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Zawya
3 days ago
- Business
- Zawya
Dan Etete: Architect of Nigeria's oil sovereignty
BY the twilight of 2024, Nigeria's local content participation in oil and gas had risen to an unprecedented 56 percent, as reported by the Nigerian Content Development and Monitoring Board (NCDMB). This remarkable milestone reflects a strategic shift in Nigeria's resource governance—an ongoing revolution in which Nigerian companies, workers, and communities increasingly occupy center stage in the oil and gas value chain. But long before such progress became measurable or fashionable, it was visionaries like Chief Dan Etete, Nigeria's Minister of Petroleum Resources from 1995 to 1998, who laid the philosophical, political, and structural foundation for this transformation. Etete's time in office coincided with a turbulent yet defining period in Nigeria's history. Serving under the late General Sani Abacha, he operated in a milieu of intense international scrutiny, geopolitical tension, and entrenched foreign dominance over Nigeria's energy resources. For decades, multinational oil corporations such as Shell, Chevron, and Mobil had maintained monopolistic control over oil exploration and production in Nigeria. Local content was virtually non-existent, and the concept of indigenous ownership of oil blocks was treated as radical, even dangerous. Etete challenged this orthodoxy with courage and clarity. He recognised that economic sovereignty was inseparable from resource control, and he pursued bold reforms to break the stranglehold of foreign multinationals over Nigeria's oil wealth. It is instructive to note that the foresight of Etete in pioneering local content laid the foundation for the recent dynamic Nigeria First Policy by President Bola Tinubu that places emphasis on made in Nigeria goods. For the record, Etete was the one that set up Marginal Field Decree of 1998 for the benefit of all Nigerians to be included in the oil and gas industry. His tenure heralded a new era of indigenous participation and empowerment, even as it attracted controversy from entrenched interests both within and outside Nigeria. Pioneering the local content revolution Etete's boldest policy decision was the allocation of Oil Prospecting Licences (OPLs) to Nigerian-owned companies. On April 29, 1998, he signed off on the award of critical oil blocks—including OPL 245 (Malabu Oil and Gas), OPL 246 (South Atlantic Petroleum), OPL 247 (Heritage Oil), and OPL 248 (Zebra Energy)—to Nigerian firms. Far from being arbitrary handouts, these allocations were grounded in a nationalistic philosophy: to redistribute wealth, transfer technology, build local capacity, and give Nigerian entrepreneurs a stake in the oil economy. It is crucial to understand the status quo Etete was up against. According to the Nigeria Extractive Industries Transparency Initiative (NEITI), over 80% of Nigeria's oil wealth historically accrued to foreign firms, with only $5 out of every $100 remaining in the country. The rest was exported as capital flight, enriching foreign shareholders while Nigerian communities, particularly in the Niger Delta, endured pollution, poverty, and violence. Etete was the first senior public official to confront this injustice—not through rhetoric, but through policy. He expanded the Indigenous Concession Programme (ICP), which had been initiated in the early 1990s but lacked political will and institutional support. Under Etete, the ICP gained teeth. Notably, he facilitated the transfer of OPL 216 from BP-Statoil to Famfa Oil, co-founded by Mrs. Folorunsho Alakija. Today, Famfa Oil is among Nigeria's most successful indigenous oil companies, producing in partnership with Chevron. The saga of OPL 245: A symbol of resource nationalism Perhaps no oil block better illustrates the high stakes and political complexities of Etete's tenure than OPL 245. Covering over 1,800 square kilometers in deep offshore waters, the block holds an estimated 9 billion barrels in oil reserves. In 1998, the oil block was awarded to Malabu Oil and Gas. It is important to state with high sense of responsibility that Dan Atete did not have interest in OPL 245. It was the directors of Malabu that appointed him as a consultant to the oil firm. The goal, as contemporaneous documents show, was not personal enrichment but to create a Niger Delta-led consortium that would ensure the people of the oil-bearing region had a direct stake in the resources beneath their soil. The ownership of OPL 245 became a litmus test