Nigeria signs 7 regulations to address oil theft, measurement

Over the years, Nigeria has been plagued by issues related to inaccurate measurement of crude production and oil theft in the Niger Delta region. In an effort to combat these challenges, the country recently signed 7 Upstream Petroleum Measurement Regulations. These regulations, designed to improve measurement accuracy and curb oil theft, were welcomed by industry experts and stakeholders. Johnson Chukwu, the CEO of Cowry Asset Management, shared his insights on the new regulations and the broader infrastructure challenges facing Nigeria. Discussing the significance of the regulations, Chukwu highlighted the historical struggle faced by the country in accurately measuring crude production and exports. He emphasized the need for a reliable measurement system to combat losses due to theft and miscalculation. While acknowledging the positive step taken with the new regulations, he also expressed concerns about the lack of political will and corruption that have hindered effective implementation in the past. Chukwu also stressed the importance of deploying state-of-the-art technology, similar to what Saudi Aramco utilizes, to enhance measurement and monitoring processes. He underscored that technology solutions are readily available and stressed the need for leadership commitment to adopt and implement these tools effectively. Transitioning to the topic of infrastructure development, Chukwu addressed the staggering financial requirements estimated at $150 billion annually over a 10-year period. Despite the immense funding needs, he raised concerns about the government's limited capacity to finance infrastructure projects given existing revenue challenges and mounting debt burdens. Chukwu pointed out that a significant portion of last year's infrastructure spending was debt-funded, underscoring the urgent need to diversify funding sources and attract private sector investments. He emphasized the critical role of private capital in bridging the infrastructure gap and fostering economic development. Chukwu called for a shift in strategy towards leveraging private sector participation in infrastructure projects, particularly in commercially viable ventures, to accelerate progress. In conclusion, the interview shed light on Nigeria's efforts to address pressing issues in the oil and gas sector and confront the infrastructure deficit. While the new regulations signal a step in the right direction, sustained political will and innovative financing mechanisms will be vital in realizing the country's development goals and promoting sustainable growth.