Yemisi Izuora
Seplat petroleum has signified more investment interest in Nigerias oil and gas sector, calling on government to encourage private sector investment by selling its stakes in joint ventures (JV).
Through Nigeria National Petroleum Corporation (NNPC) the government owns shareholdings in a number of joint exploration and upstream ventures with international oil companies.
Selling the stakes would help the government focus on areas like tax collection, while strong private sector involvement in industry would help spur economic growth, Seplat Chairman and co-founder Ambrosie Orjiako told Reuters.
“Collecting tax and focus on making sure that the industry grows, and when the industry grows it will create jobs and do something for the government,” he said, speaking on the sidelines on an investment conference.
“And the best way is to not necessarily to hold massive working interests in the JVs,” he said, adding Seplat would be interested in picking up some of the stakes, especially in the gas sector, if terms were right.
Seplat is focusing heavily on gas investment, drilling and acquisitions, aiming to increase gross output from around 120 million standard cubit feet (scuf) per day to 400 million scuf by 2017.
Orjiako added the new government should scrap fuel subsidies and do more to diversify the economy.
“Subsidy removal should happen now,” he said. “The reality is that the subsidy is not trickling down effectively. What we expect government to do is take a bold steps, demonstrate good governance, invest in infrastructure, justify the taxes.”
Buhari’s predecessor, Goodluck Jonathan, tried early in office to scrap subsidies, but the move met an angry reaction and lead to eight days of nationwide strikes.
Orjiako said Buhari could have success, if his government managed the change properly. “I believe when people become more aware of what the subsidy is, they will clamour for its removal,” he said.