Chinazor Megbolu |
The oil and gas companies in Nigeria have raked over N400 billion from the nation’s Capital Market.
Chief Executive Officer, Nigerian Stock Exchange (NSE), Mr. Oscar Onyema, explained the fund was raised across several asset classes using the platform in recent years.
In his address during a webinar on the oil and gas sector organised by the NSE, he noted the industry is the most critical in the nation’s economy.
According to him; “the oil and gas sector remains arguably one of the most critical sectors to the Nigerian economy.
” The challenges within the sector, however, present a backdrop for future opportunities for governments, regulators and operators to adopt innovation across existing verticals and pivot towards growth areas.
“The NSE on its part continues to provide a platform to access a global pool of capital, with issuers operating in the oil and gas sector raising over N400 billion across several asset classes in recent years.”
Onyema also declared that NSE has continued to partner with the relevant stakeholders towards providing the enabling framework by supporting diversification towards renewable energy, adding the exchange is also well positioned to facilitate needed capital formation.
Meanwhile, the Minister of State for Petroleum Resources, Dr. Timipre Sylva in his remarks, said the volatility in the energy sector caused by the Covid-19 pandemic, which led to the progressive decrease in crude oil price in 2020,has made it unavoidable for the country’s industry players to seek innovative solutions or quit for the serious business minded willing to do things differently.
Moreover, the Group Managing Director, Nigeria National Petroleum Corporation (NNPC), Mallam Mele Kolo Kyari, in his address listed the impact of the dual shocks of the Covid-19 pandemic and low crude oil prices on the nation’s economy.
Kyari,who was represented by the Group General Manager Finance, NNPC, Mrs. Rose Eshiett
said: “To reposition the oil and gas industry for sustainability post Covid, there must be collaboration across different dimensions.
“Government, industry players and particularly with the host community. Innovation will also play a crucial role in managing cost, improving efficiency and delivering the required cash flow for reinvestment and expansion”.
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