Sunday, August 02, 2020 / 1:15 PM / Taiyese
Nifemi for WebTV / Header Image Credit: WebTV
Experts in the Nigerian Oil and Gas sector have
called for increased investments in the infrastructure layout and framework in
the industry, and the mid-stream production levels to boost the sector.
This was part of the key takeaways from the recent
Nigeria-British Chamber of Commerce (NBCC) Oil and Gas Forum, organized as a
webinar through the virtual Zoom video conferencing platform.
Mr. Austin Avuru the CEO of Seplat Petroleum
Development Company Plc in his remarks emphasized the need for Nigeria as a
nation, to address the following challenges in the industry which include;
- Expanding Gas Production from Nigeria to feed the rest
of West Africa.
- Expanding Energy Transmission.
- Expanding Domestic Sub Region.
noted that in 2019 the oil and gas sector accounted for 47% of the original
budget & revenue of the nation, but stated that going forward there will be
lower prices for a much longer period, he noted.
the current COVID 19 pandemic outbreak, Avuru asserted that Nigeriaâ€™s economic
landscape has changed with Oil and Gas accounting for less than 45% of the
called for a paradigm shift post-pandemic in Nigeria which will see a robust
diversification in revenue dependency on the Oil & Gas sector.
to him “Oil and Gas rental revenue being almost the sole funding source for our
budget will have to stop”.
further he identified the following areas as key components that work needs to
be ramped up on, to enable gas production and consumption;
- Investment in Infrastructure in transportation for
- Infrastructure in delivering cleaner energy
- Investments in the infrastructure in delivering a
larger economic base and
- Creating a large tax base
believed that all these investments will in turn lift the economy, quality of
lives and GDP per Capita of the economy.
Austin Avuru made a strong case for a deeper level of regional integration in
stressed the fact that in identifying investment opportunities, the answer can
be found in addressing the question of how hydrocarbon can be tapped into and
deployed as an economic growth driver for West Africa.
Engineer Simbi K. Wabote, Executive Secretary Nigerian Content Development and
Monitoring Board, Mr. Akintunde Adelana Director, Monitoring and Evaluation
Nigerian Content Development and Monitoring Board gave insights into the “Current Global Developments, Implications for Investment, Local Opportunities
Adelana said Oil and Gas contribute 95% of foreign exchange in Nigeria and also
contribute 10% to the nation’s GDP, therefore anything that affects the sector
will impact the economy in the short and long run.
on the pandemic, Mr. Adelana identified a stretched
healthcare system, economic losses, fragmented global coalitions and low oil
prices regime as part of the adverse impacts on the global, regional and
the positive side, the NCDMB representative said COVID-19 has improved internet
service provider’s revenue, provided more patronage of e-commerce services,
companies remodelling their production lines to manufacture ventilators,
e-learning, local supply chain strengthening and sustaining productivity
through remote working/ cost-saving measures.
identified Duty of Care, Business Continuity and COVID-19 palliatives as key
areas the NCDMB explored in cushioning the effect of the pandemic to ensure
that business activities continue.
Osagie Okunbor Country Chair, Shell Companies in Nigeria & MD, Shell
Petroleum Development Company of Nigeria Ltd said the oil outlook looks
encouraging as the market starts to rebalance in the latter part of the year,
but was of the view that the risk still exists.
to him, FX revenues in the immediate short term will still have to come from
oil and gas. As a country, he stressed the need to remove waste from the cost
of production through rationalizing to get to comparable standards with the
rest of the world.
emphasized the need to manage the threat to national revenues through;
- Rationalization to manage OPEX,
- Re-phasing of capital expenditures and projects,
- Enable FDI by ensuring certainty and eliminating
obstructions to ease of doing business and also
- The need for the sanctity of contracts and frameworks
that support investments in Nigeria.
attract more investments into Nigeria, the security of assets is very important
to boost investor confidence as vandalization of pipeline infrastructure can
limit the supply of gas,” he said.
his opening remarks the President of the NBCC Mr. Kayode Falowo said with the
shifts in the world economic order, the Oil and Gas Group organized the webinar
as a forum to review the effect of the global economic disorder amidst the
pandemic outbreak of COVID19 as it relates to the Oil and Gas Industry.
Falowo acknowledged the fact that Nigeria is import-dependent on oil & gas
and as such has been greatly affected by global disruption.
made a strong case for efficient players in the oil sector, still have avenues
to thrive and further translate it to inclusive socio-economic growth for the
nation moving forward post-pandemic.
webinar’s focus is to better prepare the players in the ecosystem to ride the
turbulence, associated with the disruption in the oil and gas industry.
is import-dependent on oil and gas and as such been greatly affected by the
highlighted the fact that the knowledgeable and efficient players in the oil
sector, still have avenues to thrive and further translate it to inclusive
socio-economic growth for the nation moving forward post-pandemic.
noted that the oil and gas sector is a critical enabler of the Nigerian budget
and new opportunities can be found in the rising global demand for cleaner
sources of energy.
the pandemic outbreak of Covid19 digitalization of oil and gas is a new
imperative, which presents opportunities for technology firms in digitalizing
the sector,” he said.