You don’t have to be a rocket scientist to recognize that the oil and gas have made individual wealthy, brought huge profit to companies and transformed poor countries into rich ones.
Think about Norway, which was one of the poorest countries. But what happened when the country struck oil in 1969.
They nationalized those oil resources. They allowed big international oil companies to extract resources.They received oil revenue. And they spent the revenue generated from the oil and invest in other sectors of the economy. The rest is history. Today Norway is rich and it is in fortunate economy.
Tanzania is the only country in East Africa with enormous natural gas reserves. As at the time of this writing, Tanzania has discovered 57.25 trillion cubic feet (1.61 trillion cubic meter) of natural gas.
And according to the US Geological Survey, the country still has potential natural gas reserves up to 441 trillion cubic feet solely in the coastal region, so more gas discovery might be forthcoming.
But the fact is If we develop these gas resources, country will receive billions of dollars in tax and resources royalties. And use the gas revenue to pay for healthcare, education and another sector of the economy.
The oil and gas activities have more benefit for the economic growth, it creates employment to our youths. And bring immense business opportunities to the local services providers who in turn will pay the tax.
Oil and gas companies remain sensitive to the citizen’s needs in the area they operate. They work with employees, family, and communities to improve the quality of their life
But if we don’t develop gas resources, the government will miss out billions upon billions of dollars.And chances are, we may be a big loser.
But the stability of legal and fiscal framework is vital to reach such height. Let’s develop our resources for the betterment of the country and its people.
By Hussein Boffu