The Nigeria National Resource Charter (NNRC), in a report, posits that Nigeria is fast losing its grip in the global oil market due to new oil hydrocarbon discoveries in other African nations.
The NNRC which is a body established to help governments and the society effectively harness opportunities created by their natural resource, made this postulation at the launch of an online extractive sector news outfit – Extractive360.com, in Abuja.
According to NNRC without appropriate reforms, the odds were heavily against Nigeria’s oil industry in the global oil market as the Oil and Gas sector in the nation is in dire need of reforms to enable the sector effectively support the Nigerian economy.
According to Tengi George Ikoli, the NNRC Programme Coordinator, Ghana, Tanzania, Cote d’Ivoire, Kenya, and Uganda are among the countries that have newly discovered oil. They have stronger offers that can reduce Nigeria’s competitive power in the sector.
She stated that, “There are indications that crude oil imports from Nigeria could be further threatened with the country’s highest oil buyer, India, signing an agreement to import 0.6 million barrels of oil from the United States. India was Nigeria’s top crude oil buyer in five of the last six years. More so, other countries like the United Kingdom are now importing more from the United States, impacting negatively on imports from Nigeria.”
According to her “This is also coupled with the presence of shale oil production which has brought a shift in the global oil scene, all these factors raise questions about the long-term structural implications as two world energy ‘revolutions’: shale as a new energy source of supply, and the gathering implications of clean energy transition on the demand side, including improvements in fuel efficiency and the rise of electricity as an alternative to oil in part of the transportation sector,”.
The NNRC Programme Coordinator advised that the global shift towards wind, solar, and other energy sources and the discovery of commercial quantities across the world is an obvious indication that a well-functioning energy sector that will bring with it a wider range of resources and technology, know-how, and capital is needed.