Unfavourable fiscal regime, transparency issues and stringent fund repatriation mechanism are reasons for the low investment inflow into Nigeria’s oil and gas sector, according to a top CEO.

Olalekan Akinyanmi, Chief Executive Officer, CEO, Lekoil Limited revealed what he described as "the worrisome trend that has kept the nation’s sector at low ebb". vanguardngr.com today carries a report about the CEO who effectively warns the government to help international companies invest, not hinder them with regualtion and difficulties getting their money back out of the country.

The CEO stated that investors have been reluctant to come to Nigeria because the opportunities are shrinking.

“Most times some of my partners would suggest we go other countries instead of coming to Nigeria. Their argument has always been that the opportunities are quite higher in those countries than in Nigeria," he is reported as saying.

‘‘They look at transparency issues. We talk about comparative upstream fiscal regime. The other thing is repatriation of funds. Investors want to know that at the end of the day, they will get their money back.

Akinyanmi explained that complex corporate structure and non existence of private equity model have continued to make it difficult to attract investors in the sector. According to him, “Another thing is equity."

"We need to give them the confidence that when they invest, they make money and there is a mechanism to repatriate their money,” he said.

Read the full report HERE

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