By Obas Esiedesa, Abuja

Chairman of Nestoil Limited, Dr. Ernest Azudialu-Obiejesi, has called for a shift in the implementation of the Nigerian content policy and advocated for awarding contracts to companies with proven capacity, rather than solely considering the lowest bids.

Speaking at the Nigerian Oil and Gas Conference in Abuja, Dr. Azudialu-Obiejesi emphasized the need to develop local capacity to enable the country to become a net exporter to African nations. He acknowledged the country’s potential but stressed the importance of addressing growth-limiting factors.

Dr. Azudialu-Obiejesi stated, “We can export our oil and gas industry capacity to other countries, but we must first develop and entrench our local capacities in human resources, experience, capital, and equipment”. He commended the Nigerian Content Development and Monitoring Board, NCDMB, for their efforts but highlighted the need for improved enforcement of local content laws to protect local companies.

He also criticized the current bidding process, which often favours briefcase contractors with connections but lack capacity. Dr. Azudialu-Obiejesi called for a more robust bidding process that prioritizes capacity and competence over lowest prices.

Dr. Azudialu-Obiejesi emphasized the need to level the playing field in the oil and gas industry, stating, “When we address these issues, our local content capacity will thrive. Then, when bidding for jobs, companies with similar technical capabilities will compete, ensuring timely and budget-friendly delivery.”

He advocated for harmonization and the removal of barriers, enabling Nigerian companies to export their capacities to other countries, benefiting from the African Continental Free Trade Area, AfCFTA.

“We should be able to export our capacities, not just have Nigerians work overseas. Nestoil Limited, for instance, has grown from a service company in 1991 to an oil-producing company, starting with pipeline construction. We’ve become one of the biggest pipeline companies in Nigeria, serving International Oil Companies, IOCs, like Shell, who have used our CTR line for over 20 years.”