The passage of the Electricity Act 2023, followed by its amendment via the 2024 Amendment Bill, signifies significant progress in the Nigerian Electricity Supply Industry .Olufemi Idowu is a Partner at Kreston Pedabo. In this interview with KINGSLEY JEREMIAH, he speaks on the bottlenecks in Nigeria’s oil and gas and electricity industry, especially the new electricity act, divestment by international oil companies; Nigeria’s declining oil production alongside the fate of the 2024 budget.
Regarding the increased involvement of states in the electricity value chain, this development represents an intriguing departure not only due to the expected enhancement in service provision to Nigerians but also because it signifies the longstanding call for the country’s restructuring. The potential for growth, employment generation, economic amelioration, and more is genuinely promising.
For instance, we specialise in providing strategic advisory services to energy companies, governmental bodies, and other stakeholders in the sector. These services involve a wide range of areas, including financial management, risk assessment, regulatory compliance, and strategic planning, all aimed at optimizing operational efficiency and maximizing investment returns in the energy sector.
The 2024 Appropriation Act estimates aggregate revenue of approximately N18.32 trillion. Given this projection, oil revenue is anticipated to reach N7.94 trillion, while non-oil and independent & other sources are expected to contribute N3.52 trillion and N6.86 trillion respectively. Interestingly, the forecast for oil revenue is contingent upon achieving a daily oil production of 1.78 million barrels per day. Therefore, the current reality of our oil production, which currently stands at 1.
The divestment by Shell, ExxonMobil, and Eni in Nigeria’s oil and gas industry has indeed raised concerns, especially regarding the delays in government approvals and the impact on production capacity. While the government has promised to address these issues to stimulate sustainable growth in the sector, the process has been slow, leading to setbacks in development.
In as much as the divestment by multinational companies in recent months has sparked controversy, I am of the opinion that it still presents opportunities for Nigeria’s independent oil companies to play a pivotal role in the country’s oil and gas sector. Many Nigerian independent companies have cultivated significant expertise and experience in exploration, production, and asset management.
Source: News Formal (newsformal.com)