Nigeria’s oil and gas industry appear to be expanding, albeit not so fast opening more market opportunities.
The coming year is predicated to witness massive gas production and utilisation as the country is moving away from oil and exploring different ways to replace the oil consumption with gas in power and in transportation sector. Already, Nigeria is stuck with unwanted cargoes of crude oil and liquefied natural gas , as coronavirus takes its toll on the country’s biggest buyers.The use of renewables is rising fast and is gradually eating away the demand for oil. Soon the game will change and Nigeria should keep its eyes open. With new innovations, old industries die. Nigeria desperately needs to build an economy that is resilient to the volatility of oil and gas markets.
President Muhammadu Buhari seems to be responding to the reality on ground as he announced on October 8 in his 2021 budget proposal to the National Assembly of a lower output target and expected oil price benchmark for 2021, as the country braces for reduced revenues from its key industry. The Bill provides that the NNPC be replaced with a new limited liability company to be named Nigerian National Petroleum Company Limited; the creation of an upstream regulatory commission; and the establishment of a midstream and downstream regulatory authority.