Business

Nigeria Doubles Down On Oil After Years Of Trouble

Published

5 years ago

October 15, 2021

After months of stalling because of Covid restrictions and OPEC cuts, as well as significant international criticism over misplaced funds, Nigeria appears to be optimistic about the future of its faltering oil industry in a time when few others are.
The Nigerian government announced this week that it expects the country to produce 1.88 million barrels per day of crude oil in 2022, assuming a benchmark price of $57 per barrel. In the 2022-2024 Medium-Term Expenditure Framework (MTEF), just approved by the senate, the government also predicted GDP growth of 4.2 percent and inflation of 13 percent in 2022. Inflation in Nigeria decreased to 17.01 percent in August, in a country that has continued to struggle with a double-digit inflation rate since 2016.
This is a highly optimistic plan seeing as Nigeria, Africa’s largest economy, was hit particularly hard by the Covid-19 pandemic, from which it is still recovering. The Nigerian economy contracted 1.92 percent in 2020, after a growth of 2.92 percent in 2019. However, the contraction was lower than the World bank estimate of a 4 percent contraction or the IMF estimate of 3.2 percent.
The hopeful budget approval follows President Muhammadu Buhari’s signing of the Petroleum Industry Bill into law in August. This comes after two long decades of delays in approving the PIB, at a time when much of the rest of the world is moving away from fossil fuel strategies towards green policies with a focus on renewable energy. Plans to stop the sale of diesel and petroleum vehicles as well as targets for net zero-carbon emissions by 2050, across Europe and North America, make the new Petroleum Industry Act (PIA) appear somewhat outdated. However, advocates for the Bill believe that the African continent will continue to rely on oil production for fuel well into the next decade. The President stated in August at the inauguration of the Steering Committee and PIA Implementation Group that Nigeria may have lost as much as $50 billion worth of investment because of years of delays in enacting the PIA, as investors were uncertain of Nigeria’s oil and gas outlook.
There has been significant criticism over Nigeria’s failure to establish a better regulatory environment for its oil and gas industry until now, which would have increased investor interest in the region. This is particularly pertinent at a time when other African states are beginning to develop their oil industries, and further competition comes from new emerging markets such as Guyana and Suriname.
Critics also point towards the $14 billion in funds provided to develop the Niger Delta region, the heart of the Nigerian oil industry, that was ill spent between 2001 and 2019. The funds were expected to support projects to “offer a lasting solution to the socio-economic difficulties of the Niger Delta Region and to facilitate the rapid and sustainable development of the Niger Delta into a region that is economically prosperous, socially stable, ecologically regenerative and politically peaceful.”
The inability to establish an adequate regulatory environment for foreign oil and gas investors for so long, as well as government’s failure to use funds to develop its oil-rich Niger Delta region, have put the country at the bottom of the list for many investors now attracted to up-and-coming oil regions without such a difficult past in the sector.
Not to forget, Nigeria is not out of the woods, still battling with reduced OPEC+ oil quotas and the lack of investment that came alongside them. Angola, Nigeria, and Kazakhstan have failed to increase their oil production in line with the OPEC+ easing of cuts this August, primarily due to years of underinvestment in the oil-rich nations’ energy industries.
In addition, concerns around Covid-19 restrictions continue to plague Nigeria’s oil industry, as the Delta region faces yet another lockdown if cases continue to rise. The challenges of 2020 could be seen all over again should Rivers State go into lockdown, with oil firms facing difficulties in transporting personnel to and from oil fields, as well as restrictions affecting pipeline and facilities maintenance, as was the case last year.
But the Nigerian government and those left in Nigeria’s oil industry are hopeful that ongoing demand from the African continent and increasing demand from Asia for oil and gas could help boost the country’s appeal following the enactment of the PIA. With 37 billion barrels of proven oil reserves, ranking 10th in the world, Nigeria has always had significant potential to become oil superstar but has until now lacked the regulatory framework to make this dream a reality until now.
So, the question is whether the “landmark” PIA will really be as ground-breaking for Nigeria’s oil industry as once hoped. The Nigerian government holds out hope for the new Act attracting greater foreign investment in the oil-rich nation, but time is yet to tell whether oil majors are willing to take a gamble on the African state so late in the game.
Other companies that look to capitalise on higher prices this year:
Transocean (NYSE:RIG) After having missed on earnings for a number of quarters in a row, this offshore rig giant is seeing opportunities left and right as oil majors are once again betting big on offshore oil and gas production. The increasing market for offshore operations couldn’t come at a better time for Transocean, which remains one of the more speculative players in its sector.
At the moment, the company is looking to expand its footprint in the Gulf of Mexico. Earlier this month, it landed a $252 million firm contract for its new, ultra-deepwater drillship, the Deepwater Atlas. Transocean’s client, BOE Exploration and Production LLC looks to commence operations at the Shenandoah project in the 3rd quarter of 2022.
Suncor Energy (NYSE:SU; TSE:SU): Suncor has been in the news this week as it decided to shut down some of its oil sands production due to a mechanical disruption. Syncrude, majority owned by Suncor, produces some 275,000 bpd of crude oil from bitumen at its upgrader in Alberta, according to the latest data, which was for January to May. Despite the disruption, Suncor remains one of the most attractive oil plays in Canada, which some see as the best contrarian oil bets out there.
Suncor’s relatively low extraction costs per barrel, coupled with strict ESG standards and long lasting reserves make the company interesting for long-term oil investors.
And Suncor isn’t just focusing on its flagship Syncrude project. Two weeks ago, the company announced the plan to extend the life of the Terra Nova FPSO. Together with Murphy Oil and Cenovus, and with support from the local government, Suncor looks to extend the production life of the Terra Nova FPSO by around 10 years.
Bradstock Reports for Oilprice.com

