By Omoh Gabriel
President, Lagos Chamber of Commerce and Industry, Mr. Goodie Ibru, weekend, warned Nigeria of the problem posed by the impending global oil glut to the economy.
In a statement, he said: “The evolving global energy market dynamics suggest an urgent need to take a sober look at the Nigerian oil and gas sub-sector in particular and the energy sector in general, especially given the importance of the sector to Nigerian economy.
“Despite the declining contribution to the nation’s Gross Domestic Product, GDP, which is currently put at 14.7 percent, the extreme dependence of government finances and external trade balances on proceeds from the sector exposes the nation to significant risks from oil price and production shocks.
“There are profound concerns over dwindling performance of the sector, which has been attributed to the structural gaps in its regulatory, fiscal and business practices that have supported high inefficiencies.
“Unfortunately, the Petroleum Industry Bill, PIB, which was adjudged the most significant attempt to address these challenges through the reform of the governance and business structure of the sector as well as resolution of fiscal issues, is yet to see the light of the day.
“The risk of a glut in the global oil market is potentially detrimental to Nigeria.”