The expected reform will affect the downstream segment in such a way it will become more competitive and more liquid. In her affirmed statement she said “We are going to see more deepening in its value chain. We will see international and local companies coming together to invest in refineries.Ms. Aderonke Onadeko, the Principal Consultant with DRNL Consult Limited
Ms. Aderonke Onadeko, stated this during a virtual conference organized by the Facility for Oil Sector Transformation (FOSTER) in partnership with the Finance Correspondents Association of Nigeria (FICAN) in Lagos, with the theme: “Financial Impact of the Crashing Oil Price on Nigeria.”
Onadeko , is the Principal Consultant with DRNL Consult Limited, specialized in the energy and power consultant to the Governor of Ogun State, FOSTER (Facility for Oil Sector Transparency) and a consultant to International banks and clients in the energy, power and oil and gas sector. She is the principal consultant at DRNL Consult Limited, UK and Delt-R Company Limited, Nigeria. She is on the board of several private and publicly quoted upstream and downstream companies
Speaking on the topic “Financial Impact Of The Crashing Oil Price On Nigeria’s Economy. Our Economy, Revenue, Budget and Financial Well Being”, she noted that despite the negative impact of the COVID-19 pandemic on Nigeria’s Economy, there are some opportunities among which include the Oil industry and the economy at large.
However, she pointed out that one of the challenges the Oil industry will face in Nigeria is the source of funding, because it seem the local Banks have reached their single obligor limit, which has impacted on lending to the sector impossible.
In her lamentation statement she, if we had had adequate local refining capacity in Nigeria, now that the price of crude oil has dropped internationally, Nigeria will switch to refining more petroleum products locally and supplying them to the rest of West Africa sub-region and Africa at large,” she added.
Onadeko, unforeseen the implication of the government’s announcement that the downstream segment would be deregulated is that it should hands off the importation and the pricing of the sale of petroleum products in the country.
She assured that the reform would make it more competitive and attractive to foreign investors. According to her, there would be a lot of policy changes in the sector, which will lead to players embracing mergers and acquisitions.
The Principal Consultant with DRNL Consult Limited in the words of advised to oil operators said if they can seek alternative funding in the Oil sector through the capital markets to raise fund, added that though the capital markets alone cannot handle it, a combination of capital and other sources of funding are required, she added.