Business

Boat Mishap Kills Pastor, Wife And Church Members In Brass Water

Published

2 days ago

May 18, 2026

The Tide

A boat accident in Bayelsa state has killed a serving Pastor, Wife and other church members along Brass waterways

The sad incident happened at Odioama in Brass local government area of Bayelsa State when the Pastor, wife and members of his church were in a programme.

?Tide confirmed that the lifeless body of the Pastor’s wife has been found and deposited in a mortuary while the remains of her husband ,the Pastor is yet to be recovered

as search party are still ongoing.

Although the real cause of the boat Mishap is not yet known as at the time of this report, our Correspondent gathered that the identities of the Pastor, wife and church members were not disclosed to the public.

The mishap, Tide gathered occurred on Friday morning when the church members were on a boat transit

The Bayelsa State government and the state police command are yet to issue official statement’s on the sad accident

By: CHINEDU WOSU

Business

Rivers Workers Seek Scrapping Of Contributory Pension Scheme

Published

2 days ago

May 18, 2026

The Tide

The Rivers State Council of Nigeria Civil Service Union has called on the State Government to urgently scrap the contributory pension scheme, describing it as unfavourable to long-serving civil servants in the state.

Chairman of the union, Chukwuka Osuma, said this in an interview with newsmen in Port Harcourt, recently.

Osuma said the current pension structure has continued to worsen post-retirement hardship for workers.

He noted that the contributory pension scheme had failed to provide adequate retirement security for workers who had spent many years in service, especially those approaching retirement age.

According to him, civil servants who had served for more than 20 years were among the worst affected under the scheme, insisting that many retirees could no longer cope with prevailing economic realities.

He also informed that the Union has made moves to showcase their concerns, pleading with Governor Siminalayi Fubara to abolish the pension policy and introduce a more favourable arrangement for affected workers.

“The union was not opposed to pension reforms, the contributory scheme should only apply to newly employed workers or those with fewer years in service”, he said.

Osuma explained that workers who had already spent decades in the civil service ought to remain under a more secure pension structure capable of guaranteeing stability after retirement.

The labour leader further noted that inflation and the rising cost of living had continued to erode the value of retirement savings, thereby increasing the suffering of pensioners across the country.

He also appealed to the state government to consider extending the years of service in the civil service from 35 to 40 years and the retirement age from 60 to 65 years.

