- Safiu Kehinde
The former Minister of State for Petroleum Resources, Prof. Emmanuel Kachikwu has sought an increase in the Nigerian Content Intervention Fund (NCI Fund) from to $450 million to $1billion.
Kachikwu, according to a statement issued on Monday by the Nigerian Content Development and Monitoring Board’s (NCDMB) Corporate Communications General Manager, Obinna Ezeobi, made the plea while speaking at the virtual Business Mentorship Lecture series organised by the board yesterday.
The ex-minister in his address maintained that the increment in NCI fund will cater for the funding of mega of oil and gas projects, setting up of pipe mills and manufacturing of other critical equipment needed in the oil and gas sector.
He also recommended that oil and gas producing companies should provide timelines for developing oil and gas blocks, same condition for firms that win industry contracts based on commitments of investments.
Kachikwu who served as the Chairman of NCDMB’s Governing Council from September 2016 to May 2019, stated that a larger NCI Fund will provide seed capital for developing blocks, accessing technology, skill sets and equipment.
However, the ex-NCDMB Chairman, as quoted in the statement, advised the Government to cancel oil blocks that are not developed after a prolonged period.
He alleged that many awardees of oil blocks in Nigeria treat them like certificates of occupancy for land, causing huge losses to the nation.
“We need to find a way to force performance in the industry. Some companies get contracts to import pipelines with proviso to invest locally.
“We need to begin to produce those equipment. You have to show the joint venture that you are setting up to produce pipes, where is the foreign partner with the funds and technology? You need to give a timeline.” Kachikwu said.
Commenting on the global investments space and how Nigeria can attract funding to the energy sector, the former minister 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.
Kachikwu also argued that Government should consider co-investing with private companies if there are good prospect of returns.
He 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).
However, the former minister 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, stressing the need to involve local communities to avoid past disconnects that fueled conflicts.
The former Minister commended the Executive Secretary of NCDMB, Engr. Felix Omatsola Ogbe for upholding the agency’s mission and recording significant strides since assuming office.
Addressing the players in the oil sector, Kachikwu urged them to acquire more technical skills, creativity, and embrace adaptability amid disruptions.
“My message to young professionals is clear. The oil industry may be facing disruption, but it is also full of opportunities. Careers in petroleum now demand more than technical skills. They require adaptability, creativity, and a deep sense of responsibility to both people and the environment.
“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 said.
In his welcome address, NCDMB’s Director of Capacity Building, Engr. Abayomi Bamidele, representing the 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.
Making the closing remarks, General Manager, Corporate Communications, NCDMB, Dr. Obinna Ezeobi, praised Kachikwu for sharing deep insights which benefitted stakeholders across the public and private sector of the energy sector.
He also thanked the guest lecture 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.
Ezeobi added that NCDMB has fully embraced its roles of enabling businesses, in addition to the traditional mandate of regulating and promoting local content.