Are Declines in Nigerian Oil and Gas Investments Reversible?

The founder of the charitable KBS Foundation, businessman Kashim Bukar Shettima also leads Barbedos Oil and Gas Services Limited, a subsidiary of the Barbedos Group. Wholly Nigerian-owned, Kashim Bukar Shettima’s energy company relies on the health of the greater Nigerian oil and gas industry for its profitability.

In recent years, a number of factors have contributed to a decline in foreign investment in the Nigerian oil and gas industry, despite the country’s rich resource potential. Several reasons for this were noted among the findings of a forum of the Society of Petroleum Engineers (SPE) concluded in early September in Aberdeen, Scotland. According to the SPE, the main concerns discouraging companies from investing in Nigeria include poor security, inconsistent government policy, and underdeveloped infrastructure, as well as the excessive cost of operations in Nigeria as compared to other African countries.

At the forum, the Nigerian Content Development and Monitory Board noted that the government is committed to assisting companies that are willing to domesticate certain production capabilities in Nigeria, with the intention of energizing local economies and building up the requisite infrastructure. Additionally, the government has encouraged oil companies to provide internship and training opportunities and to promote research and development programs at Nigerian universities.

With improved cooperation between foreign investors, domestic companies, and the Nigerian government, the vast oil and gas reserves beneath Nigeria could be efficiently and safely exploited for the benefit of all.

Advertisements