Major Events That Shaped Nigeria's Oil & Gas Sector In 2023 And Looking Ahead 2024

Will Oil, Gas Sector Increase Nigeria’s Revenue In 2024?

3 months ago
2 mins read

Nigeria’s oil and gas sector has developed as the star entertainer of the year, encountering a noteworthy surge of 125% over the past year, making it the best-performing record in 2023. This unexpected victory is credited to the reforms started by President Bola Tinubu’s administration, with the suspension of the costly fuel subsidy program standing out as a significant move.

The choice to end the fuel subsidy program, which has depleted public funds over the years, has reignited intrigue in vitality stocks on the Nigerian Exchange (NGX). The coming convergence of capital not as it were altogether supported liquidity within the showcase but also activated a broader rise over different segments.

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Agreeing to information from the Nigerian Exchange Limited, the oil and gas file, speaking to the execution of cited oil and gas firms on the NGX, surged by 125.5%, coming to 1,043.06 record focuses at the near of the year, a significant increment from the opening list of 462.48 in January 2023.

Driving oil and gas companies such as Conoil, Eterna, Japaul Gold and Wander, MRS Oil Nigeria, Oando, Seplat Vitality, Add up to Nigeria, and Capital Oil contributed essentially to this exceptional development.

Analysts, in a chat with Prime Business Africa, communicated good faith with respect to the sector’s maintained development in 2024, citing deregulation, liberalization, and expected major postings on the NGX as key components. The potential posting of the Nigerian National Petroleum Enterprise (NNPC) and the inescapable dispatch of Dangote Refinery are seen as major catalysts for the sector’s positive outlook.

Mr. Mike Eze, Managing Director of Crane Securities Limited, highlighted the desire for strong movement within the oil and gas sector in 2024. He said: “Deregulation and liberalization endeavors are making a more alluring environment for speculation, and we anticipate to see a critical uptick in activity.”

Eze too expects the posting of NNPC and Dangote Refinery, noticing that these developments will boost propects and draw in considerable venture. He predicts noteworthy returns for speculators who capitalize on the openings rising within the segment amid this significant period.

Mr. Olatunde Amolegbe,  Managing Director of Arthur Steven Asset Management Limited, communicated positive thinking approximately the later deregulation of the oil and gas industry, anticipating potential development in venture inflows over the medium to long term. Whereas recognizing the benefits, he emphasized the requirement for an adjusted viewpoint, considering the potential challenges such as taking a toll expansion.

The expected posting of Dangote Refinery, Africa’s biggest single-train refinery, is anticipated to be a point of interest occasion, infusing noteworthy liquidity and drawing in both nearby and universal speculators. Mr. David Adonri, Executive Vice Chairman of Hicap Securities Limited, believes that the commencement of domestic crude oil refining and the listing of Dangote Refinery marked significant milestones for the Nigerian energy sector.

According to Victor Chiazor, Analyst and Head of Research at FSL Securities Limited, the long-awaited completion and operation of Dangote Refinery, coupled with the positive impact of subsidy removal, are expected to be game-changers for the Nigerian oil and gas landscape. He anticipates increased investments throughout the value chain, promoting market efficiency, attracting foreign investment, and encouraging exploration and production activities.

Despite potential challenges, Nigeria’s oil and gas division presents a compelling opportunity for financial specialists and partners in 2024.


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