The Nation Newspaper

Category: Energy

  • ASCON Oil, 11 PLC clash over filling station

    The ownership battle for a petrol station belonging to Mobil Oil Plc now 11PLC on Oshodi-Gbagada Expressway, has taken a new dimension. ASCON Oil, accused of illegally taking over the outlet, has begun to sell fuel there despite a court order restraining the two parties from accessing the property.

    Justice A.M. Lawal of the Lagos High Court on May 23, 2018 in suit no LD/ADR/13/2013,ordered the parties  to vacate the property till otherwise stated by the court.

    On September 17, a lawyer, Chief Paul Obi, informed the Commissioner of Police (CP), Lagos State Command, of ASCON Oil’s disobedience of the orders and the consequences of its action. Obi claimed ASCON began sales at the petrol station even when Mobil Oil has 42,000 litres of premium motor spirit (PMS) in the underground tanks. This, according to him, amounts to theft.

    The Senior Legal Officer, 11PLC, Samuel Eme Ozeh, told The Nation that the firm on July 16, wrote the CP, informing him about the illegal takeover of the petrol station by ASCON Oil.

    The letter entitled: “Criminal trespass, forceful and unlawful takeover of Mobil Petrol Station at Oshodi-Gbagada Expressway by officers and agents of ASCON Oil Company Limited,” said: “We write to bring to your attention the criminal activities and acts of lawlessness being perpetrated by officers and agents of ASCON Oil Company Limited at our above-mentioned petrol station.”

    According to Ozeh, Mobil Oil had built and operated the filling station for over 36 years having signed a lease agreement dated May 20, 1981 with Chief Sunday Ogunyade, the original owner of the land for a term of 20 years with an option to renew. This initial term was extended at its expiry for a further 10-year term by virtue of the Terms of Settlement dated September 29, 2000. In 2010, we agreed an extension of the lease with the Estate of Late Chief Sunday Ogunyade commencing from September, 2010, to August 1, 2020, he said.

    “However, the Estate of late Chief Sunday Ogunyade, in a desperate bid to renege on the agreed 10-year lease, instituted an action at the Lagos State High Court in Suit No LD/176/2010 between Mr. Samson Ogunyade and Ors (suing as the Administrators of the Estate of late Chief Sunday Ogunyade) v Mobil Oil Nigeria Plc and ASCON Oil Company Limited. In a considered judgement the court made the following declarations and order: That there existed a new lease agreement between the Estate of Late Chief Sunday Ogunyade and Mobil Oil Nigeria Plc.

    “That the Administrators of the Estate of the late Chief Sunday Ogunyade whether by themselves, agents, privies or any person acting on their authority cannot evict, eject or forcibly remove Mobil Nigeria Plc from the property in any way contrary to law.

    “An order of injunction restraining the Administrators of the estate of late Chief Sunday Ogunyade from selling or leasing the property and the assets of Mobil Oil Nigeria Plc on the property to Messrs ASCON Oil Company or any other third party at any time during the subsistence of the leasehold agreement dated May, 20, 1981, terms of Settlement dated September 29, 2000 and the new lease agreement between Mobil Oil Nigeria Plc and the Estate of late Chief Sunday Ogunyade which lease agreement is for a period of 10 years commencing from September 1, 2010 to August 31, 2020.”

    Ozeh said in spite of the subsisting judgment, “ASCON Oil with the aid of armed thugs invaded our petrol station, violently attacked our security men and took over the petrol station. They removed all Mobil signboards on the premises and replaced same with that of ASCON.

    “We reported the act of brigandage and criminality to the Nigeria Police and after thorough investigations, the police commenced the prosecution of ASCON and its officers for felony. An officer of ASCON, Mr. Nwakaudu Okechukwu Provins, was arraigned on June 22 at the Chief Magistrate Court 1, Igbosere, Lagos on a 4-count charge vide charge no A/59/2018 whilst the other officers and agents of ASCON are still at large.

