COVID vaccines: How does this impact Nigeria’s oil & gas sector?

The COVID-19 pandemic has posed significant challenges for the global oil and gas industry, including Nigeria. However, there is a sense of hope on the horizon as countries roll out COVID-19 vaccines, leading to an uptick in oil prices in the past six weeks. Funke Taylor, Founder and CEO of The Energy Axis, joined CNBC Africa to discuss the outlook for Nigeria's oil and gas sector. Taylor highlighted the impact of vaccine availability on driving increased demand for fuel and projected continued price increases in 2021. While caution is still necessary due to the ongoing pandemic, the vaccine rollout is expected to stimulate more activities in the industry. As companies navigate these uncertain times, technology is playing a crucial role in reshaping the Nigerian oil and gas space. The need to reduce operating costs and adapt to the new normal has pushed companies to embrace digital solutions to enhance efficiency and transparency. With issues such as disruptions, security challenges, and vested interests plaguing the industry, technology offers a way to streamline operations and improve accountability. Taylor emphasized the importance of companies adopting digitization to track products from loading to delivery, thus minimizing opportunities for interference and enhancing overall transparency. Looking ahead to 2021, Taylor noted a trend of increased investments and collaborations in the industry. Companies are diversifying their portfolios and exploring opportunities beyond traditional production, including investments in gas infrastructure and modular refineries. Despite economic concerns and funding challenges, optimism remains high as industry players look towards a future of innovation and growth.