Nigeria, as reported last week, is on a drive to reform its energy sector. When this happens, the country’s GDP is expected to overtake South Africa in 2014 according to the Nigerian National Petroleum Corporation. Nigeria currently earns US$235 billion as her GDP and it expected to increase between 2013 and 2014 when the country’s energy sector is fully deregulated.

The Executive Director (Corporate Planning and Strategy) of NNPC, Dr Timothy Okon said the energy sector is the biggest in Africa and all industry stakeholders should play a pivotal role to ensure that the sector is fully reformed. This will allow more jobs to be created.

Oken continued by saying that the country’s economy is around 5% the size of the US and to increase the country’s output, reform was vital. Here the energy sector was vital because the country has abundant economic resources which can translate into economic development, if reformed and maintained. This will also allow for better participation which will increase the return.

Infrastructure, such as pipelines for the transport of crude oil, is in place but needs good maintenance and some upgrades. Reform would address this issue. More refineries however, would not bring down the cost of petroleum significantly but, it will encourage more investment.

Nigeria is looking at hydro power and natural gas as energy alternatives to oil.

Source: allAfrica.com