Oil, gas drop behind agriculture, telecommunication, others in 2021-2022 GDP ranking

Add as a preferred source

As the 2023 Nigerian Oil and Gas Opportunity Fair (NOGOF) kicks off, the Executive Secretary of Nigerian Content Development And Monitoring Board (NCDMB), Engr. Simbi Wabote has revealed that the oil and gas sector steadily dropped behind agriculture, trade, telecommunications/ICT and real estate in terms of sectors that contributed the most to Nigeria’s GDP in 2021-2022.

He said these are signs of a dying sector, appealing that every Nigerian must join hands to stop the decline so that the sector can return oil and gas contribution to GDP in double digits levels just as other major oil-producing countries.

Speaking at the 2023 Nigerian oil and gas opportunity fair which was held at the Nigerian Content Tower, Yenagoa, with the theme; The Oil and Gas Industry: Catalyst and Fuel for the Industrialization of Nigeria, Engr. Wabote said that the event is expected to reflect the pivotal role the oil and gas industry is intended to play in driving the economic growth and development of Nigeria.

According to him, “this year’s theme reflects the pivotal role the oil and gas industry is expected to play in driving the economic growth and development of Nigeria. Of late, this role expected of the oil and gas industry has been dwindling due to missed opportunities as a result of policy inconsistencies, deferred decisions, and investment apathy.

“Just to set the context, I would like to draw your attention to the nation’s GDP growth rate between the years 2021 to 2022 as released by the National Bureau for Statistics (NBS). Over this period, the growth of the nation’s GDP has been marginal, but the reality is that we need to drive the growth rate to double digits for us to achieve the level of economic advancement and development that we desire.

“The NBS report noted that the total annual contribution of oil to aggregate GDP in 2022 was 5.67% compared to 7.24% in 2021. The oil sector has steadily dropped behind Agriculture, Trade, Telecommunications/ICT, and Real Estate in terms of sectors that contributed the most to Nigeria’s GDP.”

Explaining further, he said that “Norway has doubled its GDP in the last 2 years from $171.2 Billion to $367 Billion with the oil and gas sector contributing about 20% followed by their hydropower.

“Although Norway is in a different clime from Nigeria, we share some similarities when we look at the huge deposits of natural resources coupled with a skilled labour force and the adoption of new technology that made Norway a prosperous country during the twentieth and twenty-first centuries.

“It is my belief that the oil and gas sector can serve as the catalyst that will enable us to achieve the desired double-digit GDP growth rate if we are bold and disruptive in our strategy.”

Speaking further said, in the aspect of creating opportunities, he explained that the NOGICD Act has set the minimum targets in 278 services across the oil and gas value chain in the schedule, saying he has always referred to the schedule of the NOGICD Act as a compendium of opportunities waiting for any serious investor to tap into.

He said, beyond the core oil and gas activities related to exploration and production, there are several related activities enabled by the industry such as security, insurance, medicals, ICT, legal services, aviation, catering, and several others.

“We have therefore designed NOGOF with the following objectives in mind, showcase opportunities in the upstream, midstream and downstream sectors of the petroleum industry, provide opportunities for foreign and local investors to build synergies in the Nigerian oil and gas industry.

“Provide Nigerian companies and prospective investors an opportunity to showcase their capabilities. Provide stakeholders with information on upcoming projects to enable Nigerian companies/manufacturers to tailor their business development strategies. Identify high-impact activities with potential for in-country value addition with a 5-year outlook to deepen the practice of Nigerian content.”

Wabote further said that opportunities driven by policies, guidelines, regulations, and statutes are attractive to investors as there is clarity on the framework governing their business endeavours.

He said several policies have been formulated and implemented by the government in their quest to stimulate economic growth and development.

“These policy initiatives have led to the creation of several businesses and a surge in local utilisation of gas. For example, the annual consumption of LPG increased from 360,000 tonnes in 2015 to 1.4 million tonnes in 2022. While this growth is commendable, it is instructive to note that about half of the local LPG requirement is imported.

“In addition, the consumption level is still far below the 4 million tonnes consumption by the year 2025 as targeted by the National Gas Expansion Program (NGEP). These gaps in volumes and consumption spread present opportunities in local processing, storage depots, trucking, cylinder manufacturing, distribution pipelines, conversion kits, and many other opportunities.

“As the Number 1 MDA in the Ease of Doing Business, I make bold to say that the Board will continue to support ongoing projects and any new opportunities that will be identified from this opportunity fair in line with our SLA.”

On his part, the governor of Bayelsa State, Wabote said that opportunities driven by policies, guidelines, regulations, and statutes are attractive to investors as there is clarity on the framework governing their business endeavours.

He said several policies have been formulated and implemented by the government in their quest to stimulate economic growth and development.”These policy initiatives have led to the creation of several businesses and a surge in local utilisation of gas. For example, the annual consumption of LPG increased from 360,000 tonnes in 2015 to 1.4 million tonnes in 2022. While this growth is commendable, it is instructive to note that about half of the local LPG requirement is imported”.

“In addition, the consumption level is still far below the 4 million tonnes consumption by the year 2025 as targeted by the National Gas Expansion Program (NGEP). These gaps in volumes and consumption spread present opportunities in local processing, storage depots, trucking, cylinders manufacturing, distribution pipelines, conversion kits, and many other opportunities”.

On his part, the governor of Bayelsa State, Senator Douye Diri, commended the Executive Secretary of NCDMB for the Oloibiri Museum and other infrastructural development, and also for training and retraining of youths and women in Bayelsa.

He also said that the prosperity government have also done two major programmes for youths of the state, for them to be skilful.

Represented by the Commissioner for Mineral Resources, Mr Ebierin Jones, he urged the Nigerian government to look into the establishment of a pipeline company that can produce them here in Nigeria.

He said, most of the youths in Bayelsa, are unemployed, and he charges the oil firms to create an opportunity for Bayelsa youths to be trained.

READ ALSO FROM NIGERIAN TRIBUNE