Navigating Cash Call and Revenue Challenges in Nigeria’s Oil and Gas Sector: Strategic Implications, Economic Impacts, and Policy Lessons

The Nigerian oil and gas industry is vital to its economy, contributing significantly to its revenue and foreign exchange earnings. Central to this industry is the mechanism of cash calls, a financial instrument utilized in joint venture agreements between the Nigerian National Petroleum Corporation (NNPC) and international oil companies (IOCs) for funding exploration and production activities. It performs a pivotal role in sustaining operations and driving growth in the sector. However, significant drawbacks include corruption and governance issues, security concerns, environmental and social impacts, regulatory and policy framework limitations, and the imperative for economic diversification. Examining these challenges in detail sheds light on the complex landscape of the industry and proposes potential solutions for its sustainable development. Hence, this research paper explores the future outlook of the Cash call mechanism in the Nigerian oil and gas industry.