Nigerian Oil & Gas Industry Content

This assignment focuses on analyzing the Nigerian oil and gas industry, specifically exploring its growth, challenges, and the significance of 'Nigerian Content'. It requires an assessment of the industry's economic impact, regional implications, and the potential benefits and drawbacks of local content policies. The analysis should draw upon academic research, reports, and relevant data to provide a comprehensive understanding of this vital sector for Nigeria's economy.

Running head: RESERACH PROPOSAL
RESERACH PROPOSAL
A critical analysis of the impact of economic recovery on the oil sector in Nigeria
Name of the Student:
Name of the University:
Author Note:

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Contents
Part 1: 2
1. Field of research: 2
2. Source of secondary data: 2
3. Research question: 2
4. Proposed search terms: 3
5. Five articles: 3
Part 2: 4
1. Literature Review 4
1.1 Understanding the present scenario of the oil and gas industry in Nigeria: 4
1.2 Impact of economic condition of a country on the oil and gas industry: 4
1.3 Economic recovery in Nigeria in last decade: 6
1.4 Impact of economic recovery in Nigeria over oil and gas industry: 7
2. Focused aim of the research: 7
3. Research question: 7
4. Proposed methodology of the research: 8
References: 10

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Part 1:
1. Field of research:
“A critical analysis of the impact of economic recovery on the oil sector in Nigeria” has
been selected as the topic for the research. As commented by Perrons and Jensen, (2015), the
economy of the oil rich countries like Saudi Arabia and Nigeria is depended on the oil and gas
sector of the country. Therefore, considering the present economic situation and predicting the
future scenario is equally important for an oil rich country like Nigeria. Being a student of
Petroleum Engineering Management the field of research is related to my profession as it
discusses the factors that affect the petroleum industry of Nigeria.
2. Source of secondary data:
http://www.gate.iitg.ac.in/Syllabi/PE_Petroleum_Engineering.pdf
The article from provides the basic idea of the various factors that impact the oil and gas
sector in a country. Considering the topic of discussion, the impact of economic recovery has
helped to strengthen the oil and gas sector. Nigeria has also experience long years of recession
that has resulted in the contraction of GDP (Abuja, 2017). In the recent time, when there has
been positive impact over public institution and governance, the economy of the country has
improved and with it the oil and gas sector.
3. Research question:
Q. How the economic recovery in Nigeria has improved the oil and gas sector of Nigeria?
Q. What are the factors that affect the oil and gas sector of Nigeria?

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Independent variables: Economic recovery in Nigeria, Factors affecting oil and gas sector of
Nigeria
Dependent variable: Oil and Gas sector of Nigeria
4. Proposed search terms:
1. The petroleum industry of Nigeria
2. Factors influencing the petroleum industry
3. The present economic situation in Nigeria
4. Impact of economic recovery on the oil sector in Nigeria
5. Positive impact over public institution and governance on economy of Nigeria
5. Five articles:
1. Development of the non-oil sector in Nigeria: Challenges & lessons for less developed
countries.
2. Wireless sensor networks based pipeline vandalisation and oil spillage monitoring and
detection: main benefits for Nigeria oil and gas sectors
3. Nigerian Content Development in the Oil and Gas Sector: The Role of the Nigerian
Academia.
Findings:
It is a clear understanding that all the developed and the developing countries are largely
depended on the oil and gas sector for the supply of their energy (Sola & Joachim, 2016). It has
been evident that there have been many reforms in order to diversify the economy of the country
and break out of the boom and bust cycle (Idachaba, 2017).

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Part 2:
1. Literature Review
1.1 Understanding the present scenario of the oil and gas industry in Nigeria:
Nigeria has been found to struggle with the oil refineries and other petroleum related
issues since a long time. There have been many opportunities available for this oil rich country to
brighten its future in the oil and gas sector (Abuja, 2017). There are more challenges that the
country is facing in terms of the sustainability and environmental issues. It is the African country
that has brought shine and limelight in the economy of the country. It has been found that in spite
of the economic instability and recessions around the globe there has been a significant
improvement in the oil sector of the country. The reason behind this could be determined as an
oil rich country and the global supplier of oil and gas. 30% of the oil and gas reserve is found in
Nigeria and the country ranked eighth in OPEC’s share (Appiah-Adu & Sasraku, 2016).
1.2 Impact of economic condition of a country on the oil and gas industry:
Although it is a less acknowledged fact, however, it should be noted that the economic
condition of a country plays an integral role in determining the growth of the oil and gas sector
of the country. First of all, it is a well-known fact that the oil consumption of the residents of a
country determines the growth of the oil and gas sector in the country (Henry & Henry, 2015). In
case, a nation is economically strong, there would be greater demand for and consumption of the
oil and natural gas, and this would lead to the growth of the oil and gas sector. However, at the
same time, it should be remembered that the undeveloped economy can also at times facilitate
the growth of the oil and natural gas industry (Munasib & Rickman, 2015). For example, Russia
is a poor and under-developed nation, and hence the inhabitants of the nation nor had insulations

