The global oil and gas industry had an underwhelming year in 2020 as the twin shocks of the oil price crash and the COVID-19 pandemic adversely influenced demand and supply of crude oil in an unprecedented manner; thus leading Nigeria into its second recession in six (6) years. Nigeria, a country heavily dependent on proceeds of crude oil sales, was forced into reactive strategies, such as palliative measures and several fiscal initiatives, to charge the economy into recovery.

Hopefully, 2021 will be the year of recovery as countries make strategic plans to open up their economies with the supply of vaccines being ramped up and pharmaceuticals striving to meet global demand. We also expect that 2021 will see a rise in demand for crude oil and its derivatives.

We have highlighted some of the recent developments in the industry in Nigeria, how these developments impacted on businesses operating in the sector and what to expect in the coming months of 2021.

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Wale Ajayi

Partner & Head, Tax, Regulatory & People Services

KPMG in Nigeria