The Nigerian gas and oil market is the main income for that government and it has a business worth of about $20 billion. It’s Nigeria’s primary supply of export and foreign currency earnings as well as a significant employer of work. A mix of the crash in oil cost to below $50 per barrel and publish-election restiveness in Nigeria’s Niger-Delta region led to the promise of pressure majeure by many people worldwide oil companies (IOC) operating in Nigeria. The promise of pressure majeure led to shutdown of operations, abandonment or selling of interests in oil fields and lounging from staff by foreign and indigenous oil companies. Even though the above occurrences led to the drag in the market, possibly, the main cause may be the unfruitful existence of the us government of Nigeria (FGN) because the dominant player in the market (owning about 55 to 60 % curiosity about the OMLs).
While, it’s unfortunate that lots of IOC’s playing in the market divested their interests in oil mining leases (OMLs) and oil prospecting leases (OPLs) granted for them through the FGN around the switch side, it’s a positive development that indigenous companies acquired the divested interests within the affected OMLs and OPLs. Hence, domestic investors and firms (Nigerians) are in possession of the chance and significant role to participate in the sustainable progression of Nigerian gas and oil industry.
This paper x-sun rays the roles expected of Nigerians and also the extent they have effectively discharged same. Additionally, it compares the challenges which are inhibiting the sustainable development of the profession. This paper finds the chief factor restricting domestic investors from efficiently playing their role within the sustainable development of the profession may be the overbearing existence of the FGN in the market and it is lack of ability to fulfil its obligations like a dominant player in the market.
In part one, this paper discusses the roles of domestic investors, as well as in the 2nd part, this paper looks at the challenges and factors that hinder domestic investors in sustainably performing the identified roles.
The Function OF DOMESTIC INVESTORS/COMPANIES
The roles domestic investors play to promote sustainable rise in the gas and oil industry include:
Enhancing Personnel and Technical Capacity Development
Promoting Technological Capacity and Transfer
Supporting Development and research
Supplying Risk Insurance
Gas and oil projects and services are capital intensive. Hence, financial capacity is important they are driving growth in the market. Because of the elevated participation of domestic investors in Nigeria’s gas and oil industry, naturally, they’ve been saddled using the responsibility to supply the main city needed they are driving industry growth.