Nigeria’s oil output could drop by as much as 15 per cent by 2017 unless the government attracts more investment and resolves cash shortages at state oil firms, a senior Moody’s analyst said. Africa’s biggest economy produces about 2.1 million barrels per day of oil with foreign and local companies through production sharing contracts and joint ventures. But projects have been held up because state-oil firm NNPC needs parliamentary and regulatory approval to spend anything. Officials and lawmakers are often six months late in giving their assent, making proposals irrelevant as costs exceed the original budgets. As a result, unpaid bills have been piling up. “By 2017, if there’s no more investments oil production will drop by 15 percent,” said Aurelien Mali, senior analytical adviser, Africa, at ratings agency Moody’s. N
