Royal Dutch oil giant, Shell, has called for the review of fiscal environment in Nigeria in order to attract more investment into the country.
Speaking at the Nigerian Oil and Gas (NOG) conference in Abuja recently, Vice President, Nigeria and Gabon, Shell Exploration and Production Africa, Markus Droll, stated that “the current oil price is obvious evidence that the economic environment around us is volatile.
With plummeting oil prices and rising costs, we need to review the fiscal environment in order to maintain an attractive investment climate for all stakeholders in the industry.
“Fiscal stability and predictability remain even more crucial today in ensuring investors of all sizes can commit confidently, government revenues can be forecasted reliably and a capable service industry is maintained with a steady workload.
“If we succeed in this, I am confident Nigeria would be able to attract as much capital as is needed. Not just in the oil industry, but across the board. If we fail, then, I fear investment could dry up fast with production levels declining shortly afterwards”.
The Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Joseph Dawah, however, harped on diversification of the national economy, noting that other areas such as; agro-industrial, mining-related products and petrochemical industrial products among others could contribute largely to the national purse if adequately harnessed.
Dawah also called for liberalization of the downstream petroleum sector, adding that the NNPC has strategized to reviving the refineries and make Nigeria a net exporter of refined products by the year 2020.
He noted that diversification from oil to gas is also crucial, as the country is set to tap into the environmental potentials that gas offers in its quest to drive the economy.
“If the last 50 years is regarded as the oil age, then the next 50 years will be age of gas,” he said.
However, the Group Chief Executive Officer, Oando Plc, Wale Tinubu said there was the need to bring a renewed perspective to the way and manner the oil and gas sector will be managed.
He, however, cautioned the industry about continuous downsizing, which he said may lead to increased vandalism and oil theft in the industry.
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