PIA: Investors shun Nigeria’s $48bn gas market over gas pricing uncertainty, licensing
The Federal Government’s desire to attract about $48 billion of a projected $194 billion oil and gas investment in Africa may have suffered a huge setback with investors opting for other business friendly destinations. The development may have been orchestrated by its lack of clarity in gas pricing, licensing requirements and domestic gas delivery obligations among others contained in the recently signed Petroleum Industry Act (PIA). The Nigerian National Petroleum Corporation (NNPC) had in 2019 projected that the country will attract about $48.04 billion or 24.8 per cent of an estimated $194 billion total oil and gas investment coming to Africa over the next seven years (2019-2026). Its closest rival on the continent, Angola, will take 11.3 per cent of the total expected spend, while emerging jurisdiction, Mozambique, will have as much as 23.8 per cent of that. The NNPC also stated that within this investment window, the country would have 20 out of the 93 projects funded across the continent’s oil and gas industry. Prior to the signing of the PIA, gas investors had complained about the earlier listed challenges, a development that led to many gas fields undeveloped across the country.