The Chairman, Board of Trustees, Aret Adams Foundation, Charles Osezua, said this at the foundation’s 21st Annual Memorial Lecture Series in Lagos.
He stressed that over the last 15 years, there has been a steady decline in Nigeria’s ability to attract and retain foreign direct investment to the oil and gas sector, falling from a high of $22.2 billion in 2014 to $6 billion in 2021.
He added that also troubling is the steady withdrawals and divestments of many IOCs, while divestment has created opportunities to deepen local, indigenous participation in the upstream, growth is however constrained without capital.
“While we do not know for certain the reasons for this decline, indications are that it may not be unrelated to corporate governance and failures to adhere to the principles and values which guided business in the Aret Adams days, which in one word I will call trust,” he said.
The decline in FDIs has implications for Nigeria’s energy security, economic growth, and long-term development objectives. With reduced investment in exploration, production, and infrastructure development, the country may struggle to maximize its hydrocarbon resources and meet domestic and international demand for petroleum products.
The foundation added that the decline in FDIs could hinder efforts to modernize Nigeria’s oil and gas industry, improve operational efficiency, and promote sustainable development as investments in technology, innovation, and environmental management are essential for ensuring the long-term viability of the sector and minimizing its environmental footprint.
The Director and CEO of the Department of Petroleum Resources (DPR), Osten Olorunsola, emphasised the pivotal role of regulation in revitalizing Nigeria’s oil and gas industry, particularly in the face of current challenges and global trends.
He highlighted the importance of robust regulatory frameworks in fostering investor confidence, ensuring operational excellence, and promoting sustainable development in the sector.
