How transparency can attract new investments into Nigeria’s oil, gas sector
By Abimbola Abdullahi
Transparency in the governance framework of the Nigeria’s oil and gas industry, will attract more significant investments into the nation’s economy. Director, Oil and Gas Practice, Mr. Chukwuemeka Osuji has said.
Osuji said this while giving his views on “Nigeria and the Quest for Accountability in the Petroleum Industry”.
He acknowledged the fact that the Petroleum Industry Act (PIA) has the framework to achieve stability in the sector, but noted that implementation of the provisions in the act would require political will.
The expert believed it was time for the leaders in the industry to approach Oil and Gas, as a business exploring how it can achieve productivity and profitability in a globally competitive environment.
He said investors like clarity and proper signaling and these are areas Nigeria must improve upon to see more partnerships, groundbreaking deals and activities in the sector.
Speaking further he called on the government to periodically engage the operators, with emphasis on improving the business environment for them to carry out their activities.
Assessing the developments around the petroleum subsidy regime extension by the government for another 18 months, he noted that the FG felt the need for broader consultations with key stakeholders, which would come with necessary amendments to the PIA provisions covering the deregulation of the industry.
Osuji was of the opinion that further amendments to the PIA, should empower the Petroleum Minister to determine the timeline for the subsidy removal.
According to him other critical issues that would be of concern are the pricing mechanism for the full implementation of the subsidy removal.
He noted that postponement of subsidy removal was a relief to citizens who were already adversely affected by rising inflation and currency devaluation.
On economic opportunities, he described the Dangote Petrochemical Refinery project to be commissioned by Q3, 2022 as an industry gamechanger, as it would reduce the importation of petroleum products.
Speaking on local content development in the oil and gas industry, he commended the National Content Development Monitoring Board (NCDMB) for its strides in capacity building for indigenous operators.
He highlighted projects like the EGINA FPSO which had 60% local content and the NLNG train 7 project with 50% local input as part of the initiatives that NCDMB has supported.
