Poor Corporate Governance Killing Indigenous Oil Firms – NCDMB

The Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Simbi Wabote, has identified lack of corporate governance sustenance as responsible for the shutting down of several indigenous oil and gas companies.
Wabote gave the indication at the Rebranding Ceremony of the Niger Delta Exploration and Production (NDEP) into Aradel Holdings, at the Weekend.
Regreting that many local oil and gas companies have died because they do not adhere to corporate governance principles, Wabote insisted that for the indigenous oil and gas companies grow and achieve sustainability, they must instill the principles of corporate governance in their operations.
He lauded the management of Aradel Holdings for setting high standards of corporate governance, saying, “one of the incredible things the Chairman, Chief Ladi Jadesimi, the former Managing Director, Dr Layi Fatona, and their team have done is instilling the spirit of corporate government.
“That is why the company is succeeding.The owners of the business are not contractors; they do not engage contractors and they do not engage in round tripping. That has led to their success”.
Wabote, who described Aradel Holdings as a good example, noted that they have made significant returns to their joint venture partners.
“They are one of the local companies that NNPC Limited is proud to associate with. NCDMD is also proud of their success and we will continue to support them”, he assured.
Wabote further challenged indigenous producers to emulate Aradel Holdings by taking corporate governance seriously, recommending that owners of businesses detach themselves from the daily operations of their organizations.
He also challenged Aradel Holdings to champion the development of local content, stressing that the implementation of the Nigerian Content initiative and the Nigerian Oil and Gas Industry Content Development (NOGICD) Act enabled indigenous producers to not only exist but thrive.
According to him, it is the responsibility of Aradel Holdings and other local producers to support local content, protect and enhance it, with a view to creating jobs, growing technology, and developing the nation’s natural resources.
While noting that the percentage of unemployed Nigerians was over 30 per cent, the NCDMB boss warned that it would be a grave mistake if the oil industry were to de-emphasise local manufacturing and local production and called on the firm to play an active role in the acquisition of assets being divested by some international operating oil companies.
The Chairman, Aradel Holdings, Chief Ladi Jadesimi, while tracing the history of the firm, noted that it had operated in the past three decades and pioneered several initiatives, including marginal field operations, one of which he said is the Okpele Field, which has grown the daily production from about 1,000 barrels of crude oil per day to 13,000 barrels.