Why foreigners dominate Nigeria’s oil industry – FG

Bisola David
Bisola David
Manufacturing sector's GDP contribution falls to N1.49trn

The Federal Government of Nigeria expressed concern at the 2023 Nigerian Oil and Gas Opportunity Fair, lamenting the fact that despite efforts to enhance the degree of indigenous firm engagement in Nigeria’s oil and gas industry, the sector is still mostly controlled by foreign organizations.

According to Arise News, despite all of the government’s efforts, foreign companies continue to dominate the sector in terms of exploration, extraction, and refining. “Nigeria only has services and marketing capabilities, thus the majority of petroleum products, including lubricants, are imported as part of the value-added chain.”

Aregbesola said that oil dominates the economy of the country but sadly, we have not made much progress in domesticating and controlling this significant sector, and we have also not been able to use it to drive the industrialization or economic growth that oil was supposed to bring.

The Minister of Interior, Mr. Rauf Aregbesola, pointed out that domestication and value-adding are necessary for Nigeria to benefit from its resources while speaking at the NOGOF 2023.

Aregbesola was represented by the Comptroller of Corrections, Nigerian Correctional Service, Rivers State, Felix Lawrence who emphasized that Nigeria must take research in the oil and gas industry seriously before the anticipated extinction of fossil fuels.

He noted that the moment has come for Nigeria’s oil sector and stakeholders to start taking responsibility for domesticating the whole industry, technology, and necessary knowledge base.

Aregbesola said that in addition to funding from governments, other players should consider how to broaden the body of knowledge and develop or modify particular technologies to meet Nigeria’s particular demands in the oil business.

“The oil business needs to overcome its reliance issues. Yes, we do accept overseas athletes. We want more investors, but since it is for our own benefit, we should be in charge. Not only should we control our own destiny, but we should also rule the Sub-Saharan oil and gas sector. Gas should be used to generate power for home use.”

He claimed that we will earn 10 times as much money from completed goods as we will from primary goods, which will increase the country’s wealth.

Finally, he added, “as the world switches to electric cars, we should also be able to plan for the alternative use of oil in a way that won’t disrupt our economy and when the day eventually arrives, we should be able to have an alternative.”

Additionally, the managing director of the Nigerian Exploration and Production Company, a subsidiary of the NNPC, Ali Zarah, stated that the division was concentrating on delivering 60 oil wells between 2023 and 2024.

He emphasized that the NCDMB will continue to support the initiatives of the local content board and outlined how local businesses are already replacing their overseas competitors.

“By the end of 2024, we’ll have delivered over 60 wells only through our drilling program. This opens up possibilities for rig provision, supplementary services, and a wide range of other activities, he said.

He emphasized further that the NEPL now runs securely and in accordance with all environmental rules while continuing to empower its host communities.

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