Nigeria will miss out on a total planned capital expenditure (capex) of US$3.3 trillion across the oil and gas value chain from 2018 to 2025 unless it carries out over due reforms of the sector.
The country is already missing out as total capex of US$545 billion is expected to be spent in 2018 but will elude Nigeria because of lack of policy clarity in the sector. Of the US$3.3 trillion planned capital spend, about 45 percent would go on midstream projects, and 22 percent on crude oil refineries while 24 percent is expected to be spent on the major planned and announced production fields.
The petrochemicals sector is expected to account for nine per cent of the global total. Petrochemicals are set to drive growth in world oil demand and Nigeria can benefit in the long run, if it acts fast and creates the enabling environment to attract private sector investment into its petrochemicals industry, analysts say.
Source: Business Day