Energy
From The Report: Nigeria 2022
View in Online Reader

Nigeria is Africa’s top oil producer and possesses the largest proven gas reserves on the continent, making it a key player in the global energy market. However, despite its wealth of resources, the country has been unable to meet domestic demand and has one of the lowest net electricity generation rates per capita in the world. The pandemic aggravated this trend, as 2020 saw a steady decline in global demand for petroleum products. However, optimism for an improved macroeconomic environment in 2021 bodes well for investment in the energy sector, with growing opportunities in the nascent renewables segment as the country looks to expand electricity access to underserved communities.

This chapter contains an interview with Mele Kolo Kyari, Group Managing Director of the Nigerian National Petroleum Corporation.

Articles from this Chapter

Overview

New priorities: Attention turns from crude oil operations to developing the country’s refining and natural gas infrastructure
OBG
plus

Nigeria is Africa’s top oil producer and possesses the largest proven gas reserves on the continent, making it a key player in the global energy market. However, despite its wealth of resources, the country is unable to meet domestic demand and has one of the lowest net electricity generation rates per capita in the world. The nationwide electrification rate stood at nearly 60% in 2020, while 39% of the rural population had access to electricity. The country relies on fuel imports – the result…

Analysis

Landmark legislation: The passage of a long-stalled bill opens the door to sweeping regulatory and fiscal changes in the oil industry
OBG
plus

In late September 2020 President Muhammadu Buhari submitted the Petroleum Industry Act (PIA) to the National Assembly, breathing new life into the stalled legislation. Both chambers of Parliament passed the then-bill on July 1, 2021, and it was signed into law the following month. The PIA aims to overhaul the oil industry, focusing on its organisational structure and fiscal terms, with an eye to increasing transparency and stimulating growth. It also created the Upstream Regulatory Commission, and…

Interview

Fuel for growth: Mele Kolo Kyari, Group Managing Director, Nigerian National Petroleum Corporation (NNPC), on diversifying operations to meet demand for cleaner sources of power
OBG
plus

Interview: Mele Kolo Kyari What was the impact of the Covid-19 pandemic on oil and gas production in Nigeria? MELE KOLO KYARI: Before assessing the effects of the pandemic, it is necessary to consider the state of the industry in the years leading up to the health crisis. Even before 2020, the country’s energy sector was going through a transition. There was more of an emphasis on green and sustainable sources of energy, especially in light of conversations on how to reduce the industry’s carbon…

Analysis

Green light: As global demand for hydrocarbons dropped in 2020, the shift towards sustainable energy intensified
OBG
plus

The year 2020 was a dramatic one for the global energy sector, with the Covid-19 pandemic slashing demand for hydrocarbons and upending market norms. Seeing that investment in oil took a hit while renewable energy remained resilient, some stakeholders expect the pandemic to result in a permanent realignment of the international energy market. Oil Crisis The energy sector was dramatically affected by the outbreak of Covid-19, as a sharp contraction in demand due travel restrictions, government-imposed…