- Nigeria’s crude production rose to 1.307mbpd in July – OPEC
Nigeria’s 36 states received N39.62 billion as ecological fund allocations from June 2023 to June 2024, data from the Federation Account Allocation Committee published by the National Bureau of Statistics showed.
The ecological fund is a crucial part of Nigeria’s federal revenue allocation, specifically designated to address various environmental challenges nationwide, including erosion, desertification, flooding, oil spills, and drought.
Established in 1981, the fund is drawn from the Federation Account at a rate of two per cent, with the primary objective of assisting all tiers of government in tackling ecological problems. The fund’s disbursement process is managed by the Ecological Fund Office, under the Office of the Secretary to the Government of the Federation.
Over the past year, the Federal Government distributed N39.62 billion among the 36 states. The disbursements reflect the varying degrees of environmental challenges faced across Nigeria, with funds allocated based on the severity of these challenges.
Kano State received the highest allocation, totaling N2.1billon, averaging N175 million per month.
Borno State, which is dealing with environmental damage linked to the insurgency, received N1.68 billion (averaging N140m per month), the second-highest allocation.
Recent heavy rainfalls reportedly rendered a portion of the Kano-Maiduguri highway impassable, causing significant disruptions to traffic flow.
Many states have also been affected by the rains.
The Federal Government has terminated the contract for Section 1 of the Kano-Maiduguri road project due to prolonged delays.
This decision was announced by the Minister of Works, David Umahi, in a statement by his Special Adviser (Media), Uchenna Orji, on Saturday. The minister has also ordered an immediate assessment of the road project.
A report from the United Nations Office for the Coordination of Humanitarian Affairs, titled, ‘Nigeria BAY States, Shelter/NFI Sector Flood Situation Update, April – July 2024 (Issue 1.0)’, stated that severe weather incidents between April and July 2024 directly affected 124,275 individuals across 56 internally displaced persons sites in Borno, Adamawa and Yobe States.
The region experienced 46 heavy windstorms, 66 flooding events, and 115 instances where both windstorms and flooding occurred simultaneously, impacting 26,493 households.
“These incidents have caused significant damage to camp infrastructure, including shelters, safe spaces, and essential WASH (Water, Sanitation, and Hygiene) facilities such as latrines and showers,” the report stated.
The report highlighted a seven per cent increase in such weather-related incidents compared to the same period last year, exacerbating the already critical situation in these areas.
As of July, only five percent of the affected population had received any form of shelter or non-food items assistance.
The destruction caused by the ongoing rainy season has placed immense pressure on humanitarian efforts, which are already struggling to meet the needs of over a million IDPs across the three states.
Borno State has been the hardest hit, with 114,747 IDPs affected, followed by Yobe with 9,419 and Adamawa with 309.
The scale of the damage is significant, OCHA noted, indicating that 51 IDP sites and 134 host communities have been flooded.
In total, 26,779 shelters were damaged by either flooding or windstorms, leaving 24,463 households in desperate need of shelter.
Other top recipients of the ecological fund include Lagos with N1.81billion (averaging N150.83m per month), Kaduna with N1.4billion (averaging N124.17m per month), and Sokoto with N1.49billion (averaging N124.17m per month).
Conversely, the states with the lowest allocations include Kwara, receiving N602.3m (averaging N50.20m per month), Bayelsa with N598.79 million (averaging N49.90m per month), and Ondo with N629.42 million (averaging N52.45m per month).
Edo received N632.8million (averaging N52.73m per month), and Abia received N633.68 million (averaging N52.81m per month).
Adamawa received N1.24bilion (averaging N103.33m per month) to address issues such as erosion and flooding. Anambra was allocated N1.35bn (averaging N112.50m per month).
Benue, affected by desertification and flooding, received N758.97m (averaging N63.25million per month). Cross River received N680 million (averaging N56.67m per month), with the funds targeted at managing deforestation and erosion.
Enugu received N1.36billion (averaging N113.33m per month) for its ecological interventions.
Experts emphasised the vital role of the ecological fund in financing environmental protection projects across the country. Its ultimate goal is to ensure sustainable development and protect lives and property from ecological disasters.
Nigeria’s crude production rose to 1.307mbpd in July – OPEC
Also, the Organisation of Petroleum Exporting Countries says Nigeria’s crude oil production rose month-on-month (m-o-m) by 1 percent to 1.307 million barrels per day (mbpd) in July 2024 from 1.276mbpd reported in June.
This was contained in the OPEC monthly report for August released on Monday.
The report said the country’s crude oil production increased by an average of 30,000 barrel per day in July over the previous month’s production rate.
Despite the increase, the July figure however still fell short of the 1.785mbpd budget benchmark set for the year by the Federal Government.
According to the OPEC report, Nigeria’s secondary production figure for July was 1.388mbpd as against 1.369mbpd translating to a 16,000 bpd daily increase.
The report noted that the OPEC-12 secondary sources recorded an averaged crude oil production of 26.75mbpd in July 2024, 185,000 barrels per day higher m-o-m driven by increased production from Saudi Arabia, Iran and Iraq, while Libya recorded decreased production.
Other African countries like Congo and Equatorial Guinea reported decreased production while Algeria increased its production by 3,000 barrels per day during the month.
OPEC is however optimistic about the Nigerian economy based on the gains recorded by the County’s Eurobond as well as global financial analysts reports.
“Nigeria’s Eurobonds recorded gains, reflecting increased investor confidence in the country’s fiscal outlook.
“Moody’s Investors Service upheld Nigeria’s Caa1 ratings for both local and foreign currency long-term issuers and maintained a positive outlook. It also confirmed Nigeria’s foreign currency senior secured debt rating at Caa1, praising the monetary authorities’ efforts to address CPI inflation and the reforms aimed at unifying the country’s multiple exchange rates into a single system.
The Stanbic IBTC Bank Nigeria PMI fell to 49.2 in July, down from 50.1 in June, indicating a slight downturn in private-sector operating conditions.
Despite these challenges, ongoing policy reforms and improved investor interest in Nigeria’s fiscal management may contribute to a more stable economic path in the future,” the report stated.
