Oil theft is the reason Nigeria cannot meet its production quota, Governor of Central Bank of Nigeria (CBN) Godwin Emefiele, has said.
Emefiele said this on Monday at the end of the 284th monetary policy committee (MPC) meeting in Abuja, adding that with oil prices going up globally, this was compounded by the shortage of supply of petroleum products.
After the MPC meeting, the committee concluded to retain the Monetary Policy Rate (MPR), otherwise known as the interest rate, at 11.5 percent with the asymmetric corridor of +100/-700 basis points around the MPR.
The apex bank governor, said one of the factors responsible for the issue of fuel scarcity in the country apart from the ongoing Russia and Ukraine war is a high trend of oil theft.
“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 resulted in the increase in the price of diesel and petrol,” Emefiele said.
“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.”
Emefiele further spoke on MPC’s concern on the unprecedented oil theft as well as the hike in the price of diesel, adding that it has a huge impact on the economy.
He consequently urged the management of the sector to take quick action.
“The Committee also raises concerns on the increase in oil theft and the impact on government revenue and reserves,” he said.
“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 shutdown of generating assets.”
He added that the Nigerian National Petroleum Company (NNPC) Limited and the finance ministry are working towards ensuring the availability of fuel.