Investor Presentaiton

At the beginning of 2006, production capacity was about 2.5 million barrels per day (bpd). Since that time, it has grown to about 3 million bpd and is set to grow further. Unfortunately, violence in the Niger River Delta has cut off about 600,000 bpd. Also, the lack of qualified technical staff is a constraint. kidnapping in the Delta has made recruiting expatriate staff increasingly difficult, especially for the oil services companies. We understand that the oil majors estimate that over a thousand positions are unfilled, slowing progress on new projects. There is however hope as the new administration is bringing a new focus and attention to the problems afflicting the Niger-Delta. (iii) Power Despite the numerous improvements in infrastructural development, embarked upon by government, high demand for the development of infrastructure particularly electric energy remains a major concern of investors. Inadequate infrastructure continues to militate against the growth of the private sector and imposes high transaction costs. Generation and distribution of electricity had continued to decline since 2004. Nigeria's power infrastructure is in dire straights. Fig: 4.13.1: Power supply 41

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