IEA Cautions Nigeria, Other Producers Against Over-Dependence on Oil

SEATTLE (Oil Monster): The International Energy Agency (IEA), has cautioned oil producing and exporting countries against over-dependence on oil revenue.

In its latest report obtained by Vanguard, IEA stated that there was a great need for oil and gas nations to diversify their economy.

The agency which examined the case of Nigeria, Iraq, Russia, Saudi Arabia, the United Arab Emirates and Venezuela, and others, urged them to cut their reliance on energy revenues.

IEA Director, Fatih Birol, said: “more than at any other point in recent history, I believe there needs to be fundamental change in the development models of those countries.

“When we look at these countries, on average they get more than 70 percent of their government revenues from oil and gas. Those are under pressure from prices, they are under pressure from the amount of oil they export and under pressure from population growth. We think it is different from the past.

Meanwhile, Chairman, Petroleum Technology Association of Nigeria (PETAN), and Chief Executive Officer of CB Geophysical Solutions Limited, Mr. Bank-Anthony Okoroafor,  also called for an urgent shift to other resources.

He said: “We should shift from using oil as just a revenue earner to an enabler for economic growth. Instead of just selling crude, we should be selling refined products and using gas to electrify and industrialise our entire region. An economy powered by adequate electricity and petroleum products.

Courtesy: www.vanguardngr.com