A major shake-up is set to take place in Nigeria’s civil service as the Director-General of the Budget Office, Tanimu Yakubu, has confirmed that personnel changes will occur at the top level, particularly among the permanent secretaries.
Yakubu, in an exclusive interview with ARISE NEWS on Thursday, outlined these reforms as part of a broader strategy to improve the implementation of Nigeria’s 2024 budget.
“We are going to see changes, especially at the top level of permanent secretaries,” Yakubu said, as he revealed plans to ensure more efficient budget monitoring and better management of government projects.
He made it clear that these changes aim to enhance accountability and improve the monitoring of government spending. “We will increase the level of monitoring,” Yakubu assured, stressing that projects presented for payment would undergo thorough checks by the Budget Office before payments are made.
Yakubu further explained that these steps are crucial to ensure that the 2024 budget is implemented smoothly, with the government focusing on key sectors such as oil production, agriculture, and economic growth.
Key Oil Production Targets for 2024
One of the focal points of Yakubu’s interview was Nigeria’s crude oil production targets for the year. The government is optimistic about reaching a production level of 2.6 million barrels per day. Yakubu highlighted the significant investments being made and the government’s focus on improving security in the Niger Delta region, which has long been plagued by oil theft and sabotage.
He noted that while Nigeria has the potential to produce up to 3 million barrels per day, various forces seem to be limiting production. “Nigeria has sufficient investment to actually drill 3 million barrels per day, but it looks like some forces somewhere have decided that the country cannot get more than 900 thousand barrels per day,” Yakubu said. He pointed out that this was the same situation inherited by previous administrations, including those of Presidents Yar’Adua, Jonathan, and Buhari.
Yakubu also mentioned that recent asset transfers by Shell Petroleum Development Company (SPDC) could add 130,000 barrels per day to Nigeria’s production capacity by 2025, which would be a significant boost to the country’s oil sector.
Inflation and Economic Optimism
Turning to the issue of inflation, Yakubu expressed confidence that the government would be able to reduce the current inflation rate of 34% to 15%. A major factor in this reduction, he explained, would be the impact of increased domestic production.
Yakubu highlighted the expected contributions of local refineries, particularly the Dangote Refinery, which is set to begin production in the near future. He believes that as more refineries come online, the pressure on Nigeria’s currency, the naira, will ease, stabilising prices and reducing inflation.
“We think this will substantially reduce the pressure on the naira,” he said, also citing increased foreign portfolio investments as part of the strategy to improve Nigeria’s economic stability.
The Need for GDP Rebase
Another crucial issue discussed was the re-basing of Nigeria’s Gross Domestic Product (GDP), which has not been done for over a decade. Yakubu explained that it is standard practice for countries to rebase their GDP every five years to reflect the current state of their economy.
“The normal assumption is that those sectors that were under-assessed or even new economic activities that have not been brought into our GDP will certainly boost the GDP level,” he explained. Although he acknowledged that the absence of a recent GDP rebase has led to certain challenges, Yakubu remains optimistic that the results of the upcoming rebase will show positive growth for the country.
Government’s Agricultural Investments and Inflation
Yakubu also discussed the government’s efforts to boost Nigeria’s agricultural sector, which is facing rising inflation and food price increases. He noted that the government has set aside 120 billion naira to improve the availability of fertilisers for local farmers, with plans to produce 1.2 million metric tonnes of fertilisers next year.
“President Bola Ahmed Tinubu has made available 120 billion naira to increase raw materials for domestic fertiliser blending plants,” Yakubu said, highlighting the government’s focus on ensuring food security in the country.
He also mentioned that improved security has allowed more farmers to return to their lands, contributing to higher agricultural output.
However, Yakubu addressed concerns that food prices would remain high due to inflation. He attributed rising food prices to hoarding, predicting that as harvests increase and the naira stabilises, food prices will begin to drop.
“The harvest season is ongoing and the hoarders think that scarcity will prevail, so they are hoarding,” he said. “When they see that the currency itself is firming up and that there is tangible evidence that more food was produced this year than last year, it will be rational on their part to begin to empty their stores, and then we would see that prices are actually coming down.”
