Otti pledges support to joint monitoring team on crude oil production

Alex Otti, governor of Abia State, has assured that his administration would give all the necessary support to tackle the drop in crude oil production in Nigeria.

Otti gave the assurance in his country home, Umuehim Nvosi, in Isiala Ngwa South Local Government Area, when he received in audience, a delegation of the Defence Headquarters Joint Monitoring Team, led by Jal Jimoh, a major general, who paid him a working visit.

Otti decried the drastic drop in crude oil production in Nigeria, which was part of his discussion in a recent visit to the National Security Adviser.

According to the governor, the numbers available to him between June and August 2024, put the average oil production level around 1.4 million barrels per day, which is below Nigeria’s crude oil quota of 2.2 million barrels per day.

“Around 20 years ago, I believe that was in 2005, our production capacity, not even the quota, was about 2.5 million barrels per day. So, the difference between 2.5 million barrels and 1.4 barrels also speaks of the challenges because if you are not exporting enough oil, you are not going to generate enough foreign currency to deal with all the issues that we have in the country,” said Otti.

He noted that because Nigeria’s economy is largely dependent on importation, the crisis in the foreign exchange market today could be tamed by a simple boost in the quantity of oil the country produces and exports, noting that it is a demand and supply situation.

“If supply is weak and demand is high, prices will keep going up,” Otti said.

He assured the team of the support of the state government in helping them to succeed in their assignment.

“We have everything that it takes, all the problems are man-made. So, I am fully in support of what you are doing and I will also encourage you to work with your colleagues to make a success out of this assignment,” he assured.

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Earlier in his speech, Jimoh said that the Joint Monitoring Team was recently constituted to carry out oversight on some of the most pressing challenges faced by the country’s vital crude oil sector.

“Our mandate is clear; to ensure robust monitoring and oversight across activities related to crude oil and gas extraction, transportation, and security within all the oil-producing areas of the country.”

He further said that their visit to Governor Otti was to acknowledge his invaluable support to the initiative, to underscore their commitment towards transparency and cooperative engagement with all stakeholders involved, and to assure the governor that no effort would be spared to restore optimal operational efficiency within the oil sector.

Other members of the team who accompanied Jimoh, on the visit, include Rear Admiral D. Fadeyi, Rear Admiral S.D. Ibrahim Air Vice Marshal Dari, Brigadier General A.A. Idris, Colonel M.M. Silong, Lieutenant Colonel M.J. Bent, Commissioner of Police Iyama Daniel, and Commandant Muhammed Waska.