PIA implementation: NNPC targets $50bn investment to unlock potential

…Attributes growth of FDIs to PIA implementation

By Ibiyemi Mathew

The Nigeria National Petroleum Company Limited (NNPCL) has announced that the implementation of Petroleum Industry Act (PIA) will require $50 billion investment to unlock potentials and opportunities available  to drive growth in Nigeria’s oil and gas sector.

Speaking at the Nigeria International Energy Summit in Abuja, the Chief Upstream Investment Officer (CUIO), NNPC Upstream Investment Management Services (NUIMS) Bala Wunti who was represented by the Head of Finance, of NUIMS, Mr Chisoma Elewa-Ikpakwu said, “The finance of today favours investments that will unlock cleaner and more sustainable energy resources such as natural gas and hydrogen which Nigeria has adopted as a destination energy source.

“We have huge opportunities still untapped and infact in the near future, we will  need over $50billion to unlock investment potential in our country.”

Highlighting the achievements of the NUIMS since the implementation of the PIA, Chisoma noted that, “Part of the achievements recorded in the last 365 days is the creation of the industry hydrocarbon security architecture which has seen production improving from as low as 1.11 million in 2022 to 1.6 million this year. On the average we are now producing 1.5 million barrels per day.”

Speaking further, he noted that, “FDI continued to decline in the country over the years largely due to fiscal uncertainty surrounding the protracted passage of the PIB.

“Foreign Direct Investments (FDIs) into our sector moved gradually and peaked in 2011 to $8.8 billion. This went down to as low as $775 million in 2018 but with the PIA, we are beginning to see it gradually increasing to $4billion from $3billion in 2021 and $2billion in 2020.

“The PIA  continues to be a big enabler for us to do all this and we have renewed our vision to be a global energy company of choice.” He concluded.

Group Chief Executive Officer of the NNPC, Mallam Mele Kyari, who was represented by the Managing Director of the Nigerian Gas Infrastructure Company Limited, Seyi Omotowa, stressed that the NNPC plays an active role in realising the intended benefits of the Decade of Gas initiatives.

“The opportunities to be unlocked from the Decade of Gas are numerous with significant benefits for Nigeria. With over 200 tcf of natural gas reserves and a potential of growing to 600 tcf, there will be enough resources for the numerous gas utilisation projects being developed by NNPC Limited and its partners.

“NNPC is therefore taking advantage of the huge reserves to support growth in the power and industrial sectors, address energy poverty, reduce carbon-footprint and create more employment opportunities,” he said.