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Nigeria May Lose $24bn Oil, Gas Investments In Six Years, AEC Alerts

Nigeria will lose $24billion in investments in the oil and gas sector between 2020 and 2025, due to effects of the Covid-19 pandemic on the global petroleum industry, according to a report published by the African Energy Chamber (AEC).
The AEC, in its African Energy Outlook 2021, obtained weekend, disclosed that with the $24billion loss of investments in the oil and gas sector, Nigeria would account for 30 per cent of the total of $80billion loss of investments that would be recorded in the petroleum industry across Africa.
The AEC said: “The detrimental impact of Covid-19 on global energy markets is also expected to have an impact on African activity. Compared to pre-Covid-19 expectation, about $80billion less investments are expected in Africa towards 2025, with the years 2020 to 2022 carrying the brunt of the difference.
“Out of these $80billions, Nigeria is by far the most adverse impacted country with about $24billion moving out of the 2020-2025 window.”
The AEC further projected a delay in the Nigerian Liquefied Natural Gas (NLNG) Train 7 project, as well as other gas projects in the country, occasioned by the pandemic, which had also negatively impacted the price and demand of crude oil in the international market.
According to the chamber, upcoming gas projects would take a hit and run a risk of delays, while it noted that some oil majors operating in the country had already started shifting the timelines for their gas projects.
It said: “The majority of the projects in Africa that were up for sanctioning were planned assuming an oil price of between $55 and $60 per barrel, bbl. The oil price currently hovering around $40/bbl therefore spells bad news, especially as the top upcoming Final Investment Decisions, FID, in Africa have a breakeven crude price of over $45/bbl, with some even close to $60/bbl.
“ENI and ExxonMobil have both stated that they will focus on developing projects with a breakeven crude price of less than $35/bbl.
“In its latest announcement, Shell distanced itself from deep-water mega-projects off the coast of Nigeria, placing the Bonga Southwest-Aparo, a 150,000 barrels of oil per day, bpd, Floating, Production, Storage and Offloading (FPSO) development that was soon coming up for FID, on the backburner for now.
“Upcoming gas projects will also take a hit and run a risk of delays. Although Nigeria approved the development of NLNG train 7 last year, the upstream gas developments that were planned to supply feedgas to this development might now take a back seat.”
However, the AEC projected that at a higher crude oil price of $50 per barrel, and additional investments of up to $10billion, Nigeria would be able to produce a total of two billion barrels of crude oil between 2020 and 2030.
The chamber said: “With an additional capital expenditure of $10billion in investment over the 2020-2030 period, the additional capital expenditure is estimated at $49billion at the $35/bbl threshold increasing towards $100billion as the $50/bbl threshold is approached.
“Breaking down the uplift in additional resources produced and the additional capital expenditure unlocked reveals Nigeria as the country with most potential. Nigeria will effectively be able to produce about 2 billion barrels more than otherwise while justifying $10billion more investments.”
However, the AEC stated that: “From a spend perspective, that is, all money spent on investments and operations, we can expect a more stable outlook for Africa’s share. While Africa is projected to consistently represent about 8-9 per cent of the global spend between 2012 and 2025, its share of global production is also expected to decline over the same period.
“Unfortunately, the only conclusion to be drawn from such facts is once again that of a deteriorating competitive position for African petroleum resources. With the exception of a few jurisdictions, producing a barrel of oil from African soil remains less competitive than producing the same barrel elsewhere.”
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I’m Committed To Community Dev – Ajinwo
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RSG Tasks Rural Dwellers On RAAMP …As Sensitization Team Visits Akulga, Degema, Three Others