    “Even with the prosecution of ASCON officers, on July 1, we received a call that ASCON agents and officers with the aid of armed thugs had invaded our petrol station in a replica operation of the first, dislodged our security and removed all Mobil signboards and replaced them with ASCON signboards. On getting to the scene, we met a contingent of policemen who informed us they were there at the instance of ASCON. The policemen are permanently stationed to guard the petrol station. They have refused us entry into the premises, which we have lawful possession of, to carry on with business.”

    However, ASCON’s Managing Director, Grace Olowofeyeku, told reporters that all the claims by 11Plc with respect to the property were all false, stating that the property belongs to ASCON. ASCON Oil, according to her, bought it in 2010 for N750 million.

    She also said the Managing Director of 11Plc, Mr. Adetunji Oyebanji, had approached her for the sale of the property for N350 million but she refused, adding that Oyebanji resorted to oppressing her with the case because of the long animosity he had with her late husband.

    She said: “We bought that station in 2010 and Mobil went to court challenging the fact that we bought the station. They have been peddling this rumour that they have a lease; they don’t have a lease because as far as I’m concerned they’re squatters. And in law, you have a right to go and chase out a squatter from your house.

    “And also the judgement given by Justice Dada, which they are relying on has no place. It said they have a lease. Okay assuming Justice Dada said they have a lease, have they reached out to us to pay us for any lease for eight years; it will be eight years in October 2018.

    “Mobil think that because they are big and because I’m a widow they will push me around. I bought that station for N750million with bank money in 2010 and Mobil keeps bringing technicalities so that they will stretch me and frustrate me into a stage where I will now sell it to them. They made an offer of 350 million which I rejected. If you say you have a lease why are you offering to sell. I don’t know anywhere in law where a judge can force a tenant on you, it’s not done anywhere.”

    Olowofeyeku explained that ASCON decided to take over the station as it rightfully belongs to them and vowed to fight the case up to the Supreme Court.

  • OPEC crude grades’ prices up by 70% in two years

    The Organisation of Petroleum Exporting Countries (OPEC) has said the average price of its members’ crude grades (OPEC Basket) rose by 70 per cent in two years to $73.27 per barrel (bbl).

    Oil prices crashed globally in 2014 from over $100 per barrel to below $30 per barrel. However, from 2016, prices started to rally to $40 and above per barrel, and have continued to $70 and $80/bbl.

    OPEC document (August/September 2018 OPEC Bulletin) made available to The Nation said: “Since the end of 2016, the OPEC Reference Basket has increased by nearly 70 per cent, gaining $30 to average $73.27/bbl in July 2018.  During the same period, ICE Brent improved by 60 per cent to reach $75/bbl, while NYMEX WTI rose by 55 per cent to settle above $70/bbl, for the first time since late 2014, at $70.58/bbl.

    “Oil prices increased during this period amid decreasing oil inventories, which have switched from showing a huge over-hang to the five-year average at the end of 2016, to now standing at a deficit. Furthermore, robust global demand and growing geopolitical tension have supported the rise in crude oil prices. In addition, an all-time record increase in financial market trader activity also contributed to bullish sentiment.

    “On the product side, fuel prices globally trended upwards in 2018 in response to rising crude prices. In the US, gasoline prices reached a 33-month record high of $96/bbl  in  May,  up  by  30  per  cent  compared  to  $75/b a  year earlier. At the same time, refinery margins performed well, reaching a high of $18.55/bll during the same month, both due to refineries being offline during peak maintenance, as well as healthy product demand.

    “Looking  ahead,  healthy  global  economic  developments and increased industrial activity should support the  demand  for  distillate  fuels  in  the  coming  months,  leading  to  a  further  drawdown  in  diesel  inventories,  which already stand well below the five-year average in the Organisation for Economic Cooperation and Development (OECD) region. Additionally, the lack of investments in fuel oil desulphurisation units, to accommodate the IMO 2020 regulations amid the declining high-sulphur fuel-oil refinery output will likely boost diesel requirement, as a cleaner substitute for bunker fuel oil. These two factors could lead to further market tightness for diesel, thus exacerbating pressure on diesel prices.”

