Nigeria: Oil vs. Renewable Energy Sector
The collapse of oil prices could prove to be more of a boon than a bane for Nigeria. That may not be far-fetched, given that the global price dropped below $35 per barrel range last year.
Like most oil producing nations, Nigeria has not been shielded from the impact of failing prices. The economy has been shaken by devaluation of the naira currency, low employment opportunities, job cuts, inflation, and project delays in the oil and gas sector. Despite these numerous problems, a surprising number of economists and business owners see a golden opportunity for diversifying Nigeria’s economy and reforming its public finances.
“Perhaps, more attention will be paid to agriculture, gas and solid minerals,” said Kayode Omosebi, an energy and industrial analyst with United Capital Plc., a financial and investment management company based in Lagos. Omosebi says some oil companies have started diversifying into other sectors. That in turn is increasing the pressure on the government to invest in the power sector, which remains a major barrier to economic growth. Click here to read the full article