From kidnappings and jihadist rebellion by Boko Haram to homicide by notorious “unknown gunmen,” the growing rate of insecurities and increasing political risk under the administration of President Muhammadu Buhari is causing more uncertainties in Nigeria’s energy sector, the economic heartbeat plagued with teething challenges.
An active oil and gas sector draws investments and acts as an economic enabler, creating jobs and improving the standard of living, but when oil exploration declines due to a lack of investment, economic growth is stymied.
While most investors agree good governance is the ultimate secret to securing Nigeria’s corporate existence, the country’s present political risk appears to be worsening, a situation marring the country’s investment climate similar to oil-producing countries such as Libya and Mozambique.
In Nigeria, analysts say the suspension of Twitter in Africa’s most populous country, two days after the social media platform deleted a tweet from President Muhammadu Buhari’s account for violating its rules, is not among a million and one respectable ways a government can react.
Nigeria’s increasing political risk is also coming at a time there is mounting global advocacy aimed at halting all-new Final Investment Decisions (FIDs) for fossil fuels, especially oil and gas, a scenario that may create serious hurdles for new fields development as over $150 billion worth of projects risk getting stranded in Nigeria.
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