Nigerian Legislation To Drive Project Cargo Growth
Moves by the Nigerian government to tackle corruption and introduce liberalized regulation promise to attract international investment for new oil and gas infrastructure projects in 2016, analysts at Norwegian firm Wikborg Rein have predicted.
Newly elected Nigerian President Muhammadu Buhari replaced the entire board of the state-run Nigerian National Petroleum Corp., or NNPC, in response to endemic corruption in the organization.
His predecessor, President Goodluck Jonathan, kick-started the energy sector privatization process, but industry commentators have long highlighted the issue of corruption and the impact it has on foreign investment.
In response, Buhari has split the NNPC into two separate organizations and aims to bring greater clarity to the legal framework surrounding the Nigerian petroleum industry.
For project cargo carriers the sector is further complicated by the country’s local content and cabotage rules, which place strict ownership requirements on vessels transporting or trading in Nigeria.
“It is unlikely that any change will see an end or serious reduction in the local content requirements. For some time to come therefore owners of marine assets will have to continue to take account of the rather complex local content requirements when assessing business opportunities in Nigeria,” a spokesperson for Wikborg Rein said.
Photo credit: Cristiano Zingale
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