Can Nigeria endure falling oil prices?

Nigeria's oil sector has long been a critical component of the country's economy, but the recent fall in oil prices has posed significant challenges. In a recent interview with CNBC Africa, Chairman of the Society of Petroleum Engineers Saka Matemilola delved into the implications of lower oil prices on Nigeria's economy and shared insights on how the country can navigate these turbulent times. Matemilola highlighted the need for strategic planning and cost-cutting measures to ensure the sustainability of the oil and gas sector amidst the current downturn. One of the key issues discussed was the cost of production. Matemilola emphasized the importance of reducing contracting costs and exploring innovative technologies to enhance efficiency and drive down expenses. In addition, he addressed the issue of insecurity in the oil and gas sector, particularly in light of recent events in the region. While acknowledging the challenges posed by insecurity, Matemilola remained optimistic about the resilience of the industry and emphasized the importance of enhancing security measures to protect lives and properties. The interview also touched upon the relationship between petroleum engineers and the federal government, highlighting the collaborative efforts to address key policy issues and drive the sector forward. Furthermore, Matemilola discussed the potential impact of foreign investments, noting that foreign interest in Nigeria's oil sector signals confidence in the country's policies and market potential. Overall, the interview provided valuable insights into the strategies and partnerships necessary to navigate the complexities of Nigeria's oil industry amidst uncertain market conditions.