Osuma argued that such adjustment had become necessary in view of present-day economic realities and changing conditions in the workplace.

The unionist also reviewed that similar policies had already been adopted in some sectors and jurisdictions, expressing optimism that the State could also implement the reforms for the benefit of workers.

He however, commended Governor Fubara for approving an N85,000 minimum wage for workers in the state, noting that the amount was above the national benchmark of N70,000.

Osuma also acknowledged the government’s efforts in the area of workers’ promotions and bonuses, but insisted that pension reforms and extension of years of service remained critical to the long-term welfare and stability of civil servants in Rivers State.

By: King Onunwor

Business

FG Begins South-West Tour To Promote New Cooperative Bank

Published

1 week ago

May 13, 2026

The Tide

The Federal Government has launched the South-West zonal engagement and ministerial advocacy tour on the Cooperative Bank of Nigeria share capital mobilisation, sensitisation and cooperative sector digitalisation.

Reports say the initiative was launched through the Federal Ministry of Agriculture and Food Security.

According to reports, the advocacy tour, organised by the ministry’s Federal Department of Cooperatives, began on Monday in Lagos.

Speaking at the event, the Minister of State for Agriculture and Food Security and Supervising Minister of Cooperative Affairs, Dr Aliyu Abdullahi, said the initiative was part of President Bola Ahmed Tinubu’s Renewed Hope Agenda.

Abdullahi described the exercise as a strategic effort to reposition the cooperative sector as a key driver of inclusive economic growth, financial inclusion, enterprise development, food security and national prosperity.

“Today represents a defining moment in our collective determination to reposition the cooperative sector as a major driver of inclusive economic growth, financial inclusion, enterprise development, food security and national prosperity,” he said.

The minister noted the modern cooperative movement in Nigeria originated in the South-West following the 1934 Strickland Report, which led to the enactment of the Cooperative Societies Ordinance of 1935.

According to him, the decision to commence the sensitisation and share capital mobilisation tour in the region is symbolic, as it marks a return to the roots of cooperative development in the country.

Abdullahi said the advocacy tour was a direct outcome of resolutions reached at the 8th Regular Meeting of the National Council on Cooperative Affairs held in Abuja in March 2026.

He said the council approved the Renewed Hope Cooperative Reform and Revamp Programme, a comprehensive framework designed to strengthen the cooperative sector and align it with the administration’s goal of building a one-trillion-dollar economy.

“The reform programme focuses on seven strategic pillars, including governance reforms, cooperative financing and the establishment of the Cooperative Bank of Nigeria, digitalisation, capacity building, value chain development, inclusion of youths, women and persons with disabilities, and strategic partnerships,” he said.

He said the establishment of the Cooperative Bank of Nigeria and the digitalisation of the cooperative sector were the two major transformational initiatives under the programme.

“The Cooperative Bank of Nigeria is aimed at rebuilding a strong cooperative financial system capable of supporting cooperators, farmers, artisans, traders, SMEs, youths, women and persons with disabilities with accessible and affordable financial services,” he said.

Abdullahi emphasised that the proposed bank would be government-enabled but not government-funded.

“Government is not establishing the bank as an owner, nor will it rely on Treasury Single Account funds.

“The role of government through the FMAFS is to provide policy support, stakeholder coordination, regulatory facilitation and an enabling environment under the Renewed Hope Cooperative Reform and Revamp Programme,” he said.

Also speaking, the Lagos State Commissioner for Commerce, Cooperatives, Trade and Investment, Mrs Folashade Ambrose-Medebem, reaffirmed the state government’s commitment to cooperative sector transformation.

She described cooperatives as critical tools for promoting inclusive growth, grassroots productivity, food security, financial inclusion and community wealth creation.

Ambrose-Medebem said Lagos State would continue to support reforms and collaborate with stakeholders to ensure the successful implementation of the Renewed Hope Cooperative Reform and Revamp Programme (2025–2030).

“Together, let us build a cooperative ecosystem that is modern, transparent, digitally enabled, financially inclusive and globally competitive.

“Let us build cooperatives that not only mobilise savings, but also mobilise prosperity,” she said.