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Abstract The comparative advantage of abundant hydrocarbon resources enjoyed by Nigeria for economic development and as mainstay of government revenue has gradually eroded as the incremental capital output ratio (ICOR) continues to increase as the cost of extracting, transporting, and processing of petroleum liquids and natural gas to refined products for storage, domestic supply to local market and export has dwarfed revenues from operations. Incentives, exemptions from certain taxes, provisions for unbundling of business opportunities and activities from expansive implementation approach of the Petroleum Industry Act (PIA) 2021 has provided the required pivot for catalyzing growth. The onset of global mandates for curtailing growth of the fossil industry, changing dynamics of the fuels, petrochemicals, and commodities market, and efficiency gains from smart operating models must and are being harnessed to drive growth, and position Nigeria to embrace the midstream and downstream sector as the fulcrum for economic development. The outcome of these promptings in conjunction with the NMDPRA's regulatory support will engender transparency and accountability, create new markets for petroleum, realize cash flows from new business portfolios, sustain government revenues, and open doors for new investments.
Basaka et al. (Mon,) studied this question.