The Minister of State for Petroleum Resources, Heineken Lokpobiri, has attributed the departure of several multinational corporations from Nigeria to the interference of middlemen in the country’s oil sector.
Speaking at the Petroleum Technology Association of Nigeria’s Sub-Saharan Africa International Petroleum Conference in Lagos, Lokpobiri highlighted how the involvement of intermediaries has negatively impacted Nigeria’s oil industry. He cautioned other African nations to avoid making the same mistakes.
Lokpobiri pointed out that key multinational oil service providers, including Schlumberger, Halliburton, and McDermott, had all exited Nigeria, leaving behind only a few players such as the Italian firm, Saipem. He explained that these companies were once instrumental in developing local expertise within the sector, but their departure has created a monopoly in the industry.
“When I assumed office, one of the major challenges I encountered was the exit of multinational oil service companies from Nigeria. Almost all of them had left, except for a few. This has created a monopolistic environment,” he stated.
Despite this, Lokpobiri stressed that Nigeria’s oil and gas industry remains robust, with vast opportunities in deep water, shallow water, and offshore operations. He emphasized that the country’s leading position in Africa’s oil production was not accidental but the result of deliberate policies by both the government and industry stakeholders.
The minister further explained that middlemen’s interference in oil production has driven up costs and affected Nigeria’s ability to profitably operate joint ventures with multinational oil companies. This has, in turn, contributed to the unfavorable business environment that has led many corporations to leave.
Addressing the theme of the conference, “Building Africa’s Future: Advancing Local Content and Sustainable Development in the Oil and Gas Industry,” Lokpobiri expressed appreciation for Nigeria’s achievements in developing local content, stating that the country has significant potential for further growth in this area.
Wole Ogunsanya, Chairman of PETAN, noted in his welcome speech that the association remains committed to monitoring industry trends and fostering stronger collaborations with the government and key stakeholders to navigate future challenges in the oil and gas sector.
Financial analyst Charles Abuede weighed in on the issue, emphasizing that the departure of multinational firms highlights deeper problems within Nigeria’s business environment, including foreign exchange policies and regulatory challenges.
“Nigerians should be concerned about these developments, as they reflect the difficulties businesses face in the country. Addressing these issues is crucial for creating a more attractive and stable environment for investments,” he said.
