One of the problems facing the Nigerian oil and gas industry is____________________?

1. Analyze the question The question asks for a problem (a challenge) facing Nigeria's oil and gas industry. So we look for the option that describes a real difficulty in the sector.

2. Explain the concept Nigeria's oil and gas industry has long faced several problems, including:

• Shortage of skilled indigenous manpower (technical and engineering expertise) and heavy reliance on expatriates
• Pipeline vandalism and oil theft
• Fluctuating world oil prices
• Inadequate refining capacity (so the country imports refined fuel)
• Environmental pollution and community unrest in the Niger Delta

3. Evaluate each option

• A. Over-capacity utilization: Nigeria's problem is the opposite. Its refineries have operated far below capacity (under-utilization), so this is wrong.
• B. The discovery of alternative oil sources: This is not a recognised problem facing the industry. Discoveries of new oil sources would generally be a benefit, so this is wrong.
• C. Shortage of indigenous manpower: This is a well-known challenge. Many specialised technical and managerial roles in the sector have been filled by foreign workers because of a lack of enough trained Nigerians. This fits.
• D. The excess supply of petroleum products: Nigeria actually suffers from scarcity of refined products, which is why fuel queues and imports occur. So this is wrong.

4. Answer The correct option is C. Shortage of indigenous manpower.

5. Exam tip For "problems facing an industry" questions, watch for options that describe the opposite of Nigeria's reality (such as "over-capacity" or "excess supply"). Nigeria's typical problems are shortages, under-utilization, and inadequacy, not excesses.