Economic analysts from the Centre for the Promotion of Private Enterprise and the Financial Derivatives Company has predicted development in GDP and downstream oil sector of the Nigerian economy, which will be catalyzed by the Dangote refinery.
The FDC and CPPE, revealed how the Dangote Refinery will initiate progressive growth particularly in the downstream oil sector in 2022. The FDI, after naming Dangote amongst the most profitable companies. Expect the refinery to increase Nigeria’s gross domestic product and transcend the African oil market.
The Dangote refinery, launching in the second quarter (Q2) of 2021, will be producing an average of 650,000 barrels per day (bpd) in Lagos state.
The CEO of Promotion of from the Centre for the Promotion of Private Enterprise, Dr Madu Yusuf stated the Dangote refinery launch alongside Petroleum Industry Act (PIA) in 2022 will definitely have a positive outlook in the economy.
“We expect to see positive outcomes as investor sentiments in the oil and gas sector improve on account of the reforms anchored on the PIA.
“This will however depend on the political will deployed to drive the implementation of the provisions of the Act. It is also expected that the coming on stream of the Dangote refinery in 2022 will also impact positively on the downstream sector of the economy,”.
Dr Yusuf, further explained energy demand resulting from increasing economic activities will affect crude oil’s prices, estimating benchmark price to eclipse $62 per barrel.
Concurrently, he highlighted the service sector will elapse real sector growth of Nigeria’s economy in 2022, emphasizing the impact and contribution it has made to the GDP level.
His words , “The service sector of the Nigerian economy will continue to outpace the real sector in 2022. In the third quarter of 2021, service sector contribution to GDP was 50 per cent and the growth of the sector was 8.41 per cent. Oil sector contribution to GDP was 7.5 per cent while the non-oil sector contribution was 92.5 per cent. While the industrial sector growth contracted by 1.63 per cent, agriculture grew by 1.2 per cent.”
Likewise, Dr. Yusuf stated Gross Domestic Product (GDP) growth will constantly experience economic shock. thus, retaining a frangible 3%. He indicated oil price recovery will be a key driver of growth
The analyst noted that despite the downside risks, the economy would continue to present huge opportunities for investors across all sectors.
“This is on account of the resourcefulness of the Nigerian people, especially the entrepreneurs. Other inherent strengths of the Nigerian economy include the market size, the population, and the demographic characteristics,” he added