The Nigerian Content Development and Monitoring Board, NCDMB, has hinged the lack of capital investments on hydrocarbon development projects as the bane of oil-producing countries such as Nigeria.
This Executive Secretary of NCDMB, Mr Simbi Wabote, said at the 9th Anniversary Lecture and Investiture into the Realnews Hall of Fame, last week in Lagos.
Nigeria’s rig count (a measure of exploration and production activities) dropped significantly by 38.5 per cent to 75 in the first 10 months of 2021, an indication of less investment in the sector.
However, Wabote, in his keynote address maintained that fossil fuel remains a very significant part of the energy mix required for industrializing the continent.
He stated: “Revenues obtained from the sale of the hydrocarbon resources would remain “key drivers of the economies of the African oil and gas producing countries”.
“The pullback of investments on hydrocarbon development projects is indeed a challenge for oil-producing countries such as Nigeria.
“The key areas of focus that could be used to address this challenge included the collaborative platform provided by the African Continental Free Trade Area, AFCFTA, to provide funding and the technology required to operate and develop hydrocarbon projects.
“The second is to have in place an investment-friendly law such as the Petroleum Industry Act (PIA) 2021.
This will come in handy to attract much-needed funds for project developments when the effect of the premature halting of new hydrocarbon projects lead to supply shortages with attendant unbearable price hikes.”
