Mele Kyari, the Group Managing Director of the Nigerian National Petroleum Corporation, has come out to explain why oil companies of foreign origin are ceasing to operate in the country any further.
Companies such as Royal Dutch Shell have closed and reports have recently surfaced of Exxon Mobil, Chevron and Total Energies are looking to sell their assets off.
These developments have brought a lot of uncertainty into the Nigerian oil industry which is not as vibrant as it once was.
Kyari explained that the reason for these foreign oil firms leaving is because they are focusing their attention on other energy sectors especially those that have to deal with reducing carbon emissions to net-zero levels.
“Companies are divesting. They are leaving our country. That is the best way to put it," Kyari said.
"They are not leaving because opportunities are not here but because companies are shifting their portfolios where they can add value and not just that, but where they can also add to the journey towards carbon net-zero commitment.”
With increasing levels of climate change which is a threat to the environment, countries across the world are coming together to reduce the level of carbon and other greenhouse gases into the atmosphere. Exploration of crude oil and processing of other petroleum products, are among the largest emitters of these harmful gases. Hence, demand for the products and price has gone down. Oil companies are now shifting to new energy resources, methods and technologies that are environment-friendly.
Nigeria is a signatory to the Paris Climate Accords which aims reach net-zero levels globally by 2050. West Africa's largest economy has however not taken up concrete action as per legislation and execution on the matter and continues practices that contribution to more carbon emissions.