Oil and gas experts have said that a time of peak oil demand was approaching when Nigeria will be unable to sell its oil to the world.
The shocking statement was made at the ongoing 34th Annual Nigerian Association of Petroleum Explorationists, NAPE conference on Monday. During his presentation, Leader Sub-Sahara Africa Accenture Strategy Upstream, Timi Familusi, said the world’s peak oil demand period has been fixed between the next 15-20 years (2030-2040), saying Nigeria’s oil will receive no patronage from world market if it refuses to sell all its oil before the set date.
A peak oil period, as estimated by the World Bank, is when oil will become less valuable as a result of influx of the likes of electric cars, climate change, solar energy, wind and other renewable sources of energy taking over the market.
“The peak oil period has already been set for between 2030-2040, and if Nigeria is not careful, it will not be able to sell its reserved oil. This is no longer the era when our leaders decide to keep the oil in the ground because they want the younger generation to meet the resources. If we don’t explore our oil and sell it as fast as possible then, it will become useless very soon,”he said.
According to him, on the supply side, big oil has already disappeared because the market has been taken over by fast oil.
“Investors are no longer interested in big oil like the ones got from Nigeria’s deep water. What they want is fast oil like the Shale being produced by the U. S,” he said.
He explained that the market is not just about big oil but how quickly the oil can be explored for the market.
“Most investors are looking for small investment projects that will pick up quickly instead of long term projects,” he said.
He also said that between 2010 – 2014, 34 percent of Nigeria’s oil profits disappeared and keeps dropping, making the country the hardest hit with recession.
Familusi’s stance was corroborated by Chief Executive Officer, Lekoil, Lekan Akinyanmi, who said that the federal government needs to create a favourable business environment for investors to explore oil before the resources runs out of use. According to him, Nigeria’s tax and royalty rates are the highest when compared with other African countries.
In an illustrating chart, Nigeria’s tax ranked between 50-85% while its royalty rate was between 0-20%.
The likes of Namibia’s tax Versus royalty rate pegs at 35%/5%, Senegal 30%/5%, Mozambique 32%/6-10%, Liberia 30%/10%, Ivory Coast 25%/5%, and Ghana 35%/5-12%.
Challenges plaguing investors they listed as sanctity of contract, ease of doing business, transparency, comparative upstream fiscal regime, repatriation of funds and availability of data.
In conclusion, the 1st panel ruled that Nigeria’s Frontier basins are competing for capital with other African countries, saying that there is need for the government to give investors a friendly business environment to stay afloat.


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