for indigenous empowerment. However, in 2001, during President Olusegun Obasanjo's administration, Malabu's license was revoked and the block was reallocated to Shell. This triggered a legal battle that would last more than two decades, involving multiple Nigerian administrations, international oil giants Shell and Eni, and litigation in Nigeria, the UK, France, and Italy. Despite the media firestorm and politically motivated allegations, no court has ever found Etete personally guilty of corruption regarding the Malabu transaction. In fact, in 2017, an Italian court acquitted Shell and Eni executives, and in 2021, a Milan court reaffirmed that no criminal wrongdoing was proven. Even Nigerian courts have affirmed Malabu's title to the block on several occasions. The enduring controversy surrounding OPL 245 is a case study in how resource nationalism can be criminalised when it challenges global corporate interests. Etete became a convenient scapegoat—not because of criminal acts, but because he sought to give Nigerians ownership of their oil. Advocacy for the Niger Delta: Born in the heart of the Ijaw ethnic nation, Chief Dan Etete had firsthand knowledge of the paradoxes of Nigeria's oil wealth. He was vocal about the marginalization of the Niger Delta, and his policies reflected a desire to use oil wealth to catalyze development in the region. Etete's advocacy extended to calls for new states in the Niger Delta, greater resource control, and environmental remediation. He supported the idea of using oil-derived revenue to fund education, infrastructure, and local enterprise. This perspective, though ahead of its time, now aligns with today's Host Community Development Trusts (HCDTs) embedded in the Petroleum Industry Act (PIA) 2021. The long-term impact of Etete's tenure is undeniable. Companies such as Seplat Energy, Aiteo, Oando, Sahara Energy, and Notore—all of which now employ thousands of Nigerians and are publicly traded—owe their rise to the indigenous empowerment precedent set by Etete. The idea that Nigerian firms could compete globally in oil and gas was once unthinkable. Today, it is taken for granted. In 2010, more than a decade after Etete's reforms, the Nigerian government enacted the Nigerian Oil and Gas Industry Content Development Act (NOGICD Act), which mandates that Nigerians must own a minimum percentage of goods, services, and workforce in the sector. This legislation draws a direct philosophical lineage to Etete's early efforts. Under the administration of President Bola Tinubu, Nigeria has doubled down on local content. In 2024, NCDMB reported that 56 percent of oil and gas industry services were performed by indigenous companies. These include fabrication yards, engineering services, and upstream operations—sectors previously monopolized by foreign contractors. In essence, the nation owes these milestones to the brave and bold efforts of pioneers like Dan Etete. A visionary ahead of his time Etete's role in shaping Nigeria's oil and gas architecture has been systematically downplayed, even maligned. Yet, a dispassionate review of the facts reveals that he was not a rogue actor, but a reformer within a resistant system. His decisions were rooted in strategic intent to advance national interest, despite being opposed by powerful foreign and domestic actors. While some critics focus on his association with Malabu, they fail to assess the broader structural changes he made possible. Etete laid the groundwork for local ownership of Nigeria's most vital economic sector. He empowered Nigerian entrepreneurs, defended the rights of marginalized communities, and helped reposition Nigeria on the global oil map—not merely as a supplier, but as a sovereign participant. Restoring a distorted legacy At 80 years old, Chief Dan Etete remains one of the most misunderstood and misrepresented figures in Nigeria's modern economic history. Yet, his legacy is evident in every local oil company that thrives, every Nigerian engineer that works offshore, and every government policy that prioritizes domestic capacity over foreign Nigeria looks to the future—with energy transition, climate change, and economic diversification at the forefront—it must not forget the shoulders it stands upon. Etete's boldness, foresight, and unwavering belief in Nigeria's potential deserve acknowledgment, not vilification. It is time to tell the full story of Chief Dan Etete: not as a footnote in controversy, but as a patriot and pioneer who helped reclaim Nigeria's economic destiny from the grip of foreign dominance.
