Swot analysis of the oil industry in nigeria

It examines key drivers of growth and future prospects, including the macroeconomic situation, the level of development and potential for growth of the sector, the commercial initiatives of major players, government policy and the regulatory environment. Leading companies are analysed, with key performance indicators for major banks covering asset quality, earnings and profitability, capital and leverage, and funding and liquidity, as well as premiums written for insurance companies. Target business opportunities and risks in Nigeria through our reviews of latest industry trends, regulatory changes, and major deals, investments and macroeconomic developments. Exploit latest competitive intelligence on your competitors, partners and clients via our Competitive Landscape Analysis.

Swot analysis of the oil industry in nigeria

The research went further to pin-point possible areas of opportunities created by this oil industry sector in respect of diversification into manufacturing, agriculture and tourism so as to reduce our import bills and be less dependent on imports.

Finally the threats against the oil industry which included depletion of oil reserves, plans to develop alternative energy resources by advanced nations, the rising fossil fuel prices and the world financial crisis calls for urgent concern and action.

A SWOT ANALYSIS OF NIGERIA’S OIL INDUSTRY | UCHENWOGWUGWU

The study therefore aims at providing a valuable insight and creating awareness which will guide our policy makers in guaranteeing the achievement of millennium economic development goals. Nigeria, oil industry, opportunities, strength, threats, weakness 1.

Introduction Over the past 15 years, the Nigerian petroleum industry has grown by leaps and bounds. Both production and exports have increased enormously since commercial production began in Crude oil output increased from a meretonnes in to At the same time, crude oil reserves have increased significantly from a mere 17 million tonnes in to 4, million tonnes inwhile proved and probable reserves in the fields already discovered are now of the order of 7, million tonnes, Madujibeya, This proven reserve is contrary to the findings of the Statistical Energy Survey that proved the oil reserves of Nigeria- Wikipedia Free Encyclopedia, The Nigerian petroleum industry which encompasses the process of exploration, extraction, refining, transporting and marketing of petroleum products, has been a subject Swot analysis of the oil industry in nigeria considerable interest, debate and even controversy for decades.

For instance oil has been associated with economic booms and busts. Despite these negative consequences, we cannot rule out the fact that the production and marketing of oil have also generated a lot of benefits which can be appropriated to fast track development, and provide remedies against those negative externalities or consequences.

The rest of this paper is arranged thus: With the establishment of the NNPC, joint venture agreements on production have been signed with the multinational oil companies Okonkwo, These have gone a long way in stimulating healthy competition with the multinational oil companies. NNPC also plays a role in regulation, transportation and refining of oil resources.

Given the dominant position which petroleum now occupies, it is right and proper that Nigerians should take effective part in its development and managerial control.

Doing Business in Nigeria - PESTEL Analysis

Experience in other oil producing countries like Venezuella and Iran shows that such a national oil company has a number of advantages. In the first place, it provides a mechanism through which local people can be effectively exposed to the technical, managerial, commercial and other challenges of the oil business.

According to him, such valuable insight is generally difficult to gain in the framework of a foreign multinational corporation, because local people working for such corporations are usually very far away from the real centers of decision making which are located in London, New York or Paris.

Swot analysis of the oil industry in nigeria

On the other hand, the dominant role that oil plays as the most important source of energy in the world is an added advantage to the Nigerian oil industry. Various efforts intensified by the advanced nations to invent alternative renewable energy resources have been partially successful.

Lynley in the United Nations report have projected that the renewable energy resources comprising of wind, solar, geothermal power, biomas fuel, hydropower and power harnessed from oceanic waves have the potential to outstrip energy demand by and replace fossil fuel as a power source and can grow 20 — fold over the next decade, but in reality, only 2.

All these information, without any doubt proves that it is going to be a very costly venture that can militate against using alternative energy resources and make the use of fossil fuel a continuous process all over the world. This is in an agreement with the views of Madujibeyathat it will not be possible in the near future to develop alternative energy as a result of the huge cost involved.

The excellent quality of the Nigerian oil is also a plus to the Nigerian oil industry to stand a better chance in competing favorably for markets in the world oil market.

Nigerian crude oil is a high quality, light low sulfur grade referred to as sweet, which is highly prized by oil consuming nations because of its high gasoline content and relatively cheap processing costs www.

This concept of Dutch disease refers to an economic problem whereby important sectors of an economy lag behind as a result of over dependence on one particular sector.

This also reinforces the undue dependence on the revenues from oil and makes the economy vulnerable to external price shocks.

Nigeria Banking & Financial Services Report The report includes full analysis of industry trends and prospects, national and multinational companies and changes in the regulatory environment.

Okonkwostated that contrary to the hopes and expectations that greeted oil discovery, the non-oil export sectors of the economy, more specifically the manufacturing and the agricultural sectors have been declining consistently with further increase in oil export.

It is not a healthy practice in the sense that the most important critical sectors like manufacturing and agriculture are often neglected.

Swot analysis of the oil industry in nigeria

It is a fact that petroleum industry is the largest industry in the country and main generation of GDP in the country www. At present, petroleum remains a typical enclave industry whose contribution to the Nigerian economy is limited largely to its contribution to government revenue and foreign exchange earnings World Bank Report, Many investment projects were undertaken without sufficient attention being paid to their economic viability.

The Petroleum Revenue Special Taskforce report is one of several commissioned by the government and follows and outcry after a parliamentary investigation uncovered a multi-billion fuel subsidy scam. The investigation followed after angry nationwide protests in January when the government tried to remove fuel subsidy BBC News http: It used to be tens of millions of naira and occasionally, hundreds of millions of naira and when a corruption incident amounting to a billion of naira was mentioned, we were stunned, disgusted and spoke about it intensely for weeks.

Now misappropriation of public funds in Nigeria is recorded in billions and trillions of naira, such that cases involving mere millions no longer elicit media scrutiny or a shocked reaction from the public.urbanagricultureinitiative.com Analysis of the Nigerian Business Environment 4 SWOT Analysis External ValueCreating (Destroying) Factors Internal Value-Creating (Destroying) Factors Opportunities Threats Strengths Weaknesses SWOT Analysis Nigeria.

Nigeria Oil and Gas Strategic Analysis and Outlook to Supply, Demand, Infrastructure, Investment and Infrastructure, Investment and Market Shares. Nigeria Oil and Gas SWOT Analysis .

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Nigeria as a country has been a mono-economy with total dependence on oil revenue. With the current glut in the oil market, the revenue coming to the country has come down drastically.

Because Nigeria operates a federalism system of government with three tiers of government namely; Federal, States and Local Governments, revenue has to be shared across the three tiers of government.

Another major threat is Ghana which has just discovered fuel on its soil, if Ghana build a refinery with new technology and international standard it will increase the threat of other oil companies breaking a deal to extract and import crude to Nigeria.

The main purpose of the SWOT analysis is to turn weaknesses into strengths, turn strengths into opportunities, use our strengths to profit from our opportunities. Nigeria is a member of the Commonwealth of Nations, the African Union, OPEC, and the United Nations.

PESTEL Analysis, SWOT Analysis and Risk Analysis of Nigeria Nigeria PESTEL Analysis This report covers Nigeria's PESTEL (political, economic, social, technological, environmental and legal) analysis. ABSTRACT: The study centered on the comprehensive evaluation of the Nigeria’s oil industry with a view of presenting an in-dept analysis of this crucial sector using the Strength, Weaknesses.

A SWOT ANALYSIS OF NIGERIA’S OIL INDUSTRY | UCHENWOGWUGWU