Nigeria earns $ 300 bn revenue from oil in last 30 years
Nigeria's oil and gas sector in the last 30 years generated the sum of $ 300 bn, Minister of State for Petroleum,
Odein Ajumogobia, has said. He also said the sector has recorded an exponential annual growth of $ 12 bn in the last
five years.
The minister, who disclosed this in Lagos at the 17th edition of the Nigerian Content Consultative Forum, regretted
that despite the huge revenue accrued to the country from the industry, it has little to show in terms of enhancing
local participation. He said the current level of local participation is below 20 %, which is not enough to propel
requisite growth in the oil and gas industry.
This development, according to the minister, means that will be difficult for the nation to meet its set aspiration
of 70 % local content in the oil and gas industry by the year 2010. It will be recalled that the Obasanjo
Administration had set a target of 40 % and 70 % local content in the industry for 2007 and 2010 respectively.
However, the government faltered in its desire to achieve the 40 % of local content last year.
The minister was represented by the Director of Department of Petroleum Resources (DPR), Alhaji Aliyu Sabon Birni. He
said government and stakeholders should intervene in order to engender a positive approach to the local content
policy.
According to him, such intervention should entail capacity-building through the establishment of vocational
institution by the Nigerian Content Fund, investment diversification, activity generation within the industry which
will encourage local players, as well as promotion of synergies and alliances among indigenous players.
Speaking on the Niger Delta crisis, he said there is a political dimension to the crisis in the region, adding that
the non-implementation of local content policy is responsible for the pervading hunger and poverty in the area. He
expressed optimism that following the recent passage of the local content bill by the Senate, all the ills would be
amended and Nigerians would actively reapfrom the gains of the oil and gas industry.
Delivering paper a titled "Towards the Achievement of Nigeria Content Development in Exploration and Production" at
the forum, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Engineer Abubakar Lawal
Yar'Adua, regretted that the industry that generates 90 % income has employed less than 20,000 Nigerians. He
explained that the development informed government to set up the Nigerian Content Division in the NNPC two years
ago.
He said since its inception, the Division has caused significant changes in the industry following the increase in
local fabrication and domiciliary engineering services, etc. According to him, the government recently earmarked the
sum of $ 350 mm National Content Fund to support local players. He said the government is not resting on its oars as
it has continued to pursue aggressive drive to ensure that the local content policy is well-delivered to Nigerians.
The Managing Director of Shell Petroleum Development Company, Mr Mutiu Sunmonu, charged the Federal government to
provide the macroeconomic environment that will attract investors into other key sectors of the economy that are
supportive of the exploration and production industry. Mr Sunmonu urged the government to tackle the power supply
issue seriously. According to him, Nigeria requires additional in-country engineering capability for it to achieve
its Nigerian Content Development target.
"We believe other international oil companies and private sector operators are willing to invest in the creation of
the required capability. This, I must quickly add, requires time and appropriate funding. It also requires a positive
investment outlook in the years to come," he stressed.