Zawya
22-05-2025
- Business
- Zawya
Ngeria: FG to oil firms, ramp up production to meet OPEC quota
The Minister of State for Petroleum Resources, Gas, Ekperenkpo Ekpo, has called on oil and gas stakeholders to collaborate to meet the quota approved by the Organisation of Petroleum Exporting Countries (OPEC) Ekpo gave the appeal on Wednesday during the ongoing 2025 Nigeria Oil and Gas Opportunities Fair (NOGOF) in Yenagoa. The minister, who was represented by the Permanent Secretary, Mr Emeka Obi, noted that the oil output of 1.4 million barrels per day as of the first quarter of 2025 fell short of the 1.8 million barrels quota approved by OPEC. He pointed out that with the nation's oil reserve and a commitment by industry players, there is an opportunity to meet the quota. The theme of this year's event is: 'Driving Investment and Production Growth: Shaping a sustainable Oil and Gas Industry through Indigenous Capacity Development'. The minister commended the Nigeria Content Development and Monitoring Board (NCDMB) for the fair showcasing opportunities for Nigerian companies. He said that the growth of Nigerian content from five per cent in 2010 and 56 per cent in 2024 was a laudable achievement. Some 1,000 companies are participating in the fair, where major oil producers showcase opportunities and projects. Commission Chief Executive, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, in he s keynote address, pointed out that driving investment and production growth in Nigeria's oil and gas industry required a multifaceted approach. According to him, it would demand creating a favourable investment climate, developing indigenous capacity, and ensuring sustainability through environmental stewardship. 'By working together, we can shape a future where the oil and gas sector continues to be a pillar of our economy, contributing to national development and improving the quality of life for all Nigerians,' he said. Komolafe, who was represented by the Commission's Executive Commissioner, Health, Safety, Environment and Community, said that Nigeria's oil and gas industry has long been the mainstay of our economy, contributing significantly to the nation's foreign exchange earnings, providing substantial revenue for the nation's development. 'It is crucial to acknowledge the sector's role in our economic history while recognising the urgent need to adapt and transform it to meet future challenges and opportunities,' he said To achieve sustainable growth in the oil and gas sector, he pointed out that robust upstream investments are essential. According to him, attracting both local and foreign investment required concerted efforts to create an enabling environment characterised by stability, transparency, and regulatory certainty. He pointed out that investors must have confidence in the industry's legal and fiscal frameworks, confident that their investments are secured and will deliver profitable returns. 'Production growth, on the other hand, hinges on optimising our existing resources and exploring new frontiers. 'This involves adopting cutting-edge technologies and best practices to enhance efficiency and reduce operational costs. It also means investing in infrastructure development to support exploration, development and production activities,' he said By doing so, he said the nation can maximise its production capacity and ensure a steady crude oil and gas supply to meet both domestic and international demand. He reeled out the NUPRC's mission in promoting sustainable value creation from Nigeria's Petroleum Resources for shared prosperity, urging stakeholders not to lose sight of the need for sustainability and environmental stewardship as they focus on investment and production growth. 'The oil and gas industry has a significant environmental footprint, and it is our responsibility to mitigate its impact. This involves adopting cleaner technologies, reducing emissions, and ensuring responsible resource management. 'The NUPRC is positioned and has developed various initiatives that align with the national goals and the Petroleum Industry Act 2021. We recognise the connectivity between climate change and energy security, particularly within the context of upstream petroleum operations. 'We are committed to fostering a sustainable and resilient industry that minimises its environmental impact on our host communities, while optimising our hydrocarbon development for our collective benefit,' Komolafe said. Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (
Zawya
18-04-2025
- Business
- Zawya
Nigeria: NCDMB assures indigenous oil, gas companies of an enabling environment
