Business How Niger Delta Militants Can Help Nigeria Out of Recession

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ProfRem

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Nigeria’s economy can expand by 2.5 per cent next year, rebounding from a recession entered in the second quarter, as long as it can keep oil output at 2.2 million barrels per day.

Africa’s largest economy faces its worst crisis in 25 years, brought on by low oil prices which have slashed government revenue, hammered its currency and caused chronic dollar shortages frustrating businesses.

Aurelien Mali, Moody’s senior analytical adviser for Africa, told Reuters that increases in oil output will help Africa’s top oil exporter generate more dollars.

“With resumption of oil production and the dollars that should come, we expect that Nigeria would be able to accelerate the implementation of the budget,” Mali said.

From about over 2 million barrels per production, attacks, mainly by the Niger Delta Avengers, on oil installations cut output by over 600,000bpd amidst global cut in oil prices.

President Muhammadu Buhari Appeals to Niger Deltas

President Buhari has called on militants in the Niger Delta to stop blowing up crude oil pipelines.

The President also asked the militants to embrace the enormous potentials in agriculture and stop the destruction of the environment.

His statement: “I wish to acknowledge the unrelenting efforts of the Nigerian Agip Oil Company, which, in its bid to prove that oil production and agriculture can coexist, has for the past 29 years supported its host communities to focus on agriculture through the GRP, a corporate social responsibility initiative, which has resulted in sustainable development in these communities.

“I appeal to the people of the Niger Delta region to embrace peace and focus on agriculture for sustainable economic development and wealth creation.

“The present administration is committed to doing everything possible to support the people of the Niger Delta to achieve their potential in agriculture, which is far more than its endowments in oil and gas.”

Buhari Met with Niger Delta Elders

You will recall that the Federal Government also initiated talks with elders from the oil rich region to seek a solution to the constant bombing of oil facilities in the Niger Delta.

Leaders of the Niger Delta region on Tuesday presented 16 demands to President Muhammadu Buhari.

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Militants Resumed Bombing


The Niger Delta Avengers have slammed Buhari over what they have described as his demeaning treatment of people from the oil rich region.

The Niger Delta Avengers immediately after Buhari's meeting with Niger Delta elders said its strike team resumed attacks on oil facilities in the region because the federal government has refused to honour the ceasefire it entered into with the militant group to allow for a dialogue.

Can the Government looks elsewhere for help?

In the third quarter report of the National Bureau of Statistics released o Monday, November 21, 2016, non-oil part of the economy grew by 0.03 percent in the third quarter, compared with negative growth in the first two, which was "largely driven" by 4.54 percent growth in the farming sector.

This means that there is hope on the hinge of Agriculture, but will these be able to to take the nation out of economic mess in short plan? No.

Will the Niger Delta agitators help the country out of the mess by putting a stop to the oil installation attack and crippling of the nation's wealth?
 
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