry is taking the centre stage in relevant circles.
The issue came up strongly when the President-elect of the Nigerian Institute of Petroleum and Gas Engineers NIPetGE, Prisca Kanebi, paid a courtesy call at the Nigerian National Petroleum Company Limited (NNPC Ltd), Abuja.
Biztellers reports that the Kanebi led delegation was received by the Group Chief Executive Officer of the NNPC Ltd, Bayo Ojulari, represented by the Executive Vice President, Gas, Power and New Energy, Olalekan Ogunleye.
According to a statement made available on Sunday, discussions at the meeting focused on the future of Nigeria’s hydrocarbon industry amid global energy transition concerns, technological changes and sustainability targets.
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The statement indicated that the NNPC Ltd acknowledged the role of NIPetGE in policy advocacy, technical development and innovation within the sector.
Speaking during the meeting, Kanebi highlighted recommendations from the institute’s recent conference, including the proposed establishment of a national centre for intelligent energy systems to support the deployment of artificial intelligence, the Internet of Things and robotics across the petroleum value chain.
She also commended the Federal Government’s decarbonisation efforts and reiterated the institute’s support for policies aimed at improving sustainability in the industry.
The institute also recommended the creation of a hydrocarbon-linked emissions trading system to allow Nigeria to take part in global carbon markets.
The institute also proposed fiscal incentives to support local manufacturing and service delivery in the oil and gas sector, as well as the expansion of the Energy Transition Plan to include measurable upstream decarbonisation targets backed by tax credits.
Other proposals included increased public-private partnerships in emission control infrastructure, carbon capture projects and hybrid renewable energy initiatives.
Both organisations also stressed the need for stronger collaboration between industry and academic institutions to improve professional capacity and align petroleum engineering practice in Nigeria with international standards.
The institute further disclosed that its bill seeking chartered status had passed second reading and was progressing towards a third hearing at the National Assembly.
It added that NNPC Ltd pledged support for future collaborations with the institute on initiatives aimed at improving efficiency and innovation in the energy sector.
Business
FHC Orders NUPRC to Comply with PIA
Business
Local Firms Lead Revival of Idle Oil Wells – SPE
Nigeria’s indigenous oil and gas companies are reopening dormant wells and ramping up production from assets acquired from international oil companies (IOCs) to boost crude oil output.
The Society of Petroleum Engineers (SPE), Nigeria Council, made the assertion through its Chairman, Francis Nwaochie, on the sideline of the Offshore Technology Conference (OTC) which ended at the weekend in Houston, Texas.
Nwaochie said indigenous operators were already taking advantage of opportunities created by disruptions in the global energy market to increase production from existing assets.
According to him, local firms that recently acquired onshore and shallow water assets from IOCs were aggressively reviving inactive wells and maximizing available infrastructure to raise output levels.
“What we are seeing now is that indigenous companies are reopening wells from the assets they acquired from the IOCs. Some of them have almost doubled production from those existing assets,”.
He explained that the renewed focus on dormant wells and existing facilities had become critical at a time the global oil market was facing supply shortages triggered by geopolitical tensions in the Middle East.
The SPE Nigeria Council Chairman noted that Africa, particularly Nigeria, was well positioned to benefit from the supply gap because of the continent’s relative stability compared to some other oil-producing regions.
“There is a huge opportunity for Africa right now. The focus is gradually shifting to Africa because of the volatile environment in many other producing regions.”
He stated that indigenous operators were leveraging digital technologies, financing opportunities and local expertise to improve production efficiency and optimise existing fields.
He added that stronger implementation of local content policies was also helping to create a more stable operating environment for oil and gas investments.
“Local content is very critical. Once communities and local companies clearly understand their roles and benefits, then you create peace across the industry. Business only thrives in peaceful environments.”
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Nwaochie also stressed the need for Nigeria to move beyond crude oil production and begin developing indigenous technologies for the energy industry.
According to him, SPE Nigeria Council was actively supporting innovation and technology development among young Nigerian engineers and researchers.
He disclosed that the association was engaging the National Universities Commission(NUC) on reforms to engineering curricula in universities to better prepare graduates for the future of the energy industry.
“One of our major focuses in SPE is technology development. We should not only import machines and equipment, we must begin to develop our own technologies locally.”
Nwaochie revealed that SPE was already supporting local innovators working on technologies such as remotely operated underwater vehicles (ROVs), noting that indigenous technology development will strengthen Nigeria’s economy and deepen local participation in the oil and gas sector.
“We may not get everything right immediately but we must start somewhere. That is how countries that dominate the global energy industry built their capacities.”