Indigenous oil and gas companies have been assured of an enabling environment by the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Felix Omatsola Ogbe. Addressing a high-powered delegation of the Renaissance Africa Energy Company Limited, a consortium that concluded acquisition of onshore oil assets of Shell Petroleum Development Company (SPDC) in March 2025, in his office in Yenagoa, Ogbe, expressed total support for the vision and long-term plan of company. Ogbe said its management team would be willing to engage with their counterparts from the Renaissance Group whenever the need arose. He commended the company's emphasis on Nigerian Content and plans to establish a foothold in other countries across Africa, assuring the delegation that NCDMB would provide their company with 'double enabling environment' in support of its growth in Nigeria and abroad. The NCDMB boss noted that Renaissance Africa Energy Company has a promising future, given the very competent hands in its employ who had held responsible positions in companies with track records of performance in the oil and gas sector. Related Easter celebrations: NSCDC deploys 415 personnel in Zamfara EKEDC announces 10-hour payment downtime for prepaid customers Zamfara AGILE supports govt to recruit 2,000 teachers Earlier, the Managing Director and Chief Executive Officer of the company, Dr. Tony Attah, had thanked the executive secretary for the warm reception, assuring him and the NCDMB management, 'We are ourselves Nigerian Content – we're wholly Nigerian.' On the company's long-term plan, he said, 'We invest in Nigeria, but represent Nigerian Content across Africa…. Our mission is to be the African leader in energy but most importantly to enable energy security, to enable industrialisation.' Chairman of the Renaissance Group, Dr. Layi Fatona, recalled that the NCDMB had been very supportive to the SPDC in the past, and that it was their expectation that the new company which has acquired the assets of the Anglo-Dutch giant would continue to enjoy the same relationship. The General Manager, Corporate Communications and Zonal Coordination of the NCDMB, Barr. Esueme Dan Kikile, in a brief comment noted that the vision of the NCDMB aligns with that of Renaissance, and that the two organisations would be able to collaborate productively to advance local content. Renaissance Africa Energy Company Limited is a consortium comprising four leading indigenous oil companies, namely, ND Western Limited, Aradel Holdings, FIRST Exploration and Petroleum Development Company Limited (FIRST E&P), and Waltersmith Group, and an international energy company known as Petroni.
Zawya
06-03-2025
- Business
- Zawya
Nigeria: NIMASA commits to strengthening maritime business growth
The Nigerian Maritime Administration and Safety Agency (NIMASA) has reaffirmed its commitment to fostering a level playing field and creating an enabling environment for businesses in Nigeria's maritime sector. The Director General of NIMASA, Dr. Dayo Mobereola, made this known while receiving the Executive Members of the Nigerian Merchant Navy Officers and Water Transport Senior Staff Association. He emphasized that under the supervision of the Ministry of Marine and Blue Economy, led by Hon. Adegboyega Oyetola, CON, NIMASA is taking strategic steps to enhance local participation and encourage investment in the industry. Dr. Mobereola revealed that NIMASA is deepening its collaboration with the Nigerian Content Development and Monitoring Board (NCDMB) to explore policies that will boost indigenous involvement and strengthen Nigeria's maritime sector. 'The Honourable Minister of Marine and Blue Economy is committed to encouraging indigenous players to invest more in Nigeria's maritime industry. Issues such as national carriers and trade terms remain top priorities under this administration. Our focus is to create an enabling environment where private investors can thrive. In this regard, we have initiated discussions with the NCDMB and NNPC Limited to address these critical matters,' he stated. In response, Comrade John Aleakhue Okpono, Secretary General of the Merchant Navy Officers and Water Transport Senior Staff Association, emphasized the need for closer collaboration between NIMASA and the Merchant Navy. He also urged the Agency to review waiver clauses to ensure more opportunities for Nigerian seafarers. NIMASA remains committed to fostering strategic partnerships that will enhance local investment, create jobs, and drive sustainable growth in the maritime sector. Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (
