Strengthening the Nigerian Oil and Gas Value Chain for a Sustained Economic Growth Ike Amos
O
ver the years, the Nigerian petroleum industry, apart from making signif icant contribution to the country’s revenue, has made little impact to the growth and development of the economy. Specifically, in some cases, the inability of the country to reach its full economic potentials had been blamed on the discovery of crude oil and gas in Nigeria. However, this article highlights the opportunities to be derived from effectively creating linkage between the petroleum industry and the Nigerian economy and
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Majorwaves Energy Report
also ways the oil and gas value chain can be strengthened for sustained economic growth. The Nigerian petroleum industry has over the years made significant contribution to the country‘s economy, and has remained the major revenue earner for the country, accounting for about 90 per cent of the country’s revenue. However, of recent, the industry’s impact in the economy had been waning, especially with the low crude oil prices. Specifically, the industry plunged the Nigerian economy into recession in the second quarter of 2016, while the industry’s contribution to employment generation has diminished considerably.
JULY 2019, Vol 2 No 4
In the first quarter of 2019, the National Bureau of Statistics (NBS) disclosed that the oil And gas industry contributed 9.14 petroleum to Nigeria’s total real GDP, down from figures recorded in the corresponding period of 2018 but up compared to the preceding quarter, where it contributed 9.55 per cent and 7.06 per cent respectively. Also, data obtained from the Central Bank of Nigeria (CBN) revealed that in the first quarter of 2019, the oil and gas industry accounted for 61.2 per cent of Nigeria’s gross revenue, with N1.41 trillion, out of the N2.31 trillion gross federally-collected revenue recorded in the period under review. www.majorwavesenergyreport.com