    The report noted that compared to the previous year, there had been an improvement in crude oil prices. The extent of the increases in the benchmarks has varied, impacted by different market fundamentals on each side of the Atlantic, adding that product prices have generally followed the upward trajectory of crude oil prices.

    On the world economy, the OPEC report stated that the global GDP growth forecast remains at 3.8 per cent for 2018 and 3.6 per cent for 2019, unchanged from the previous assessment while world oil demand growth is anticipated to increase by 1.64million barrels per day (bopd), 20,000 bopd lower than last month’s projections, mainly due to weaker-than-expected oil demand data from Latin America and the Middle East in second quarter 2018.

    Total oil demand is anticipated to reach 98.83million bopd. For 2019, world oil demand is forecast to grow by 1.43million bopd, also some 20,000 bopd lower than last month’s assessment. Total world consumption is anticipated to reach 100.26million bopd. The OECD region will contribute positively to oil demand growth, rising by 270,000 bopd year-on-year (y-o-y), yet with growth of 1.16million bopd, non-OECD nations will account for the majority of growth expected. Non-OPEC oil supply in 2018 was revised up by 73,000 bopd from the previous monthly oil market report (MOMR) to average 59.62million bopd, representing an increase of 2.08million bopd y-o-y.  The main reason for this upward

  • MAPs: Offer investors, manufacturers 5% interest rate, says MMAN

    The Federal Government should open up a lending window through which investors in the new metering plans would borrow money, the Meter Manufacturers Association of Nigeria (MMAN), Executive Secretary, Mr. Muhideen Ibrahim, has said.

    He said the new metering regulation ensures that investments have a life span of between 10 years and 15 years.

    In a phone interview with The Nation, he said the new metering plan, which gave birth to the introduction of Meter Asset Providers (MAPs), requires huge funds, adding that the government could assist by giving investors or meter manufacturers a single- digit loan of five per cent.

    Ibrahim said: “There should be government’s intervention of about five per cent or less interest rate to the manufacturers of meters. Through this, the manufacturers would be able to access funds from the banks for the growth of their businesses. Without intervention from the government, metering would be a challenging task.”

    He said MAPs have been meeting with power distribution companies’ (DisCos) on how to meter consumers, adding that they have mapped out strategies on how to achieve the goal.

    According to him, banks (local and foreign) were not giving credit to producers of meters because they do not have the capacity to pay back.

    “But if the government through the Central Bank of Nigeria(CBN) can compel financial institutions to give loans at five per cent interest rate to investors in metering areas, the better for the growth of the sub-sector. Also, the African Development Bank and others should be made to join the investment profile in order to guarantee long term stability,” he added.

    The credit worthiness, Ibrahim said, of meter asset providers, is key to their ability to stay in business. He said when providers of meters demonstrate enough capabilities in the sub-sector, providing meters to the consumers and putting an end to estimated billing would not be a problem.

    On gains of MAPs, he said the idea would enable consumers to access meters for growth, while at the same time, save themselves from embarrassment from officials of the power firms that disconnect customers light unnecessarily.

    Also, the Chief Executive officer, MOMAS Electricity Meters Manufacturing Company Limited (MEMCOL), Mr. Kola Balogun, said it was difficult to determine the effectiveness of the new metering regulation now as the scheme is still in its infancy.

    He urged the government to display the passion that it had when the regulation was conceived during the implementation, adding that when this happens, the idea would record much success.

  • 11 Plc rewards customers with multi-million naira prizes

    The management of 11Plc (formerly Mobil Oil Nigeria) has splashed millions of naira on its customers.

    At the firm’s Mobil Super Peel and Win Marketing Promo grand raffle draws in Lagos, it gave away prizes, which included branded new SUV GAC, five tricycles, five motorcycles, five electric generators, five gas cookers, five smart telephone handsets.

    The star prize of GAC SUV was won by Miss Blessing Agbo.

