Africa: PIB – How Nigeria Attracted Only 4% of $75bn Africa’s Oil, Gas Investment in 4 Years

by Nwafor

Despite its huge oil reserves, Nigeria attracted only four percent of Africa’s $75 billion oil and gas investment in four years (2015-2019) because of the delay in the passage of the nation’s Petroleum Industry Bill, PIB into law, according to Lagos Chamber of Commerce and Industry, LCCI.

Director General, LCCI, Dr Muda Yusuf, in a statement, weekend, said : “The oil and gas industry is a major contributor to the Nigerian economy and government revenue. Nigeria, with the largest oil and gas reserves in Africa, has huge untapped potential to achieve its economic development goals including gas-to-power ambitions. However, despite having the largest reserves in Africa, Nigeria only received four percent ($3 billion) of $75 billion invested in the continent between 2015-19. This underscores the need to create a competitive environment to attract investment to the oil and gas sector.

“The fundamental shift in global energy markets driven by advances in unlocking unconventional petroleum resources and increasing traction for cleaner energy sources has resulted in a global oversupply of crude oil, putting pressure on prices. This has been further worsened by the Covid-19 pandemic, potentially putting at risk the viability of ongoing and future projects and driving fierce competition for scarce investments around the world.

“Further to the above, Nigeria’s petroleum industry faces many country-specific challenges, including Joint Venture Funding and Arrears, regulatory overlaps, insecurity and inadequate infrastructure for domestic gas development.