AO2 LAW has released the maiden edition of its 2018 Energy outlook for the Nigerian power, oil and gas industry.
The report which reviewed and gave key insights into happenings in the industry for year 2017 also provided investment and policy forecasts in 2018.
The 2018 energy outlook predicts the rise in energy investment. It also predicted that the divestment of IOCs will create great opportunities for indigenous oil companies and advised the government on the need for policy stability especially in the power sector.
According to Oyeyemi Oke, Practice Partner, Energy, AO2 LAW, “close to 80 percent of Nigeria’s energy supply could be met if backed by enabling strategies and policies. He explained that from the research for the report, different policies and reforms in the energy sector led to the breakthrough in 2017 and has created the fertile ground for the expectations of 2018.”
The report enumerated a number of key policies that shaped the sectors in 2017. One of them was the release of the “7 Big Wins”, a policy document which highlights the government’s short and medium-term priorities to grow Nigeria’s oil and gas industry between 2015 and 2019. It also analyzed briefly the importance of the Petroleum Industry Governance Bill and its strategic importance.
Oyeyemi further stressed the importance of finding lasting solutions to the liquidity challenges in the power sector, one which already led to the introduction of the Power Sector Recovery Programme in Q2 of 2017. He said “The PRSP is a policy document on operational, governance and financial interventions to be implemented by the Federal Government of Nigeria over the next five years to restore the financial viability of Nigeria’s power sector, improve transparency and service delivery and “reset” the NESI for future growth”.
The report also addressed the key expectations for the energy sector in 2018 and gives strong prospects for growth in anticipation of renegotiation of product sharing contracts (PSCs), more alternative funding arrangements, increase in private investments and other expected policy implementation in both power and oil and gas.