The Society of Energy Engineers has forecasted that fossil fuel prices will remain high in the third quarter of 2024, leading to a surge in fuel imports and putting pressure on the naira. They also anticipate a potential 300% price hike in some states compared to 2023, as refineries operate at limited capacity due to maintenance issues.
Despite challenges, the group expects increased oil production from new fields and a boost in output from existing fields. However, factors such as security issues, divestments by oil majors, lack of investments, and governance issues may hinder energy growth in Nigeria.
The SEE predicts a rise in gas production with Nigeria maintaining its position as a key LNG exporter. However, infrastructure constraints and supply shortages could persist. In the electricity sector, new plant installations and infrastructure upgrades are expected, but funding shortages and grid stability issues may pose challenges.
Looming labour unrest and community development fund implementation are also highlighted, along with persisting issues like insecurity and oil theft. OPEC reports a dip in Nigeria’s daily crude oil production, emphasizing the need for strategic planning to navigate the energy landscape in 2024.