Page 14 - Nigeriaone mag 3 edition en

Several factors have contributed to the decline of oil
production in Nigeria: divestments, lower capital
expenditure, theft, and vandalism. These ongoing
issues have prevented a full recovery of the energy
sector. There has been an outbreak of oil theft, and
pipeline vandalism in many parts of Nigeria,
especially in the Niger Delta. Terminal Bonny, which
is supposed to receive 200,000 barrels of crude daily,
reportedly only receives 3,000 barrels. This
unfortunate situation has led Shell to divest its
operations from Nigeria. As a result of a series of oil
thefts and pipeline vandalism, President Buhari
instructed his Minister for Petroleum Resources,
Chief Timipre Sylva, the MD of the Nigerian National
Petroleum Company Limited (NNPC), Mele Kyari, and
the Chief of Defense Staff, General Lucky Irabor to
eliminate the alarming rate of crude oil thefts in the
country. The Nigerian government has pledged to
severely crack down on oil theft and bunkering
perpetrators. Chief Timipre Sylva, the Minister for
Petroleum Resources outlined three elements as a
potential solution to this ongoing crisis. His proposal
called for active participation by the communities, law
enforcement, and operating companies. He stated:
“All the elements are complete now, we are here as
government, the operating companies are here and of
course, we are going to the communities. So, I believe
that finally this problem will be resolved.”
Terminal Bonny

Currently, the Ukraine/Russia crisis is causing an
energy crisis of unprecedented proportions. The
European leaders are actively seeking alternatives to
Russian energy. They are encouraging their African
counterparts to increase their oil output. Taking
advantage of this situation will allow Nigeria to
leverage its oil and gas potential. However, the
country needs to be more attractive to get more
foreign investments. Between 2012 and 2022, over $70
billion worth of foreign investments were deployed in
Africa. Nigeria received only $3.5 billion of that
amount. Other African countries are benefiting from
these investments eluding Nigeria. Mozambique
received $4.7 billion, Djibouti $4 billion, and Tanzania
received $30 billion in investments. With significant
foreign investment in the energy sector and a
solution to oil theft and vandalism, Nigeria will be
able to restore oil production at the optimal level,
earning substantial foreign exchange and resulting in
Lagos, Nigeria economic growth.

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