Business
Nigeria planning huge overhaul of oil and gas industry
Oil Refinery in Port Harcourt, Nigeria. PHOTO/File
It is hoped that the new reforms will increase oil revenues for Nigeria, drastically reduce on corruption in the petroleum industry and improve on the quality of life of Nigerians.
Nigeria has launched a renewed bid to implement reforms that will overhaul and drastically improve the oil and gas industry. There is optimism that this time it may be successful, though various obstacles could derail the process.
Nigeria President Goodluck Jonathan last month sent a fresh version of sweeping legislation to parliament that would set out new fiscal terms for the industry and restructure the state oil company, among other measures.
The implications of the 223-page bill are immense in the OPEC (Organization of the Petroleum Exporting Countries) member country that relies on the industry for some 80 percent of government revenue and where major firms like Shell, Exxon and Total pump crude for export.
“I think something’s going to get passed before the end of the year,” said Mr Kayode Akindele of 46 Parallels investment firm.
“That’s really out of necessity … because we just can’t have the situation we’ve had the last four or five years.”
But a number of battles must still play out.
Major firms argue that the fiscal terms are too harsh, there are concerns over powers granted to the oil minister, and a political tussle is expected over a fund for oil-producing communities.
