The Federal Government revealed yesterday that Nigeria and other oil and gas producing countries in Africa, under the umbrella of African Petroleum Producers Organisation (APPO), are fine-tuning plans to generate between $1 billion and $2 billion to finance various oil and gas projects in African countries.
This deal also seeks to boost Intra-African collaboration by tackling common energy challenges plaguing various African nations.
The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, who made the disclosure at the Nigerian International Petroleum Summit (NIPS), in Abuja on Monday, said APPO member nations were collaborating to enlarge the duties of an existing financing body in Africa, which would be renamed African Energy Investment Corporation, and saddled with the responsibility of financing energy projects.
Kachikwu also explained that most African countries operated in silos, a strategy he said needed to be dismantled.
“Everybody does their own thing. You build your own refineries, plants, gas turbines, among others. If we could just cross the rubicon and be able to extend hands of infrastructural relationship across Africa, build joint pipelines, plants and refineries, begin to protect the African market, we would have taken a huge step, not only in the development of Africa, but on the stabilisation of independent countries.” – Kachikwu
Oil and Gas industry in Nigeria
Oil and gas, in so many years, has proven to be a huge source of profit for African producing countries. It has been a primary driver of economic growth and attracts a lot of foreign investors.
With a maximum crude oil production capacity of 2.5 million barrels per day, Nigeria ranks as Africa’s largest oil producer and the sixth largest oil producing country in the world and has been a member of the Organisation of Petroleum Exporting Countries (OPEC) since 1971.
With countries like China investing, the Nigerian Economy is heavily dependent on the oil sector, which accounts for over 95 percent of export earnings and about 40 percent of Government revenues, according to the monetary fund.
The biggest natural gas initiative is the Nigerian Liquefied Natural Gas Company, which is operated jointly by several companies and the state.