Rising global oil prices present revenue opportunity for Nigeria — Abe

By Henry Umoru

ABUJA — Former Senator representing Rivers South-East, Magnus Abe, has said the recent surge in global oil prices presents both challenges and opportunities for Nigeria, noting that the country stands to increase its earnings if it strategically leverages the situation.

Abe spoke on Monday with journalists after appearing before the Senate Committee on Petroleum Resources (Upstream) for screening as Chairman of the Board of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

He explained that the rise in oil prices, linked to tensions involving Iran and the United States, should encourage Nigeria to strengthen its energy sector, particularly in gas development and marginal oil field investments.

According to him, although the global crisis may lead to higher fuel prices and economic pressure, it could also translate into increased national revenue from oil sales.

“This is a very difficult time for the entire world. It is not just a Nigerian challenge; it is a global challenge,” Abe said.

“You must look at the balancing act. Prices will definitely be affected, but revenues from our oil sales will also improve. There will be some measure of balance in what will happen.”

Abe, who served two terms in the Senate and is a former board member of the Nigerian National Petroleum Company Limited (NNPCL), was asked to “take a bow and go” during the screening in line with the Senate’s tradition for former lawmakers appearing for confirmation.

The committee, chaired by Eteng Jonah Williams, screened nominees forwarded by President Bola Ahmed Tinubu for appointment as chairman and non-executive commissioners of the commission.

Abe, who also serves as Chairman of the National Agency for the Great Green Wall, said rising oil prices could make previously unprofitable marginal oil fields viable while also creating opportunities for Nigeria to expand its gas production.

“If the price of oil is going up, it gives us an opportunity to invest in marginal fields that otherwise would not have been profitable,” he said. “If gas supplies are disrupted globally, it also gives Nigeria the opportunity to optimise its gas production, which will create jobs and new opportunities.”

He expressed appreciation to President Tinubu for nominating him to serve on the board, describing the appointment as an opportunity to contribute to the administration’s Renewed Hope Agenda.

Abe added that the incoming board would work with industry stakeholders to strengthen the regulatory environment in the petroleum sector, noting that the framework provided by the Petroleum Industry Act offers solutions to longstanding issues such as oil theft and host community agitation.

“With the Host Communities Fund, the communities themselves are now stakeholders in production,” he said.

Also speaking during the screening, a nominee for non-executive commissioner of the NUPRC board, Paul Jezhi, identified discrepancies in crude oil measurement at custody transfer points as a persistent challenge in the sector.

He said the deployment of modern metering technology could significantly reduce such discrepancies.

“The discrepancies in crude oil measurement at custody points have been a long-time issue. But modern meters can now record measurements within a very narrow margin, which will help address the problem,” Jezhi said.

He also recommended the use of drones and satellite technology to strengthen surveillance against oil theft and pipeline vandalism in the Niger Delta.

President Tinubu had earlier written to the Senate seeking confirmation of 21 nominees for the boards of the Nigerian Upstream Petroleum Regulatory Commission and the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

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