Sustained decline results in fiscal, economic challenges – LCCI

The Lagos Chamber of Commerce and Industry (LCCI) has stated that the sustained decline in global oil prices since 2014 has put the nation in a difficult position and consequently led to various fiscal and economic challenges such as the drop in foreign earnings, decline in foreign reserves, financial bailout for many state governments and unstable business environment.

Dr. (Mrs) Nike Akande, President, LCCI disclosed this recently, in Lagos during the Business Clinic organised by the LCCI Petroleum Downstream Group, with the theme: “Nigerian Petroleum Products Pricing and Forex Liberalisation: Implications and Sustainability.”

She said, “As we all know, the sustained decline in global oil prices since 2014 has put the nation in a difficult position and consequently led to various fiscal and economic challenges such as the drop in foreign earnings, decline in foreign reserves, financial bailout for many state governments and unstable business environment.

“Over the years, the nation’s petroleum industry has witnessed several setbacks such as: shutdown of domestic refineries, vandalisation of pipelines and recurring scarcity of products.  There have been several discussions about reforms in this sector. The good news is that remarkable progress has been made with the recent pricing reforms.  The state of the sector has a significant bearing on the economy because we need energy to power this economy. It could also be a major driver of economic diversification efforts.

“I have no doubt that this forum would provide a platform for all stakeholders in the downstream petroleum sector to deliberate on critical issues affecting investments and operators in the oil and gas industry and stimulate ideas for sustainable growth.  This has become necessary in the light of recent policy developments and the emerging context for business operations.”