The Lagos Chamber of Commerce and Industry, LCCI, has said that the evolving global energy market dynamics suggest an urgent need to take a sober look at the Nigerian oil and gas sub-sector in particular and the energy sector in general.
The President of LCCI, Mr. Goodie Ibru, declared that the extreme dependence of government finances and external trade balances on proceeds from the sector, exposes the nation to significant risks from oil price and production shocks.
According to Ibru, “despite the declining contribution to the nation’s Gross Domestic Product (GDP) – currently at 14.7 per cent, the extreme dependence of government finances and external trade balances on proceeds from the sector exposes the nation to significant risks from oil price and production shocks.
“There are profound concerns over dwindling performance of the sector which has been attributed to the structural gaps in its regulatory, fiscal and business practices which have supported high inefficiencies” he said.
Unfortunately, he said, the Petroleum Industry Bill (PIB) which was adjudged the most significant attempt to address these challenges through the reform of the governance and business structure of the sector as well as resolution of fiscal issues is yet to see the light of the day.
