For Nigerian Oil industry to impact positively on the economy, Post Covid-19, there most be adequate funding from mixed sources. Ms Ronke Onadeko, Principal Consultant, DRNL Consult Limited, disclosed this to financial journalists, during a Webinar lecture in Lagos.
Onadeko, while responding to questions, if the operators in the Oil sector can leverage on the capital markets to raise fund, said the capital markets alone cannot handle it, a combination of capital and other sources of funding are required.
Speaking on the topic “Financial Impact Of The Crashing Oil Price On Nigeria’s Economy. Our Economy, Revenue, Budget and Financial Well Being”, Noted that amidst the negative impact of the pandemic on Nigeria’s Economy, there are some opportunities that it presents to the Oil industry and the economy at large.
She pointed out that one of the challenges the Oil industry will face in Nigeria is funding, because the local Banks have reached their single obligor limit, which has made lending to the sector impossible.
Adding that many of the Oil companies that borrowed money are finding it difficult to repay because of the crisis in the sector.
On the way forward, she explained that there is a need to restructure the Oil sector, to be attractive to investors.
She said this will open up the sector and encourage competition among players, which will bring about price reduction for consumers in the long run.
Stressing that Nigera will witness some positive changes in the sector before the end of 2020.
The virtual training was organized by the Facility for Oil Sector Transformation (FOSTER) in partnership with the Finance Correspondents Association of Nigeria (FICAN).