“They Don’t Follow Rules”: Expert Highlights Why Local Oil and Gas Companies in Nigeria Fold Up
- NCDMB executive secretary, Engr Simbi Kesiye Wabote, has highlighted the reason oil and gas companies fold up
- He lamented that numerous regional oil and gas companies had failed because they did not follow the rules of corporate governance
- Wabote added that Aradel Holdings' succeeded because it did not engage in round-tripping
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The Nigerian Content Development and Monitoring Board (NCDMB) has said many indigenous oil and gas businesses in Nigeria fail because they don't follow the rules of good corporate governance.
See the list of top 10 oil and gas companies in Nigeria and their websites here
The board had earlier stated that Nigeria lost $380 billion in investment and 2 million jobs due to investors who fled due to political or economic unrest, currency depreciation, or the implementation of capital control, as contained in a Legit.ng report.
Engr Simbi Kesiye Wabote, the executive secretary of the board, at a ceremony to commemorate the rebranding of the Niger Delta Exploration and Production (NDEP) into Aradel Holdings, said local oil and gas companies must adhere to corporate governance guidelines in their business operations if they are to grow and become sustainable, according to Daily Trust report.
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Why Aradel succeeds in oil and gas industry
Wabote commended the management of Aradel Holdings for keeping strict corporate governance standards.
He noted that one of the remarkable things the chairman, Chief Ladi Jadesimi; the former Managing Director, Dr Layi Fatona; and their group have done is establish the spirit of corporate government.
He said the business succeeds because its proprietors were neither independent contractors nor did they hire other contractors or engage in round-tripping.
His words:
They are one of the local companies that NNPC Limited is proud to associate with. NCDMB is also proud of their success and we will continue to support them. That is why we urged indigenous producers to emulate Aradel Holdings and take corporate governance seriously, while owners of businesses should detach themselves from the daily operations of their organisations.
Why indigenous manufacturing shouldn't be downplayed
Continuing, Wabote said that over 30% of Nigerians are unemployed and warned that it would be a significant error for the oil business to downplay indigenous manufacturing and production.
Additionally, he pressed Aradel Holdings to actively participate in acquiring properties that some globally engaged oil firms were selling down.
TotalEnergies discovers new oil and gas in OML 102 in Southeast Nigeria
Legit.ng had reported that TotalEnegergies had made a significant oil and gas discovery in the Ntokon offshore of its OML 102.
The discovery is sighted 60 kilometres off the southeast and has about 38 million net oil and 15 million net gas pay.
Source: Legit.ng