Rivers State Head of Service, Dr (Mrs) Inyingi Brown, has called on rural communities in the State to embrace the Rural Access and Agricultural marketing project (RAAMP) with a view to improving their living conditions.
This follows the ongoing sensitization campaign by the State Project Implementation Unit (SPIU) visits to Degema, Abonnema, Afam headquarters of Degema, Akuku Toru and Oyigbo Etche and Omuma local government areas respectively.
Dr Brown who was represented by the Deputy Director, Special Duties in her office, Mrs Dein Akpanah, said RAAMP was initiated by the Federal Government and World Bank to economically empower rural dwellers.s
She said the World Bank understands the plights of rural farmers and traders in the State, and therefore came up with the programme to address them.
According to her, RAAMP will improve the conditions of farmers, traders and fishermen, and therefore, behoves on every rural communities in the State to embrace the programme.
The Head of Service also said the programme would support the youths to be gainfully employed while bridges and roads will be built to link farms and fishing settlements.
Also speaking, the State project coordinator, Mr Joshua Kpakol, said the programme has the potential of creating millionaires among farmers and fishermen in the State.
Kpakol who was represented by Engr. Sam Tombari, said RAAMP would help farmers and fishermen to preserve their produce.
According to him, the project will build cold rooms and Silos for preservation of crops and fishes while access roads will also be created to link farmers and fishermen to the market.
He, however, warned them against any act that will lead to the suspension of the projects by the World Bank.
Kpakol particularly warned against acts such as kidnapping, marching ground, gender based violence and child labour, adding that such acts if they occur may lead to the cancellation of the project by the World Bank.
During the visit to Oyigbo local government area, Mr Joshua Kpakol, said the team was there to let them know how they will benefit from the Raamp.
The coordinator who was personally at Oyigbo said the World Bank introduced the project to check food insecurity in the State.
He said already 19 states in Nigeria are already benefitting from the project and called on them to embrace the project.
Meanwhile, stakeholders in the three local government areas have commended the World Bank for including their areas in the project.
They, however, complained over the incessant attacks by pirates on their waterways.
At Degema, King Agolia of Ke kingdom said land was a major problem in the kingdom.
King Agolia represented by High Chief Alpheus Damiebi said many indigenes of the kingdom are willing to go into farming but are handicapped by lack of land.
Also at Degema, the representative of the Omu Onyam Ekeim of Usokun Degema kingdom, Osoabo Isaac, said Degema has embraced the programme but needed more information on the implementation of the programme.
Similarly, while High Chief Precious Abadi advised that the project should not be narrowed to only crop farming, a community women leader, Mrs Orikinge Eremabo Otto, called for the construction of cold rooms in all fishing settlements in the area.
At Abonnema, Mr Diamond Kio linked the problem of the area to incessant piracy along waterways.
He also expressed fears over the possibility of the project being hijacked by politicians.
Also at Abonnema, a stakeholder, Ikiriko Kelvin, called on the World Bank to design an agricultural project that will suit the riverine environment, while at Oyigbo, HRH Eze Boniface Akawo expressed satisfaction with the project.
John Bibor
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Senate Replaces Natasha As Committee Chairman

The political mudslinging between the Senate leadership and Senator Natasha Akpoti-Uduaghan continued yesterday as the Senate named Senator Aniekan Bassey as the new Chairman of the Committee on Diaspora and Non-Governmental Organisations.
Senate President, Godswill Akpabio, announced the appointment during yesterday’s plenary, confirming Bassey’s replacement of Senator Natasha Akpoti-Uduaghan, who is currently on suspension.
Akpoti-Uduaghan was reassigned to the Diaspora and NGOs Committee in February after she was removed as Chair of the Senate Committee on Local Content during a minor reshuffle.
Bassey is the senator representing Akwa Ibom North-East Senatorial District.
Although no reason was given for her removal yesterday, the change is believed to be connected to her unresolved suspension.
In May, Justice Binta Nyako of the Federal High Court ordered her reinstatement and directed her to tender an apology to the Senate.
However, the Senate has insisted it has not received a certified true copy of the court judgment.
Akpoti-Uduaghan who represents Kogi Central, has yet to resume her legislative duties despite a recent court ruling that voided her suspension.
In a televised interview on Tuesday, Akpoti-Uduaghan said she was awaiting the Certified True Copy of the judgment before officially returning to plenary, citing legal advice and respect for institutional process.
Although the Federal High Court described her suspension as “excessive and unconstitutional”, a legal opinion dated July 5 and attributed to the Senate’s counsel, Paul Daudu (SAN), argued that the ruling lacked any binding directive to enforce her reinstatement.
Akpoti-Uduaghan, one of only three female senators in the current assembly, said the continued delay in allowing her return was not only a denial of her mandate but also a blow to democratic representation.
“By keeping me out of the chambers, the Senate is not just silencing Kogi Central, it’s denying Nigerian women and children representation. We are only three female senators now, down from eight,” she said.
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