By Aina Rebecca Omobolanle( SIWES student, Ogitech Igbesa.)
Recent indicators suggest a shift in Nigeria’s economic trajectory, with a resurgence in the dominance of the oil sector, overshadowing gains made in non-oil areas.
Despite positive signals of growth in the crude oil industry, the Organisation of Petroleum Exporting Countries (OPEC) warns of emerging challenges.
Vanguard’s investigation reveals encouraging performance benchmarks, including an upswing in rig count, recovery in various oil terminals, the inauguration of new oil wells, and stability in export prices.
The rig count, a key indicator in the upstream sector, witnessed a year-on-year increase of 62% from June to October 2023, reaching 15 compared to the previous year’s nine.
Breaking down the data month by month, OPEC reports Nigeria’s rig count as 16, 14, 18, 15, and 13 for June through October 2023, showcasing notable progress from the figures of 11, 11, 10, 7, and 8 recorded in the same months of 2022.
While OPEC doesn’t specify the driving factors behind this upturn, Vanguard’s investigations point towards the positive response of stakeholders, particularly investors, in the post-Petroleum Industry Act (PIA) era.
The PIA, a comprehensive legislation enacted by former President Muhammadu Buhari, aims to restructure and reposition the oil and gas industry for new investments, emphasizing transparency and accountability.