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not thermostats. Under communism, most of the people would open windows and doors for
managing the interior temperatures. Since Russia has not been able to make an efficient use of
energy due to lack of economic growth and socio-economic growth, its resources remain
underutilized. Hence, this would facilitate the growth of a new oil and natural gas industry
(Yusuf et al., 2014). More than often, the economically undeveloped countries have not fully
explored or exploited the oil and gas reserves, and hence there are greater prospects in such
countries.
The economic growth of a country plays a significant role in determining the supply of
oil and natural gas in the country. Greater economic growth entails greater demand for oil and
natural gas that makes the sector of a specific country highly conducive for investment. Rapid
economic growth is leading to greater outputs, which in turn is increasing the demand of oil for
production and transportation (Saboori et al., 2014). There is no gain stating the simple fact that
with rising income levels, the national demand for automobile in a country will always increase,
leading to the growth of the oil and gas sector. In absence of proper demand, or supply exceeding
the demand, there would be no possibility of growth (Idachaba, 2017). Again, at the very same
time, it should be noted that although the nations which are economically underdeveloped have
greater prospects, as most of the resources remain under-utilized, the economical backwardness
can also challenge and impede the growth of the industry (Alshehry & Belloumi, 2015). In this
connection, one can refer to Africa, which has huge resources facilitating the growth of oil and
gas sector, and yet the problem of poor infrastructure, unavailability of skilled workforce and
uncertain tax framework have created financial burden for the oil and gas sector of the country.

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1.3 Economic recovery in Nigeria in last decade:
Although the strong economic crisis has been impeding the economic growth of Nigeria,
in the last decades, various economic plans have been formulated as well as implemented that
considerably helped the nation combat its economic crisis, restore economic growth, ensuring
sustained inclusive growth of the nation (Dobbs et al., 2014). Although recently Nigeria was
found to encounter economic downturn, economic growth is forecast to return into positive
territory in 2017. This is especially expected to return largely on the back of recovery in the oil
sector as the Nigerian government has recently intensified efforts for restoring peace and
economic stability in the Nigerian Delta, while also improving its Joint Venture relationships
with a variety of international oil companies (Chete et al., 2014). At the same time, it should be
noted that strong growth in the agricultural sector still continues in Nigeria.
The absence of infrastructure has been a major problem impeding the growth of Nigerian
oil and gas sector. However, under the economy recovery plan, the country has made huge
investment for improving the national infrastructure, as a result of which the roadways, railway
systems and electricity system have largely improved, facilitating foreign investments. The
robust GDP growth of Nigeria is indeed admirable, as it has soared up to 6 to 7% in the period
between 2010 and 2014 (Nwapi, 2015). However, the unemployment rate is equally high as it is
approximately 45.65%, and yet however, different skill development programs have been
initiated by the Nigerian government that could enhance the equitable growth of income amongst
all the Nigerians (Akanmu et al., 2014). The country has also initiated different youth training
programs and has made massive investment in the ICT that is expected to boost the economic
growth of the nation. At the same time, it is important to note that the government has also
succeeded in developing the non-oil and gas sectors, such as the agriculture, manufacture and

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solid minerals sectors. The government has encouraged the private companies to make heavy
investments in these public sectors, and is supporting the private sectors to become the engine of
Nigerian economic growth and development (Uma et al., 2013). In addition, the privatization of
the public assets is also helping in enhancing the competitiveness of the industry.
1.4 Impact of economic recovery in Nigeria over oil and gas industry:
It has been found that Africa has become a leading hub of investment and has attracted
many investors to its business activities. The strong price of the commodity with the combination
of the huge growth of population and high capital inflow has leaded to a better economic
condition for the country (Perrons & Jensen, 2015). This in turn has also helped in the
improvement of the oil and gas sector. For instance, Nigeria can apply better technologies for the
purpose of drilling or refining of oil and petroleum. In addition to this, the easy transportation
capability has also help the country to expand its market opportunities to other parts of the globe.
The economic funding has also helped in improving the health and condition of the people by
providing better healthcare, education and agricultural ability as well. All these factors have
largely helped the country to improve its oil and gas sector as well (Sola & Joachim, 2016).
2. Focused aim of the research:
The aim of the research is to critically analyse the impact of the economic recovery that
took place within the last decade in Nigeria on the oil and gas sector of the country.
3. Research question:
Research Question 1: How the economic recovery in Nigeria affected the oil and gas sector of
the country?
Research Question 2: What are the factors that affect the oil and gas sectors of Nigeria?

