Energy
From The Report: Nigeria 2019
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With an abundant supply of natural resources, Nigeria’s oil and gas sector plays a key role in global energy. Its oil deposits have been a major source of crude for decades, while its less developed natural gas fields offer resources that have yet to be fully tapped. In addition to being a traditional heavyweight in terms of output, the energy sector is also notable for its early success in building local content in upstream activity. Policy moves over the past two decades have enabled young firms to acquire and develop oil and gas blocks, build pipelines and distribution networks, and, based on the current project pipeline, refineries as well. However, there is still room for improvement, Nigeria’s midstream infrastructure is lacking, and while this has held back overall development, it affects natural gas resources in particular. This chapter contains interviews with Emmanuel Ibe Kachikwu, Minister of State for Petroleum Resources; and Tunde Afolabi, Chairman and CEO, Amni International Petroleum Development Company.

Articles from this Chapter

Overview

Untapped resources: Despite minor setbacks, the private sector is helping Nigeria achieve its natural resources potential
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With an abundant supply of natural resources, Nigeria’s oil and gas sector plays a key role in global energy. Its oil deposits have been a major source of crude for decades, while its less developed natural gas fields offer resources that have yet to be fully tapped. In addition to being a traditional heavyweight in terms of output, the energy sector is also notable for its early success in building local content in upstream activity. Policy moves over the past two decades have enabled young firms…

Interview

Growth industry: Emmanuel Ibe Kachikwu, Minister of State for Petroleum Resources, on plans to expand the oil and gas sector
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Interview :Emmanuel Ibe Kachikwu How is the Petroleum Industry Governance Bill expected to impact the gas and oil sector, and what is the current status of the bill? EMMANUEL IBE KACHIKWU: The bill aims to define a framework for the governance of the petroleum industry by creating new institutions as well as modifying pre-existing institutions. President Muhammadu Buhari has declined to assent to the bill in its current form because of concerns about its fiscal impact, the powers of the minister…

Interview

Untapped potential: Tunde Afolabi, Chairman and CEO, Amni International Petroleum Development Company, on boosting local participation
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Interview :Tunde Afolabi What impact has the low cost of oil had on efficiency and cost-saving practices? TUNDE AFOLABI: The drop in oil price was a double-edged sword for the industry. With oil prices down, it became difficult to service debts and meet contracted obligations, and service providers realised that the only way they could stay in business was to keep operators in business also. As a result, we have been able to cut both operating and capital expenditures. As the banks’ perception…

Analysis

A new strategy: The government is working to boost refining capacity by involving private sector actors
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When President Muhammadu Buhari took office in 2015, he pledged to increase the country’s crude oil refining capacity, fix state facilities and put an end to expensive fuel imports. The effort to address refining is ongoing; however, as more businesses enter the market, progress on these issues could make private sector involvement a crucial factor, with a number of collaborative plans seeing progress on the issue. As of February 2017 there were already a handful of private sector refinery projects…

Analysis

A price to pay: Efforts to end public reliance on fuel subsidies
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As the only member of the Organisation of the Petroleum Exporting Countries reliant on imported fuels, Nigeria has long dealt with an expensive trade situation, which has soaked up finite foreign currency reserves and put pressure on the naira. Sector stakeholders have called for the full deregulation of petrol prices, arguing that removing subsidies would trigger investment and discourage wasteful use. However, lower fuel costs remain popular with the general public. Supporters of deregulation include…