    The Managing Director/Chief Executive Officer, Tunji Oyebanji, said: “Today’s event is special because the Mobil lubricant brand was not known in this country for marketing promotions of this magnitude. Times have changed. This is the new energetic Mobil brand for you, the consumers. The new management has recognised the role of marketing promotions in products acceptability, business growth and profitability. Thanks to the recent management structuring that gave birth to a more business inclined, refocused and reenergised company, by name 11Plc, formerly Mobil Oil Nigeria plc.

    “The Mobil Super ‘Peel and Win’ promo was rounded up on 31st August 2018 after about four months of intensive travelling and roadshows. Today’s raffle draws will be the seventh out of the planned seven raffle draws to support the promo initiative. At various times during the promo, we conducted raffle draws in seven state capitals, including Abuja. We started with Ibadan and moved to Port Harcourt, Enugu, Benin City, Kano and Abuja in the order given. Today, we are rounding up with Lagos. The previous draws produced about 80 winners of the major prize items that included tricycles (otherwise knowns as Keke Marwa), motorcycles (aka Okada), power generators, gas cookers, smart telephone handsets, mechanic toolboxes and cash prizes outside other hundreds of freely shared footballs, Mobil-NATA branded mechanic coveralls for mechanics, football jerseys, branded biros and key holders, etc. In other words, there was a prize for everyone that attended the previous draws. And this is the expectation in today.

    “This is a strong indication of better things to come for users of Mobil engine oils in the coming years. While thanking you for your unwavering patronage and loyalty to our premium brand, we wish to appeal to you to stand firm in the use of Mobil range of quality engine oils.”

  • Consumers accuse Ikeja Electric of demanding money for meters

    Electricity consumers have accused officials of the Ikeja Electric (IE) of demanding between N25,000 and N35,000 from them before giving them pre-paid meters, The Nation has learnt.

    It was gathered that consumers in Alimosho Local Government Council and Igbogbo/Bayeeku Local Council Development Authority were directed by IE officials to pay N25,000 for a single-phase meter and N35,000 for double-phase. This is contrary to the stipulation of the Nigerian Electricity Regulatory Commission (NERC) that no power distribution company (DisCo) or its agent must collect money from customers for meters.

    Areas visited by The Nation to ascertain the claims of the customers included Egbeda, Idimu, Ikotun, Igbogbo, Kobe, Ewu-Pako, Wagbare, Ololo (now Pineapple Estate),  Ofin, Agunfoye and Bayeeku( all in Alimosho and Igbobo/ Bayeeku Local Government Areas).

    It was gathered from the Business Unit of the power firm in Igbogbo that consumers were authorised by the firm to pay the money in cash to the unit after the firm had certified they did not owe bills.

    An official of the Business Unit who pleaded anonymity, said meters were available, adding that customers must meet their financial obligations to the company before they could get them.

    He said meters were available in Igbogbo/Bayeeku LCDA,  adding that customers are advised to apply for the meters in groups to fast-track the process of payment and collection of meters.

    A consumer, who did not want to be named, said he was yet to get a meter as he had not paid.

    It’s spokesman Mr. Felix Ofolue said the firm was only recovering the debts owed by consumers and not charging them for meters.

    He said the company introduced the strategy to help customers reduce their debt and to start on a clean slate.

    Ofolue said: “Our consumers are being misinformed.We at Ikeja Electric are not charging our customers before we give them meters. What we are doing is that we are helping customers to reduce debts owed in form of accumulated bills. We are saying that if a customer is owing a bill of N300,000 and he is able to pay  N100,000, he can be given a meter  By so doing, he has reduced his debt.

    “Similar strategy was adopted in the telecom industry, a situation whereby subscribers are advised to repay the loans on their phone by purchasing more airtime and further get bonus.  So, there is no criminal intention in what Ikeja Electric is doing. In fact, customers would benefit in the long run as they would be able to use their own meters while at the same time be free from debt.

  • ‘Why mining sector must be investor friendly’

    President, Women in Mining, Nigeria, Janet Adeyemi, has called for the amendment of the mining sector’s regulation to make it investor friendly.

