In a recent statement during a ministerial press briefing in Abuja, Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, highlighted significant strides in Nigeria’s oil and gas sector. Thanks to new incentive frameworks introduced by President Bola Tinubu’s administration. The sector has garnered approximately $7 billion in investment pledges.
Edun emphasized that these investments, which had remained dormant for years, are now being mobilized. He emphasized this is due to the favorable economic conditions created by President Tinubu’s initiatives. Wale Edun underscored the role of these policies in driving prosperity and job creation, particularly pointing out the impact of CNG-fueled conversion programs.
The pivot to CNG, according to Edun, is not limited to vehicles but also extends to generators, reflecting the government’s commitment to promoting cleaner energy alternatives. Moreover, the introduction of new incentives in the oil and gas sector is expected to unlock significant investment potential. Edun’s position is to see a $7 billion to enter the market, alongside similar developments in other sectors.
This positive momentum stems from President Tinubu’s executive orders aimed at enhancing the investment environment and positioning Nigeria. The president foresight is to see Nigeria as preferred destination for oil and gas investments in Africa. By streamlining the contracting process and reducing cycle times. These initiatives seek to attract greater capital inflows and foster sectoral growth.
However, challenges persist, including insecurity, oil theft, and policy inconsistencies. This challenges have hindered capital investments in Nigeria’s oil and gas industry. The CEO of Total Energies, Patrick Pouyanne, recently highlighted these challenges, noting the company’s preference for investing in energy projects in Angola over Nigeria due to operational concerns.
Similarly, Shell Petroleum Development Company of Nigeria Limited (SPDC) and other International Oil Companies (IOCs) are reassessing their portfolios. Also, considering factors such as health, security, and environmental risks associated with operating in the Niger Delta region.
Sources : Nairametrics
