Nigeria’s oil and gas sector, although facing declining fortunes, continues to offer investment opportunities driven by government reforms and global oil market dynamics.
This was made known by the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB) Engr. Simbi Wabote, during the fourth Nigerian Oil and Gas Opportunity Fair (NOGOF) in Bayelsa State, with the theme: “Oil & Gas Industry – Catalyst and Fuel for the Industrialization of Nigeria.”
Engr. Wabote highlighted five key areas ripe for investor participation: Policy Driven Opportunities, People Driven Opportunities, Fund Driven Opportunities, Infrastructure Driven Opportunities, and Situational Opportunities.
According to him, “Government policies such as the Decade of Gas declaration and the automotive gas policy have stimulated the development and utilization of gas resources, leading to increased domestic consumption.
“For instance, annual LPG consumption rose from 360,000 tonnes in 2015 to 1.4 million tonnes in 2022. However, there are still opportunities in local processing, storage depots, trucking, cylinders manufacturing, distribution pipelines, and conversion kits to meet the target of 4 million tonnes by 2025.”
The local content boss went on to note that “initiatives like the Nigerian Gas Flare Commercialization Program, the Petroleum Industry Act (PIA) 2021, the African Continental Free Trade Area (AfCFTA), and the Nigerian Oil and Gas Industry Content Development Act create favourable conditions for investors.”
While noting that the NOGICD Act prioritizes Nigerian goods and services in project implementation, Engr. Wabote stressed the need for expertise to capitalize on these policies, noting that “there are huge opportunities for individuals and businesses willing to develop the skill sets required to offer regulatory compliance support services to operators and service companies.”
Regarding financing opportunities, Engr. Wabote highlighted “intervention funds like the $300 million Nigerian Content Intervention Fund and the $50 million Nigerian Content R&D Fund, benefiting over 70 companies.
“The forensic audit of remittances into the Nigerian Content Development Fund also created opportunities for audit companies.
“In addition to the Nigerian Content Intervention Funding, various funds from organizations such as NDDC, NIMASA, BOI, AFDB, NASENI, and AFREXIM Bank are available for operators.”
The local content chieftain went on to note that, there are opportunities arising from President Buhari’s focus on infrastructure development, including railways, roads, bridges, airports, defense, power, and solar energy parks.
According to him, the capacities and capabilities developed in the oil and gas industry can be deployed in the aforementioned sectors.
The NCDMB boss added that Industrial parks like the Nigerian Oil and Gas Park Scheme (NOGaPS) in Odukpani and Emeyal-1 are at advanced stages of completion and provide opportunities in manufacturing, logistics, security, facilities management, training, and occupational health services.
Speaking on infrastructure-driven opportunities, Engr. Wabote said “the Board has commenced the front-end design of the Brass Island Shipyard Project,” adding that “the project will enhance the nation’s shipbuilding and maintenance capacity by facilitating in-country maintenance and repairs of LNG vessels, oil tankers, container ships, jack-ups, and other vessels.”
Engr. Wabote also anticipated increased vessel traffic with the operationalization of the Lekki Deep Seaport, making facilities like the Brass Island Shipyard crucial for maintenance and repairs.
He went on to note that global energy demands present significant opportunities, as witnessed during Germany’s need to restart coal power plants due to supply disruptions occasioned by the Russia-Ukraine war.
“Closer home, the situation we found ourselves as regards the provision of energy in various forms to power economic activities provides huge opportunities.
“These opportunities include industries switching from diesel to petrol, LPG, CNG, and electric power, the demand is huge, to improve operations and maintain profitability.”
He pointed to the Presidential Power Initiative, the Decade of Gas program, and the Dangote Refinery as significant opportunities in the sector.
Others include the Presidential Power Initiative with Siemens, which provides a roadmap to ramp power to 25,000MW stable electricity, as well as new oil and gas projects including the IKEKE field.