    Adeyemi, who spoke to The Nation in Abuja, said the sector if well managed, through a transparent system, could be a major contributor to the gross domestic product (GDP) and create more employment.

    She said the conflict between surface and mineral rights and the Land Use Act 1978 (28) should be well defined.

    According to her, the mining cadastre office should be open to public scrutiny and be information and communication  technology (ICT) compliant.

    She identified challenges facing women  to include non-acceptability, low perception, lack of funds and skills, poor labour wages, adding that processing of titles is burdensome.

    Adeyemi emphasised communities’ engagement, how to create a strategic working plan for community involvement and growth, integrate artisanal mining into the mining system, and achieve safe mining practices.

    She said corporate investors must be committed to building the capacities of their host communities and encourage them to invest proceeds from them, only then can such corporation thrive in peaceful domain, she added.

    According to her, prospective investors in the sector must be committed to utilising the best international mining procedures to prevent crisis and advance their business. They must be committed to ensuring that mining adds value to the lives of the host community not induce poverty and disease, she added.

    She said mining was no longer an alternative; rather, it should take the main stage in national discourse, knowing that the green technology revolution is pushing hydrocarbon to the background, adding that cashew will soon displace oil.

    She said women in mining were involved in advocacy, sensitisation and promotion of the relevance of women in the industry, which according to her had taken them round all the mining destinations in the country.

    Sensitisation of young graduates to the sector through mentoring, the official mainstreaming of gender into the mining sector, co-hosting of the mine to money as well as crowd funding to run lead and zinc extraction in Taraba State, which according to her, is still ongoing, among others.

  • OPEC crude grades’ price up by 70% in two years

    The Organisation of Petroleum Exporting Countries (OPEC) has said the average price of its members’ crude grades (OPEC Basket) rose by 70 per cent in two years to $73.27 per barrel (bbl).

    Oil prices crashed globally in 2014 from over $100 per barrel to below $30 per barrel. However, from 2016, prices started to rally to $40 and above per barrel, and have continued to $70 and $80/bbl.

    OPEC document (August/September 2018 OPEC Bulletin) made available to The Nation said: “Since the end of 2016, the OPEC Reference Basket has increased by nearly 70 per cent, gaining $30 to average $73.27/bbl in July 2018.  During the same period, ICE Brent improved by 60 per cent to reach $75/bbl, while NYMEX WTI rose by 55 per cent to settle above $70/bbl, for the first time since late 2014, at $70.58/bbl.

    “Oil prices increased during this period amid decreasing oil inventories, which have switched from showing a huge over-hang to the five-year average at the end of 2016, to now standing at a deficit. Furthermore, robust global demand and growing geopolitical tension have supported the rise in crude oil prices. In addition, an all-time record increase in financial market trader activity also contributed to bullish sentiment.

    “On the product side, fuel prices globally trended upwards in 2018 in response to rising crude prices. In the US, gasoline prices reached a 33-month record high of $96/bbl  in  May,  up  by  30  per  cent  compared  to  $75/b a  year earlier. At the same time, refinery margins performed well, reaching a high of $18.55/bll during the same month, both due to refineries being offline during peak maintenance, as well as healthy product demand.

    “Looking  ahead,  healthy  global  economic  developments and increased industrial activity should support the  demand  for  distillate  fuels  in  the  coming  months,  leading  to  a  further  drawdown  in  diesel  inventories,  which already stand well below the five-year average in the Organisation for Economic Cooperation and Development (OECD) region. Additionally, the lack of investments in fuel oil desulphurisation units, to accommodate the IMO 2020 regulations amid the declining high-sulphur fuel-oil refinery output will likely boost diesel requirement, as a cleaner substitute for bunker fuel oil. These two factors could lead to further market tightness for diesel, thus exacerbating pressure on diesel prices.”

    The report noted that compared to the previous year, there had been an improvement in crude oil prices. The extent of the increases in the benchmarks has varied, impacted by different market fundamentals on each side of the Atlantic, adding that product prices have generally followed the upward trajectory of crude oil prices.

