2021: FX Stability Crucial to the Nigerian Oil and Gas Industry - Tominiyi Owolabi

Oil & Gas
1974 VIEWS
Proshare - Facebook Proshare - Twitter Proshare - Linked In Proshare - WhatsApp
Proshare

Monday, February 01, 2021 / 9:17AM / Ottoabasi Abasiekong for WebTV / Header Image Credit: Olaniwun Ajayi LP


Proshare Nigeria Pvt. Ltd.


The stability and predictability of the Nigerian foreign exchange market would prove critical to repositioning the oil and gas industry in 2021 said Dr. Tominiyi Owolabi,  Partner, Oil and Gas, Olaniwun Ajayi LP.

 

Owolabi said beyond the passage and signing of the petroleum industry bill (PIB), Nigeria needs to build an environment that encourages investments and capital inflows. According to Owolabi entrenching the ease of doing business in the PIB, which covers the award of permits and licenses, would make Nigeria a globally competitive market.

 

Speaking further on the PIB, he said no law was perfect, which is why legislations go through periodic reviews. He called for a speedy passage and signing of the bill, which would help the country unlock trapped value within the sector.

 

Concerning the contentious issues of the "host community equity" contained in the PIB,  he made a strong case for effective administration and full implementation of the bill.

 

Owolabi identified stronger gas infrastructure as critical to the industry in 2021 and acknowledged the National Gas Expansion Programme (NGEP) of the Federal Government would feed into the changing global dynamics of the energy business.

 

"The LNG Train 7 project is a boost to the local content activities in the Oil and Gas industry, with opportunities for job creation and skills development for the economy," he said.

 

YTD Price Movement (Jan 4th - Jan 27th )

 

Proshare Nigeria Pvt. Ltd.

Source: Bloomberg, Proshare


On American President Joe Biden's focus on climate protection, renewable energy, and the green deal initiative. He said it signalled a shift in policy support for the industry.

 

Some of the  issues in the policies of the Biden administration which he believed would change the industry landscape include;

  • Tax benefit cuts for the Oil and Gas companies
  • Overhaul of the regulations on investments in the industry
  • Regulations on exploration in the country


Related Video

Proshare Nigeria Pvt. Ltd.


Proshare Nigeria Pvt. Ltd.


Related News 

1.       New Vaccine Hopes Boost Oil Prices - OIR 260121

2.      Inside Nigeria's 2020 Petroleum Industry Bill

3.      The PIB: Matters Arising

4.      OPEC and OPECplus Take a Jump on Oil Prices as COVID-19 Cases Worsen

5.      Oil Price Rally Paused By Chinese COVID Concerns - OIR 260121

6.      PIB Will Ensure Nigerians Benefit Optimally from Oil and Gas Resources - Ahmed Lawan

7.      Energy Shares Plunge as Oil Rally Halts - OIR 220121

8.     FG Inaugurates the National Oil and Gas Excellence Centre

9.      Oil Demand Fears Continue to Weigh on Markets - OIR 190121

10.  Low Level of Supply of Liquefied Petroleum Gas Responsible for Price Increase

 

Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

READ MORE:
Related News
SCROLL TO TOP