FG Finally Shares Real Reasons Big Companies Are Leaving Nigeria
- The Minister of State for Petroleum Resources said middlemanism caused several multinational companies to leave Nigeria
- The minister underlined that one of Nigeria's shortcomings as an oil-producing nation was the introduction of middlemen into the oil sector
- He maintained that because the country contains offshore, shallow, and deep water, the space is big enough to accommodate everyone
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
Heineken Lokpobiri, the minister of state for petroleum resources (oil), disclosed that a number of global corporations departed Nigeria because of what he described as middlemanism.
Source: UGC
This was said by Lokpobiri in Lagos on Tuesday during the opening of the Petroleum Technology Association of Nigeria's Sub-Saharan Africa International Petroleum Conference.
The minister emphasized that Nigeria's entry of intermediaries into the oil industry was one of its faults as an oil-producing country and cautioned other African nations against making the same error, The Punch reported.
He claimed that because of the actions of middlemen in the sector, multinational oil service behemoths such as Schlumberger, Halliburton, McDermott, and others left Nigeria.
“We have made mistakes. And I’m saying this specifically so that all African countries here today will not make the mistake that Nigeria made. When I became minister, one of the issues I was confronted with had to do with the multinational service companies all exiting Nigeria. They’ve all gone, except, maybe this Italian company, Saipem. That was the only one that was around. So we had a situation where there was a monopoly.
“The other big boys—the Schlumberger, Halliburton, the McDermotts—all of them have gone. All of you here in PETAN have your good days in these companies. That was where you started from. That was where you actually developed your capacity,” Lokpobiri said.
He insisted that the area is large enough to hold everyone because the nation has deep water, shallow water, and offshore, all of which he claimed were beyond the capabilities of PETAN members.
“Nigeria is the leading oil and gas producer in Africa. We will continue to do so. Because we have developed an enormous capacity. That didn’t happen by accident, but by deliberate commitment on the part of PETAN members, deliberate commitment on the part of the government,” he stated.
Problem of middlemanism
Prior to the Nigerian National Petroleum Company Limited sharing oil profits with other oil firms with which it has a joint venture, the Federal Government bears the expense of production, which Lokpobiri said was affected by the middlemen difficulties.
Speaking on the conference's theme, "Building Africa's Future: Advancing Local Content and Sustainable Development in the Oil and Gas Industry," Lokpobiri said that foreign visitors' admiration for Nigeria's achievements in local content was touching.
He revealed that Nigeria has a vast amount of local content development capacity.
Wole Ogunsanya, the chairman of PETAN, stated in his welcome speech that the organization has been keeping an eye on industry developments and has chosen the conference's theme and sub-themes carefully in order to support its goal of strengthening partnerships with governments and important stakeholders in order to navigate the oil and gas industry's future phases.
Another foreign company leaves Nigeria after over 50 years
Legit.ng reported that American technology company International Business Machines (IBM) has announced the end of its on-ground operations in various African markets, including Nigeria.
The tech company said it will transfer its regional functions to MIBB, a subsidiary of the Midis Group.
The handover is effective from 1 April 2025 and will see MIBB take charge of marketing and selling IBM’s software, hardware, cloud, and consulting services.
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Source: Legit.ng
