Nigeria: Ducroire Delcredere's analysisNigeria is the largest oil and natural gas-producing country on the African continent, and its economic health depends mainly on the energy sector. Since 2006, an increase in thefts, armed attacks, and sabotage to oil fields have been the root cause of national oil output falling to 1.5 million barrels a day last June. The financial consequences of this fall are nonetheless being cushioned by the dramatic rise in world oil prices. In order to be able to maintain supply, more offshore oil deposits are to be exploited. These are less susceptible to criminal activity than ‘onshore’ fields. To ensure long-term prosperity, Nigeria is also going to need to develop new economic activities. Ducroire Delcredere regards Nigeria as the best performer in West Africa, after Ghana. For most investors, the enticing prospects of profits in the energy sector and the development of new offshore oil deposits are the main incentives for them to remain active in the region. Furthermore, liquidity and economic fundamentals in Nigeria are excellent. However, the lack of security and the tense political situation in the Niger Delta, together with the considerable corruption and relatively opaque and uncertain legal framework are still restraining factors. Click here to learn more.
No comments:
Post a Comment