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Friday, 15 August 2014

Oil and gas to boost Nigerian growth

Since the oil and gas sector is expected to grow by 2,3% per year at best, its success is still vital to the Nigerian economy, notes a report by McKinsey Global Institute. With the right reforms, Nigeria’s renewal: Delivering inclusive growth in Africa’s largest economy reports that liquids production could increase from 2.35 million barrels a day on average to a new high of 3.13 million barrels a day by 2030, adding US$22-billion dollars to GDP by 2030.

Natural gas output could grow by as much as 6% per year, adding US$13 billion dollars to GDP by 2030. In total, the report says that the oil and gas sector has the potential to contribute US$108 billion dollars per year by 2030, up from US$73 billion dollars in 2013. But, this assumes the sector overcomes obstacles such as security and can attract fresh investment.