Mohammed Shosanya
The Society of Energy Editors,says price hike in fuel could hit 300 percent in some states in 2024 compared to the same time last year.
The Society,in its third quarter outlook for Nigeria Energy Sector,attributed the development to the removal of subsidy which encouraged fuel to be sold at different prices across the country.
Fuel imports will remain high, putting pressure on foreign exchange reserves,while petroleum subsidy to remain a significant burden on government finances during the period,the group disclosed in a statement made available to Premium News on Saturday.
According to the group,refineries will operate at limited capacity due to unending maintenance and upgrades during the period.
The group expects increased oil production as new fields come online,will ongoing efforts to revamp existing fields will boost output in the country.
It said the management of the 2024 marginal fields bid round by the Nigeria Upstream Petroleum Regulatory Commission, NUPRC, to impact investor confidence.
It quoted the challenges as security issues in the Niger Delta, ongoing divestments by oil majors, lack of investments, decaying infrastructure, poor governance structure, and poor implementation of the Petroleum Industry Act, PIA.
Besides,gas production will increase as new projects come online in the coming quarter,while liquefied natural gas exports will remain strong, with Nigeria maintaining its position as a key global supplier.
The challenges are;gas infrastructure constraints, lack of investments and domestic supply shortfalls to persist.
According to the group,power generation will increase as new plants come online,adding that transmission and distribution infrastructure upgrades wok continue.
Funding shortfalls due to lack of investment coupled with grid stability issues are the challenges here.
The group said potential labour unrest in the downstream and upstream petroleum sectors in solidarity with organized labour regarding cost-of-living crises.
Electricity sector workers,the group quoted,may protest over unpaid wages and benefits,adding that workers are also poised to show solidarity with organized labour over cost-of-living crises.
Efforts to grow revenue generation from solid minerals to continue,and the newly launched mining marshals to curb the impact of artisanal mining,it quoted.
Th group noted that lack of clarity on government’s engagement strategy with potential investors will continue to impact investors’ appetite for mining portfolios.
It said,the challenges include;Insecurity, artisanal mining, regulatory framework gaps, poor state of road and rail network for evacuation of mined minerals.
It added,efforts to institutionalize the Host Community Development Fund for oil and gas producing communities will continue in line with implementation of the PIA.
It expects increased community engagement and development projects.
The Nigerian Content Development Monitoring Board to continue domiciliation efforts,the group said,adding that it expects increased local participation in the oil and gas industry.
According to the group,the management of the Nigerian Content Intervention Fund by the Bank of Industry could suffer constraints owing to political interference
It added that theNiger Delta Development Commission to continue development projects in the region.It expects increased focus on infrastructure development and job creation.
It said,efforts to restore oil spill impacted communities in Ogoniland to continue.It anticipates progress in cleanup and remediation activities.
It also said:”This outlook highlights the key trends and challenges expected in Nigeria’s energy sector during the third quarter of 2024. The sector is expected to experience growth and development, but also faces significant challenges that need to be addressed to ensure sustainable progress”.
