There are indications that the discovery of crude oil in Ghana and other new regional producers in Africa will have a positive effect on Nigeria, even as some operators have said that the discovery will further put a stop to adulteration and diversion of petrol which has characterized petroleum importation business in Nigeria.
There are indications that the discovery of crude oil in Ghana and other new regional producers in Africa will have a positive effect on Nigeria, even as some operators have said that the discovery will further put a stop to adulteration and diversion of petrol which has characterized petroleum importation business in Nigeria.
Even though the Director General of the Budget Office of the Federation, Mr. Bright Okogu recently announced that the discovery alongside the discovery of Shale gas in the United States will lead to N5.2trillion revenue loss for Nigeria on an annual basis, downstream operators have said that it will lead to availability of products for Nigeria.
Depot Manager at Capital Oil and Gas tank farm, Mr Goffrey Okorie in a chat with Shipping Position Daily last week pointed out that crude oil discovery in other African countries like Ghana, Ivory Coast, Liberia and Uganda cannot affect Nigeria negatively because the country still holds an important position in OPEC.
He pointed out that the volume discovered in these countries, especially Ghana, cannot be compared to the crude available in one state in Nigeria.
“Other African countries cannot have much volume like us, even OPEC so much rely on Nigeria, the fact that Ghana or Liberia discovered oil does not affect our transit, we determine the international price because our oil shakes the world” he said.
A marketer, Mr Olanife Adeoye on his part said that, over the years, products meant for local consumption in Nigeria are being diverted to neighboring countries like Benin, Togo, Liberia and Ghana and that discovering crude in these countries will only put an end to this illegal practice.
“To some extent, it will reduce the diversion of products meant for local consumption in Nigeria that are being diverted to these countries”, he argued.
According to him, local oil smugglers around Nigerian borders like the Seme border will also run out of business, because Ghana and the other neighboring countries will now have to refine their own product and sell at a local price lower than what they get from the Nigerian smugglers.
He explained that the reason why scarcity is often experienced in Nigeria is because, importers currently have contracts with the government to supply petroleum product to these neighbouring African countries and that they usually divert the ones meant for Nigeria to these countries and at the same time collect subsidy from the Federal Government.
“Some of these African countries lack the financial muzzle to import to their country, which is why they rely on Nigeria; they see us as their big brother”.
However, the DG of the Budget Office of the Federation, Mr. Bright Okogu in his presentation at a recent conference said that the competition against Nigeria’s oil and gas has intensified with the discovery of Shale gas in the United States and that US crude oil imports from Nigeria has dropped to 3000,000 barrels per day from over 1.1million barrels per day.
He also said that regional producers like Ghana, Ivory Coast, Liberia and Uganda are now adding to the supply.
He said that the discovery is beginning to take a toll on Nigeria’s oil and gas in the international market, thus making it stiffer with the discovery of mineral resources in countries that use to depend on crude oil imports from Nigeria.
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