At the 42nd Annual International Conference and Exhibition of the Nigerian Association of Petroleum Explorationists (NAPE) kicked off on Monday in the bustling city of Lagos, the Nigerian Content Development and Monitoring Board (NCDMB) took the opportunity to rally industry stakeholders around critical initiatives aimed at countering the troubling trends currently plaguing Nigeria’s energy sector.
In a compelling presentation titled “Resolving the Nigerian Energy Trilemma: Energy Security, Sustained Growth, and Affordability,” the Executive Secretary of the NCDMB, Engr. Felix Omatsola Ogbe, shed light on a significant challenge facing the nation: the “alarming scale of pipeline vandalism and crude oil theft.” He emphasized that these issues pose the gravest threats to Nigeria’s energy security. To effectively address these challenges, Ogbe called for the implementation of substantial oil and gas projects, underpinned by a comprehensive security strategy that fosters mutually beneficial partnerships with host communities.
To drive these initiatives forward, the Board has committed to collaborating closely with industry stakeholders to establish a dedicated week each year for signing Final Investment Decisions (FIDs) on new projects. This initiative aims to encourage prospective investors to act swiftly to meet established deadlines, while also motivating regulators to streamline their processes.
Engr. Ogbe highlighted the potential of Foreign Direct Investments (FDIs) to “catalyze new projects within the Nigerian oil and gas industry.” He expressed confidence that successful collaboration among stakeholders and the NCDMB would bring to fruition the goals outlined in the Presidential Directives issued in March 2024 by The Presidency. This collaborative effort is intended to “fast-track the contracting cycle and incentivize investments in our sector,” enhancing the overall growth trajectory of the industry.
Represented by Mr. Esueme Dan Kikile, Esq., the General Manager of Corporate Communications and Zonal Coordination, Ogbe proposed the integration of the FDI Week into major oil, gas, and energy conferences held throughout Nigeria. He pointed out that the Board already hosts a biennial event known as the Nigerian Oil and Gas Opportunity Fair (NOGOF), which attracts both international and indigenous operating companies eager to explore and share project opportunities within the sector. This initiative serves as a platform for fostering awareness and driving collaboration, setting the stage for a more resilient energy future in Nigeria.
On the Board’s strategy to create a safe and secure operating environment for oil and gas companies and thus eliminate the huge costs associated with vandalism and attacks on personnel and installations, the Executive Secretary disclosed that NCDMB has introduced a new policy known as “Back to the Creeks Initiative.”
According to him, “We are convinced at the Board that the incessant tampering with crude oil pipelines and hostilities in oil-producing communities have a huge impact on energy security,” and that the new initiative is geared towards curtailing incidences of disruptions of oil industry operations through targeted interventions. These include execution of corporate social responsibility projects in communities, provision of affordable finance to local contractors, upgrade of basic educational facilities in villages and communities, building the capacity of teachers and improving the infrastructure at that level.
The initiative, whose details would soon be publicized, is expected to create a stakeholder feeling in host communities and make them view industry assets around them as facilities that are bound up with their socio-economic well-being. Such an orientation would translate into safety of assets, increased crude oil production, drastically reduced security costs and more favourable pricing of petroleum products
