Federal Government Forecasts Massive Investment in Nigerian Oil and Gas Sector
The Nigerian government has revealed plans to inject approximately $22.82 billion into 1,068 oil and gas projects approved between 2022 and 2023. These projects, spread across the country, signify a significant milestone for the sector, promising substantial economic gains and enhanced production capabilities.
The announcement was made during a panel session at the 7th Nigeria International Energy Summit in Abuja, focusing on Nigeria’s journey to maximise its oil production potential. Gbenga Komolafe, the Chief Executive Officer of Nigeria Upstream Petroleum Regulatory Commission (NUPRC), highlighted the nation’s technical capacity to produce 2.26 million barrels of crude oil per day.
Komolafe also outlined Nigeria’s strategy to align closely with the oil production quota set by the Organisation of Petroleum Exporting Countries (OPEC). He emphasised the country’s ongoing efforts and significant progress made in the oil sector, noting achievements such as the approval of 51 Field Development Plans expected to attract $17.64 billion in investment and deliver cumulative oil recovery of 2.12 billion barrels and gas recovery of 13.13 trillion cubic feet over the next five years.
Despite Nigeria’s actual oil production averaging 1.33 million barrels per day, Komolafe identified a gap between this figure and the nation’s technical potential, presenting an investment opportunity for investors to bolster revenue, bridge the foreign exchange gap, and enhance economic resilience.
He also mentioned the commission’s efforts to collaborate with International Oil Companies to expedite the development of high volume deep offshore assets. The Federal Government’s aim is to achieve a 214% surge in Petroleum Profit Tax (PPT) collections in 2024, with a target of N9.96 trillion compared to the N3.17 trillion generated in 2023.
To support this revenue target, the government has set an oil price benchmark of $77.96 per barrel for 2024, with a production estimate of 1.78 million barrels per day (mb/d). These measures indicate the government’s commitment to revitalising the oil sector and driving economic growth in Nigeria.
Nairametrics
