Energy

Still Africa’s largest oil producer, with an industry that in past decades has fuelled the growth of what is now its largest economy, Nigeria has the biggest reserves on the continent. Local operators are expanding their share of production, while domestic services companies are boosting capacity to meet local content requirements. Yet the sector faces steep challenges, from policy uncertainty amid looming legislative reform to output disruptions due to unrest in the Niger Delta, the heart of its producing region. These obstacles have only been exacerbated by falling crude prices, which halved in the second half of 2014. Although oil has traditionally dominated Nigeria’s production mix, natural gas looks set to gain more ground in the coming years, thanks largely to the forecast increase in demand from the recently privatised electricity sector and investments by state-owned Nigerian National Petroleum Corporation (NNPC) in gas aggregation and transport infrastructure, which are strengthening supply links to power plants.

This chapter contains interviews with George Osahon, Director, Department of Petroleum Resources (DPR); Ernest Nwapa, Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB); and Adewale Tinubu, Group CEO, Oando.