… calls for enforcement to make pipeline contractors invest locally, build JV
Oredola Adeola
Prof. Emmanuel Kachikwu, former Minister of State for Petroleum Resources, has proposed raising the Nigerian Content Intervention Fund (NCI Fund) from its current $450 million to $1 billion by expanding it beyond the 1% upstream contract deductions to also capture contributions from operators and investors.
This according to him, would enable funding of mega oil and gas projects, pipe mills, and critical equipment manufacturing.
He made these recommendations and dwelt on similar issues on Monday at the Business Mentorship Lecture Series organised virtually by the Nigerian Content Development and Monitoring Board (NCDMB).
According to him, a larger NCI Fund will provide seed capital for developing blocks, accessing technology, skill sets and equipment.
He further argued that “there is lot of money waiting to be tapped, however it is only going to countries where there is a perception of regularity.”
He opined that Nigeria’s image needs to improve. Government needs to create the right investment climate to attract investment.
There is enough investment money out there if you have a holding of hands. They need to portray Nigeria as the place you can put money and get good returns,” he said.
He further urged that companies awarded contracts to import pipelines should be compelled to invest locally and begin producing such equipment in Nigeria.
According to him, the industry must enforce performance by requiring firms to present joint ventures that include foreign partners bringing in both funding and technology, insisting that such regulations must be implemented within a clear timeline.
Kachikwu who served as the Chairman of NCDMB’s Governing Council from September 2016 to May 2019, advised the Government to cancel oil blocks that are not developed after a prolonged period.
He regretted that many awardees of oil blocks in Nigeria treat them like certificates of occupancy for land, causing huge losses to the nation.
The former Minister also lauded the oil and gas sector’s transformation, with indigenous firms like Seplat, Aiteo, Oando Energy Resources, and Heirs Oil and Gas and others acquiring assets from divesting international oil companies (IOCs).
He cautioned that mere ownership transfers are insufficient without enhanced output, management, and revenue returns, as well as compliance with extant laws.
“My greatest fear is that without principled accounting, supervision, and effective oversight, indigenous companies may profit while the federal government loses revenue,” he said.
Kachikwu highlighted how policies under his leadership compelled international oil companies (IOCs) to prioritize Nigerian involvement, fostering the rise of indigenous operators and skilled professionals.
According to him, “For too long, foreign companies dominated every segment of the sector, while our people remained bystanders.
He also urged young professionals to embrace adaptability, creativity, and a deep sense of responsibility to both people and the environment amid disruptions.
He said, “The oil industry may be facing disruption, but it is also full of opportunities. Careers in petroleum now demand more than technical skills.
“The industry is not just about barrels and dollars; it’s about national survival, community welfare, and the environment.
“Achieving your career goals is a marathon, not a sprint. Patience and endurance are essential. Self-Belief is Crucial. Confidence in yourself and your abilities will fuel your progress and help you overcome challenges,” he counselled them.
The Minister also noted that principles matter: Let your ethics and integrity be a guiding light. Build relevant skillsets. Equip yourself with the skills that make you competitive and adaptable in the job market.”
Engr. Abayomi Bamidele, NCDMB’s Director of Capacity Building, who represented Engr. Felix Ogbe, Executive Secretary, underscored the Business Mentorship Lecture Series’ role in fostering trends and mind-sets for excellence.
He said the lecture series was organised in furtherance of the Board’s mandate in sections 67 and 70n of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010, to hold workshops and seminars to promote and advance Nigerian Content.
Dr. Obinna Ezeobi, General Manager, Corporate Communications, NCDMB, in his remark praised Kachikwu for sharing deep insights which benefitted stakeholders across the public and private sector of the energy sector.
He also commended the former Minister for his contributions to the NCDMB, recalling his sign-off on the Waltersmith Refinery investment, which became a successful project and the launch of the US$200m NCI Fund, which has grown into US$450m, now managed by the Bank of Industry and Nexim Bank.
He added that NCDMB has fully embraced its roles of enabling businesses, in addition to the traditional mandate of regulating and promoting local content.
He added that the Board is committed to supporting Nigerians and local oil and gas firms to grow sustainably in the sector, hence it organises the Business Mentorship Lecture Series, which he assured would continue as a key platform for engaging and educating stakeholders of the industry.
