The Nigerian National Petroleum Company Limited (NNPCL) reportedly allocated a substantial N267.98 billion for security expenses over 16 months, reflecting the severity of the security challenges faced by the industry.
As the country grapples with worsening insecurity, numerous oil companies have issued security guidelines to their workers. There are growing concerns that international oil companies and independent firms may face production disruptions due to the increasing security burden and associated budget constraints.
The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, highlighted the challenges faced by businesses operating in Nigeria. He noted that when foreign businesses enter the country, they factor in an additional $30 to every $100 cost due to perceived high risks associated with asset exposure.
Kyari emphasized the need for a supportive fiscal environment, including laws, taxation policies, and dividend collection mechanisms, to attract and retain foreign investments. The prevailing security situation poses a dual challenge for oil companies, impacting both operational costs and overall investment attractiveness.
Source: Parrot News