Timipre Sylva, Minister of State for Petroleum Resources of Nigeria, will lead investment-focused dialogue during the Invest in African Energy Reception set to take place in London later this week.

He is expected to drive market-focused dialogue on why investing in Nigeria is so critical, both for the African economy and for the global energy market at large,a statement from Africa Energy Chamber,said.

He has made clear his commitment to securing new capital for a suite of large-scale projects across the entire energy value chain in Nigeria,the statement also said.

“The London event provides financiers and energy players with the unique opportunity to directly engage and connect with a leading government representative from the biggest oil producer in Africa, and the AEC is encouraging all of those interested in expanding their footprint in Africa to join us at this high-level event,” states NJ Ayuk, Executive Chairman of the AEC.

With the Nigerian energy market on the precipice of another transformation on the back of diversification and market-driven policy implementation, the participation of Minister Sylva is key for securing new capital for Nigeria’s rapidly growing market, while enabling new players and financiers to expand their footprint in one of Africa’s biggest oil producing countries.

Nigeria has emerged as one of the most attractive destinations for foreign investment owing largely to the signing into law of the Petroleum Industry Act in 2021.

With the Act having overhauled the country’s regulation and governance, addressing key growth inhibitors by prioritizing transparency, procedural clarity and attractive fiscal terms for regional and international players, the Nigerian energy market is more enabling for business than ever, and the Minister will showcase opportunities in the sector during the Invest in African Energy Reception in London.

The Act has already unlocked tangible benefits, with the country positioning itself as the biggest oil producer in Africa in 2023, despite a year of production declines owing to challenges associated with oil theft and reduced exploration.

With the state-owned company, the Nigerian National Petroleum Corporation identifying and shutting down an illegal pipeline responsible for the loss of up to 600,000 barrels per day (bpd) of crude oil, production has rapidly increased to approximately 1.2 million bpd in December 2022, setting the country up for an exciting year in 2023.

The country is more ambitious than ever when it comes to expanding the oil and gas market even further, with the government incentivizing Exploration and Production activity in a bid to boost production levels further. As such, opportunities for upstream players have opened up and Minister Sylva will be making a strong case for hydrocarbon exploration during the reception in London.

Opportunities in the oil industry, over 200 trillion cubic feet (tcf) of proven natural gas reserves – and opportunities to increase this figure to 600 tcf with advancements in exploration – have positioned the country as the destination of choice for financiers and project developers from across the natural gas landscape.

At a time when global markets are urgently seeking alternative gas supplies in light of ongoing supply constraints, Nigerian gas has emerged as a top solution, and investors are encouraged to capitalize on the opportunities present across this rapidly growing market.

But Nigeria’s oil and gas market opportunities transcend exports, with the country well-positioned to feed into regional supply chains.

Having signed a deal with Equatorial Guinea that would see Nigerian gas being processed at the country’s Punta Europa facilities while making steady progress to complete the Trans-Saharan Gas Pipeline and breaking ground of new project developments, Nigeria is opening new opportunities for electrification and industrialization in Africa on the back of intra-African gas trade, made possible through initiatives such as the African Continental Free Trade Agreement and the progressing Central African Pipeline System.

The National Association of Energy Correspondents (NAEC) has implored relevant federal government agencies to stop the current fuel scarcity in the country.

The association,in a statement regretted that the development has brought untold hardship to Nigerians and man-hour loss which should have been put into productive ventures uses.

While long queues persisted at stations now selling at N185 per litre in Lagos and other parts of Nigeria, the energy editors said,other marketers have started to take advantage of the situation, causing serious hardship to Nigerians and dislocation to the market through hoarding and profiteering.

Black marketers have been having a field day with fat bank accounts on at the detriment of poor Nigerians,according to the association.

It also noted that the Nigerian National Petroleum Company Limited’s stations and marketers, have hiked their pump prices for premium motor spirit (PMS), otherwise known as petrol, for the second time in less than sixty days.

The lowest price for the product is now N185 per litre from N175 per litre sold two months ago. The low-price band for the product, before this, was N165 per litre.

It lamented that most independent petroleum marketers’ retail outlets have adjusted their pump price to N290 to N300 per liter in tune with current market reality,adding the development portends grave implications for the already weakened purchasing power and income of the average Nigerian.

The association also regretted that high cost of petrol is impacting the daily cost of living as seen in transportation costs, energy costs as many homes continue to rely on alternative sources of power due to the poor supply from the grid as well as huge cost of goods and services.

It added:”Though marketers have attributed the present petrol queues across the country to exceptionally high demand and bottlenecks in the fuel distribution chain, it is however clear that the distribution value-chain is broken and worsened by a weak regulatory system.It is bad enough that there is no one to hold to account, it is worse that the government has jeopardised the interest of the masses for politics, considering that elections are near.

“We observe that the major arguments advanced by both government agencies and market players for the lingering fuel scarcity include logistics, price regulation and domestic energy subsidy. However, we also note that energy subsidy is a normal and effective economic growth stimulation strategy still employed by all developed countries of the world to tame the cost of production and guarantee the wellbeing of citizens. The subsidy system in Nigeria has been enmeshed in gross opacity”.

It commended that NNPCL should ensure a transparent subsidy system that will allow the supply figures and cost templates that provide basis for subsidy claims to be verifiable.

It suggested that all stakeholder groups should liaise with regulators to establish unassailable templates for subsidy management until the market is deregulated.
We therefore call on government to immediately liberalize petrol supplies in the country in line with best practices.

The association recommended that the Nigerian Midstream and Downstream Regulatory Authority (NMDRA), which is responsible for operations compliance and resource accountability need to rise to its duty by holding market players accountable for open books, fair play and equal opportunity.

It advised the NMDRA not to fail in providing a public dashboard on the supply flow in the domestic fuel market to allow public demand for accountable practice from players,adding that the development will clear the air of suspicion that the prevailing fuel market crisis is not a political undertaking by managers of the system to siphon funds for political objectives.

The association is calling on the regulatory agencies to perform their responsibilities rather than the buck-passing because Nigerians deserve an answer and look up to the media who are equally kept in the dark.

The association implored marketers, independent and majors, should also look inwards to fish out bad eggs among them, adding that their comments, action, and inactions should be guided by patriotism and humanity.

Commending NMDPRA on its strides,the association advised the authority to do more in ensuring stability in the market through proper pricing.