    On the world economy, the OPEC report stated that the global GDP growth forecast remains at 3.8 per cent for 2018 and 3.6 per cent for 2019, unchanged from the previous assessment while world oil demand growth is anticipated to increase by 1.64million barrels per day (bopd), 20,000 bopd lower than last month’s projections, mainly due to weaker-than-expected oil demand data from Latin America and the Middle East in second quarter 2018.

    Total oil demand is anticipated to reach 98.83million bopd. For 2019, world oil demand is forecast to grow by 1.43million bopd, also some 20,000 bopd lower than last month’s assessment. Total world consumption is anticipated to reach 100.26million bopd. The OECD region will contribute positively to oil demand growth, rising by 270,000 bopd year-on-year (y-o-y), yet with growth of 1.16million bopd, non-OECD nations will account for the majority of growth expected. Non-OPEC oil supply in 2018 was revised up by 73,000 bopd from the previous monthly oil market report (MOMR) to average 59.62million bopd, representing an increase of 2.08million bopd y-o-y.  The main reason for this upward

  • We have enough fuel, says NNPC

    The Nigerian National Petroleum Corporation (NNPC) has put in place measures to prevent fuel scarcity in the last quarter of the year, its Group General Manager, Public Affairs, Ndu Ughamadu,  has said.

    He said the Corporation was being proactive to avoid a recurrence.

    Some of the measures, he said, include fuel import and provision of a good distribution mechanism to ensure that the product gets to the nooks and crannies of the country.

    In an interview with The Nation, Ughamadu said the NNPC’s Group Managing Director, Dr. Maikanti Baru, was championing these measures to make the end of year celebrations merry.

    The Corporation’s boss, he said, had  met stakeholders in the industry to achieve the goal.

    He said the NNPC’s chief had intervened in the crisis involving members of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and ExxonMobil and other issues to ensure that fuel distribution was not disrupted.

    Ughamadu said: “PENGASSAN has given ultimatum to ExxonMobil to reinstate some of the workers sacked by the multinational oil company in line with the Supreme Court judgment. To prevent the issue from snowballing into major crisis, which would affect distribution and supply of petroleum products in the country, among other industry wide problems as 2018 is winding to a close, Dr Baru-led NNPC decided to engage stakeholders in the matter. NNPC has been able to deal with the threats by oil workers unions, especially PENGASSAN on the issue.’’

    He said by taking these measures,  NNPC would avert a re-occurrence of the incidents that happened in the last quarter of last year, when the country was plagued by fuel crises, which paralysed economic activities  across the country.

    He advised consumers, especially motorists not to entertain any fear of petroleum products shortages.

    It would be recalled that the last quarter of every year is plagued with fuel scarcity with NNPC and marketers finding it difficult to address the problem.

    Depots owned by NNPC and private operators also experience  the problem. While many of the depots owned by NNPC complain of problems of infrastructure decay and poor state of the pipelines, the privately-owned depots complain about lack of fuel supply.

    Worse still, fuel marketers complain that NNPC has monopolise fuel import.

  • 11Plc rewards customers with multi-million naira prizes

    The management of 11Plc (formerly Mobil Oil Nigeria) has splashed millions of naira on its customers.

    At the firm’s Mobil Super Peel and Win Marketing Promo grand raffle draws in Lagos, it gave away prizes, which included branded new SUV GAC, five tricycles, five motorcycles, five electric generators, five gas cookers, five smart telephone handsets.

    The star prize of GAC SUV was won by Miss Blessing Agbo.

    The Managing Director/Chief Executive Officer, Tunji Oyebanji, said: “Today’s event is special because the Mobil lubricant brand was not known in this country for marketing promotions of this magnitude. Times have changed. This is the new energetic Mobil brand for you, the consumers. The new management has recognised the role of marketing promotions in products acceptability, business growth and profitability. Thanks to the recent management structuring that gave birth to a more business inclined, refocused and reenergised company, by name 11Plc, formerly Mobil Oil Nigeria plc.

