New challenges emerge Analysts see improved FX liquidity with higher oil export
But IOCs are still divesting says industry experts
By Emeka Anaeto, Business Editor, Udeme Akpan, Energy Editor, and Peter Egwuatu, Asst Business Editor
There are indications that Nigeria’s economy is reversing back to oil-sector led development while the gains made in non-oil sector is now reversing.
But feelers from the Organisation of Petroleum Exporting Countries, OPEC, have indicated that a fresh challenge to the nation’s new strength in the crude oil sector has started emerging.
Vanguard’s findings across performance benchmarks showing signs of rebound in the sector includes rising rig count, recoveries in several oil terminals, opening up of new oil wells as well as stable export prices.
Average rig count, an index of measuring activities in the upstream sector, rose year-on-year, YoY by 62 per cent to 15 between June and October 2023, compared to nine recorded in the corresponding period of 2022.
A month-on-month breakdown of the data compiled by OPEC for five months period covering June – October 2023 put Nigeria’s rig count at 16, 14, 18, 15 and 13 in June, July, August, September and October 2023, respectively.
This shows a significant improvement compared to the 11, 11, 10, 7 and 8, recorded in June, July, August, September and October 2022, respectively.