The Nigerian Investment Promotion Council (NIPC) has said the gap between demand and supply in the oil and gas sector can only be bridged when there is effective Foreign Direct investment (FDI) into the sector.
It said the nation has continued to attract major international oil companies due to the conducive economic environment and condusive regulatory framework that would promote competition and ensure transparency.
The Head, SouthWest Zone of NIPC, Isaac Idowu, told The Nation that the Federal Government has designed laws that make for enterprise promotion as the economy is private sector driven, with over $130 billion investment.
He said the strength of the economy lies in the fact that it has predictable investment climate and a huge population where foreigners can own 100 per cent enterprise.
In his words: “ Nigeria has proven to be among the most investment-friendly nations for International Oil Companies (IOC), not only because of the geological configuration of its terrain, but the relative security of investments in the economy. Also, the government is putting in place a regulatory framework that would promote competition and ensure transparency in the industry.”
Other reasons why one should invest in the sector, Idowu added, are the abundant and growing reserves of crude oil and gas, effective regulatory framework that promotes private sector as engine of growth, partially-deregulated downstream subsector with determination to fully deregulate the sector.
He said the existence of oil and gas free trade zones for downstream manufacturing activities, high return on investments, unhindered repatriation of profit, capital and dividends, in addition to investment protection against expropriation and nationalisation, are some of the pecks government has made available for investors.
On the investment opportunities in the sector, the NIPC chief said there has been search for development of local substitutes for such items as medium pressure valve, pumps, shallow drilling equipment, drilling mud, bits fittings and drilling cement and any investor that ventures into such areas will prosper.
Information from The Nation was used in this report.