    “The Mobil Super ‘Peel and Win’ promo was rounded up on 31st August 2018 after about four months of intensive travelling and roadshows. Today’s raffle draws will be the seventh out of the planned seven raffle draws to support the promo initiative. At various times during the promo, we conducted raffle draws in seven state capitals, including Abuja. We started with Ibadan and moved to Port Harcourt, Enugu, Benin City, Kano and Abuja in the order given. Today, we are rounding up with Lagos. The previous draws produced about 80 winners of the major prize items that included tricycles (otherwise knowns as Keke Marwa), motorcycles (aka Okada), power generators, gas cookers, smart telephone handsets, mechanic toolboxes and cash prizes outside other hundreds of freely shared footballs, Mobil-NATA branded mechanic coveralls for mechanics, football jerseys, branded biros and key holders, etc. In other words, there was a prize for everyone that attended the previous draws. And this is the expectation in today.

    “This is a strong indication of better things to come for users of Mobil engine oils in the coming years. While thanking you for your unwavering patronage and loyalty to our premium brand, we wish to appeal to you to stand firm in the use of Mobil range of quality engine oils.”

  • NCDMB pushes for strict local content practice

    For the local content policy to be fully achieved, the law guiding its practice must be strictly adhered to, the Director, Planning, Research and Statistics, Nigerian Content Development and Monitoring Board (NCDMB), Patrick Obah, has said

    Obah, who spoke on behalf of the Executive Secretary of the Board, Simbi Wabote, at an oil and gas forum in Lagos, with the theme “The role of Nigeria’s local content policy and its impact on sustainable economic value creation,” noted that local content as a global agenda is about protecting the country’s natural deposits.

    He insisted that the practical aspect of the local content was still missing. According to him, we must be tie practical  retention with theory, adding that what we have been able to do is to explain to people how things by allowing them to have a feel of it, he stressed

    Our focus when we talk about succession plan is not about the Nigerianisation of companies and positions but what time Nigerian will acquire that skill, he asked. We must know what we have on ground that will give a clear pointer to where we want to go, he said, adding if we do not know, we cannot plan well

    He said: “All these companies you see have different levels of capacities. A lot of people don’t know what Nigerians can do. I have had opportunities to visit some companies and it is awesome the kind of investments that exist in this country. If we do not have statistics of what is on ground and what they can do, that is, the capacities these companies have, the kind of skills they have, we can adequately articulate all of these parameters and forge our country ahead.When we get the statistics right, the capacities right, we would be able to know where to improve.

    He said the Nigerian content law is about the domiciliation/domestication of value-adding activities. He said the key word about the Nigerian content implementation is development and monitoring, hence the need to develop local capacities and capabilities and then monitor compliance and enforcement.

    “There must be standardisation in the way we do things. If we don’t do that we cannot get a clear direction towards development. We should be able to bring in specialisation into all these things,” he stated.

    He noted that the local content as it is practised in other places, such as Brazil, Trinidad and Tobago, Indonesia, United Kingdom and Canada. They all had local content laws after discovering oil.

    “Also, when they had to face the green energy, they didn’t have the full technology but they made pronouncements that the government should favour any company, which during bidding, had high percentage of the country’s content,” he said adding the conditions were listed and are almost the same.

    “The conditions include technology transfer, employment of locals, capital flight reduction, local ownership and control of assets, poverty alleviation drive, increased production and utilisation of locally made goods, and sustainable economic growth.

    “Before now, the emphasis was on how much money we could get from the oil and gas value chain, revenue generation, taxes as well as being able to produce first oil,” he noted.

    However, with the enactment of the NODGIC Act 2010, the emphasis shifted more to in-country manufacturing, skilled manpower, job creation, technology development, revenue retention, research and development, value retention, technology linkages and industrialisation and in-country services.

    Obah said the Board had  provided on its website for whistle blowing. With this, the board wants to know about compliance in terms of Nigerian content. “So, if you see any infraction, please send it to us. We don’t need to know your name, where you stay or where you work, tell us the problem and we spend resources to investigate that and where any company, any individual is found liable, we invoke the provisions of the law,” he added.