Maximising Nigeria’s huge potential oil and gas sector

Experts have suggested ways that Nigeria’s oil and gas sector could maximise its huge potential at the week-long Nigerian International Petroleum Summit-An African Petroleum Technology and Business Conference (APTC) held last week in Abuja.

Don Obot Etibet, former minister of state for petroleum at the 2018 Nigeria International Summit explained that Nigeria oil and gas sector has for long been held down by politics, nepotism, corruption, and a host of others so much so that the industry grew around friendship, relationship and proxies and these led to doing things without following due processes. What should have been done properly was not done and it led to control by the government which needed someone to resist it.

“What should have been done properly were not done and it led to control by the government”, Etibet said.

Alex Neyin, Managing Director, GACMORK Nigeria Limited stressed that one of the things worth noting from the past is the instability of price which threatened the integrity of the management of the industry, identifying that Low oil price is a lesson to Nigeria and we must sustain the low price knowing that when prices are low profit will increase.

Markson Fefegha, Commissioner of Mineral Resources, Bayelsa explained that with the recent crisis led by the Niger delta youths which resulted to the destruction of pipelines and losses, it is worth noting that the fiscal policy is not effective at the indigenous places where oil production are carried out.

“There is therefore need for the development of a federal fiscal policy that will regulate the operations of both the state and federal players in the industry. When regulations are not properly communicated to the people in a way that it will benefit them, there is bound to bound to problems”, said Fefegha

Oluwo Wale, commissioner for energy and mineral resources, Lagos explained that tackling the challenges of the industry, the State has embarked on reforms of the gas and power sector as the need power cannot be generated without gas.

Moving forward, Wale opined that there is need for collaboration between the state and federal government to enhance effective policy and regulation in the industry.

“In Lagos what we did was to embark on reforms for the power and gas sector, noting that we cannot generate the needed power without gas, so what the Lagos state governor has done is to put together the energy program aimed at achieving a 3000 mega-watt of electricity within the next 3-5 years”.

However, the minister of petroleum, Ibe Kachikwu looking at the future identified the present challenges of the sector to include ineffective regulatory system, lack of transparency in operations, insecurity, cost of operation and policies yet to be implemented.

Speaking on these challenges, the minister said that there is need to re-evaluate the regulations governing the activities of the sector to make it attractive for investment stressing that there are some policies that are yet to be implemented.

On security, the minister said that the government has put measures in place to address the insecurity issues faced in Niger delta explaining that measure has been put place to incorporate them into the oil sector initiative and the Nigeria economy as a whole.

Experts also showed concern at the level of transparency with data in the industry noting that it is a major contributor to price fluctuation.

Odulaja Dapo, Head, Data Service Department, Research Division OPEC, explained that Non-transparency with data in the energy industry is a major contributor to price fluctuation in the country.

“The industry has gone through cycles of price fluctuation and this is not convenient for the producers and consumers alike. There is need to promote more data collection as the industry is becoming data intensive”.

According to him, Africa should not be left behind in the contribution to data gathering initiative that was recently launched by OPEC and others adding that the initiative is being embraced by more countries but only few contribution from the Africa countries.

CYNTHIA EGBOBOH,  Abuja.