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Uncertainties, security, others may affect Nigeria’s oil sector

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Players in the Nigerian oil and gas sector say that the industry particularly upstream will be affected by policy uncertainties, security, and a slump in the price of crude oil.

The players in an outlook recently said the non-passage of the Petroleum Industry Government Bill would affect the growth of the sector.

They warned politicians to desist from comments that could further reduce investment inflow into the sector according to the Guardian.

The players are not alone on this as the Nigerian National Petroleum Corporation had earlier warned against politicians using the corporation to canvass votes stressing that it will endanger investment inflows.

The players are not alone on this as the Nigerian National Petroleum Corporation had earlier warned against politicians using the corporation to canvass votes stressing that it will endanger investment inflows.

The Foreign Direct Investment (FDI) in Nigeria’s oil sector dropped by $17.12 million in the third quarter (Q3) of 2018 from $24.85 million in Q2 as disclosed by the Nigerian Natural Resource Charter (NNRC)

Also, the Executive Director, Institute for Oil, Gas, Energy, Environment and Suitability (OGEES), Prof. Damilola Olawuyi, predicted an uncertain outlook for Q1 2019, given the triple challenges of policy uncertainties, security challenges, and slump in crude price at the international oil market.

Partner, Odujinrin and Adefulu, Adeoye Adefulu, said that the government must take steps to attract new investments.

Another stakeholder, Managing Director, International Energy Services Limited, Dr. Diran Fawibe said that there will be a temporary slow down in investment stressing the need to for the country to maintain political stability.

Chief Executive Officer, Footprint to Africa, Osita Oparaugo, said until political instability is addressed, investors may no longer come into Nigeria on a long-term basis until the elections were over, while the existing ones are pulling out.

Source Guardian
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