Investor Presentaiton
FOSSIL FUELS IN THE CONTEXT OF NIGERIA'S DEVELOPMENT
The oil and gas industries remain essential to Nigeria's efforts to implement the UN's Sustainable Development Goals
LACK OF ECONOMIC DIVERSITY FORCES OIL DEPENDENCE
> Nigeria's lack of economic diversity and low tax revenues force
heavy reliance on revenues from oil extraction
> Fossil fuels account for nearly 10% of Nigeria's GDP (Source: NNBS)
> More than 65% of government revenues come from oil (Source: EITF)
> These revenues support all government activities including education,
healthcare, infrastructure and other economic and social development
> Nigeria's 2020 Federal budget is $35bn
> Oil and gas also generate significant FX benefits for Nigeria, contributing
90% of exports (Source: Trading Economics)
NIGERIA'S OIL EXPORT REVENUES ($BN)
60
50
41.2
38.0
40
27.3
30
20
10
0
2015
2016
54.5
45.1
2017
2018
2019
GAS PROVIDES A TRANSITION PATH FOR ENERGY
> Gas has the most potential to fulfil UN Sustainable
Goal No 7 to provide universal access to energy by
2030
> Massive expansion of gas-for-energy will significantly
reduce Nigeria's use of home and business generators
fuelled by higher-emission diesel or petrol
> Reducing diesel use will free up personal and business
wealth for more productive uses in Nigeria's economy,
with multiplier effects on GDP
> Increased use of gas at grid level will cut emissions and
particulate pollution compared to equivalent diesel
> Development of LPG market will reduce Nigeria's
extensive use of biomass for cooking, thereby
achieving health and environmental benefits
> Nigeria starts from low base of CO2 emissions
per capita
> Ideal transition pathway to longer-term renewable
future including solar
13
Source: OPEC 2020 Annual Statistical Bulletin
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