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4. Proposed methodology of the research:
The research shall be completely based on the secondary sources of data. The information
on the economic recovery in Nigeria can be obtained from various newspaper articles and other
sources like research journals. All these sources can be easily accessed through the internet. The
Google scholar or any other available data base can be used for the sake of searching information
(Mackey & Gass, 2015). There is no scope for using primary data in the research as the impact of
economy on the oil and gas sector cannot be known by any kind of survey. Apart from this, there
is also no scope to interview any manager or other personnel related to the oil and gas sector
from Nigeria. Therefore, the complete research shall be based on the collected secondary data
only.
A number of theories and applications can be used that would help to understand the
concept of the topic and would help to get a clear understanding on the topic. Positivism research
philosophy will be used for analysing the theories that would help to analyse the recent situation
of the market that remains the primary requisite of the research (Flick, 2015). The complete
study shall be based on the deductive approach because the entire concept relies on the existing
models and theories and that no other method would help in carrying out the research in the right
way. In addition to this, the descriptive research design will be used that would help to take a
descriptive approach towards the topic under consideration. The research study requires carrying
out a detailed literature review along with the analysis and the interpretation of the collected
data. All these will be carried on using the secondary data collection technique only (Silverman,
2016). The analysis of the data will be based on certain themes that will be based on the set
research questions and objectives. It is on the basis of the findings, the data will be gained and
the answer to the research questions will be obtained.

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References:
Abuja (2017) Nigeria Faces Prospects of Fragile Economic Recovery in 2017 Retrieved from:
http://www.worldbank.org/en/news/press-release/2017/05/19/nigeria-faces-prospects-of-
fragile-economic-recovery-in-2017 [Accessed on: 24-8-2017]
Akanmu, A. A., Ogunsesan, A. S., & Ogundiran, A. A. (2014). Assessment of the Challenges
and Implementation of Post Flood-Disaster Needs Assessment in Ibadan, Nigeria. In 3rd
International Conference of the Faculty of Environmental Studies, The Polytechnic,
Ibadan, Nigeria, June (pp. 3-5).
Alshehry, A. S., & Belloumi, M. (2015). Energy consumption, carbon dioxide emissions and
economic growth: The case of Saudi Arabia. Renewable and Sustainable Energy
Reviews, 41, 237-247.
Appiah-Adu, K., & Sasraku, F. M. (2016). Revenue Management in the Oil and Gas
Sector. Governance of the Petroleum Sector in an Emerging Developing Economy, 27.
Asekome, M. O., & Agbonkhese, A. O. (2015). Macroeconomic variables, stock market bubble,
meltdown and recovery: evidence from Nigeria. Journal of Finance, 3(2), 25-34.
Chete, L. N., Adeoti, J. O., Adeyinka, F. M., & Ogundele, O. (2014). Industrial development and
growth in Nigeria: Lessons and challenges (No. 2014/019). WIDER Working Paper.
Dobbs, R., Fiorini, R., Leke, A., Thompson, F., & Wright, D. (2014). Nigeria’s renewal:
Delivering inclusive growth in Africa’s largest economy. Pre-publication document.
McKinsey Global Institute.
Flick, U. (2015). Introducing research methodology: A beginner's guide to doing a research
project. Sage.

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Henry, N. F., & Henry, O. N. (2015). Wireless sensor networks based pipeline vandalisation and
oil spillage monitoring and detection: main benefits for Nigeria oil and gas sectors. The
SIJ Transactions on Computer Science Engineering & its Applications (CSEA), 3(1), 1-6.
Idachaba, F. E. (2017, July). Nigerian Content Development in the Oil and Gas Sector: The Role
of the Nigerian Academia. In Nigeria Annual International Conference and Exhibition.
Society of Petroleum Engineers.
Mackey, A., & Gass, S. M. (2015). Second language research: Methodology and design.
Routledge.
Munasib, A., & Rickman, D. S. (2015). Regional economic impacts of the shale gas and tight oil
boom: A synthetic control analysis. Regional Science and Urban Economics, 50, 1-17.
Nwapi, C. (2015). Corruption vulnerabilities in local content policies in the extractive sector: An
examination of the Nigerian Oil and Gas Industry Content Development Act,
2010. Resources Policy, 46, 92-96.
Perrons, R. K., & Jensen, J. W. (2015). Data as an asset: What the oil and gas sector can learn
from other industries about “Big Data”. Energy Policy, 81, 117-121.
Saboori, B., Sapri, M., & bin Baba, M. (2014). Economic growth, energy consumption and CO 2
emissions in OECD (Organization for Economic Co-operation and Development)'s
transport sector: a fully modified bi-directional relationship approach. Energy, 66, 150-
161.
Silverman, D. (Ed.). (2016). Qualitative research. Sage.

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Sola, A. K., & Joachim, A. A. (2016). Development of the non-oil sector in Nigeria: Challenges
& lessons for less developed countries. Covenant Journal of Business and Social
Sciences, 5(1).
Uma, K. E., Eboh, F. E., & Obidike, P. C. (2013). Managing rural-urban migration and brain
drain for sustainable economic recovery in Nigeria: Constraints and options. Journal of
Economics and International Business Management, 1(1), 1-7.
Yusuf, Y. Y., Gunasekaran, A., Musa, A., Dauda, M., El-Berishy, N. M., & Cang, S. (2014). A
relational study of supply chain agility, competitiveness and business performance in the
oil and gas industry. International Journal of Production Economics, 147, 531-543.