Business

Nigerian Content And Oil Sector Revolution

Published

8 years ago

September 4, 2017

It is no longer news that the price of oil in the international market is on a progressive decline.
The reason for this, of course, is not far-fetched; the world is rising above dependency on fossil oil as major source of energy and as nature abhors vacuum, global attention is shifted to alternative source of energy to avoid been caught up in the imminent revolution.
However, Nigeria as an oil producing country does not only depend on the exportation of oil as a major source of revenue but imports refined petroleum products for domestic consumption.
This ugly development trend places Nigeria in a state of sordid reality in the global paradi shift.
In line with this global revolution in the oil and gas industry, pundits have continued to raise questions on its implications for the development of the Nigerian oil sector; will Nigeria key into the revolution having remained the only country in the world that will eventually be left behind, when fossil oil cease to be the major energy source?
Executive Secretary of the Nigeria Content Development Monitoring Board, Engr. SimbiWabote, however provided answers to this niggling question, while addressing a session of experts in the oil and gas sector, at a content development exhibition workshop organised in Port Harcourt, recently.
The workshop which was jointly organised by the Port Harcourt Branch of the Nigeria Society of Engineers, and the Nigeria Content Development Monitoring Board was according to the executive secretary a platform to brainstorm on the way forward for the Nigeria oil and gas industry and the wider economy.
Engr. Wabote, noted that the dismal level of Nigeria to the tune of a paltry five per cent made Nigeria to focus mainly on oil revenue in the past, resulting in foreign based procurement and estimated capital flight of about $380bn in 50 years, with over two million jobs specifically lost in the Niger Delta region.
According major consequence according to him was the narrative and global portrayal of Nigeria as a consuming economy.
However he pointed out that “the issuance of the 16 and 23 directives in 2005 and 2006 respectively, to drive local content raised the local content consciousness in the oil and gas industry but the imperative was centred on best endeavour basis thereby stunting the anticipated prospect of development”.
The directives subsequently received legal backing for an all-encompassing framework of Nigeria content development, when the Nigeria oil and gas industry content development act, was enacted in 2010.
Under the act, the Nigeria content development and monitoring Board’s mandate was broadly classified into two key areas; to develop capacity of local supply chain for effective and efficient service delivery to the oil and gas industry, without compromising standards, and to implement and enforce the provisions of the Nigeria Oil and Gas Content Development (NOGICD) Act 2010.
In course of actualising its statutory mandate, the executive secretary, said, “we have been consistent in promoting the development and enforcement of local content implementation in the oil and gas sector and have recorded some key achievements.
He pointed out that before the Act; “we had annual spend of $20bn with little or nothing retained in-country, Today I can confidently say that we spend $5bn in the country, every year. We targeted four pipe mills, but today we have two World-class pipe mills and five impressive coating yards. Before 2010 only three per cent of marine vessels were Nigerian owned today, Nigerians control and own 36 per cent of vessels that are used in the oil and gas industry”.
The executive secretary further explained that Nigeria can presently handle fabrication capacity of more than 60,000 tonnes, while all cables required in the oil and gas sector are all “manufactured in Nigeria, adding that manufacturing of bolts, nuts and flanges fully certified to the required oil and gas industry standard for onshore and offshore projects are now being carried out in the country”.
Other achievements recorded by the board in the same direction, according to the executive secretary, include; “the creation of 35,000 jobs and the assembly of offshore Christmas trees, in-country at the FMC Technip assembly plant in Onne and the GE assembly plants in Onne and Calabar, development of new infrastructure for integration of FPSO’s on the back of Egina project, with a production capacity of 200.000 bbl/day and holding capacity for 2.3 million barrel of oil”. With these achievements, he said the board has moved the in-country value retention from less than five per cent before the act to the current 26% level.
As part of measure of achieving local content development, the executive secretary stated that, “the board was supporting indigenous companies venturing into Deep Water offshore projects and operations, as well as collaborating with investors or business organisations, such as Nigeria Liquefied Natural Gas (NLNG) and other business organisations to establish a dry dock facility in the Niger Delta region to cater for the maintenance of big vessels, including LNG carriers”.
Engr. Wabote added that the Federal Government was promoting a domestic gas utilisation programme to encourage use of cooking gas and thereby discourage the use of kerosene, firewood and charcoal, to enhance a cleaner and healthier environment in the country.
Similarly to the gas utilisation programme, he said “CNG ulilisation is another initiative being pursued by the Federal Government to achieve its Gas revolution and utilize the huge gas reserves of 180TCF under the oil gas industry roadmap also known as seven big wins laundered by President MohammaduBuhari in October last year.
With the glimmer of economic hope presented by the Nigerian Content Development and Monitoring Board, (NCDMB), Nigerians are of the view that the gains so far made be consolidated especially in the diverfication of the oil and gas industry.
With an estimated number of 10 million vehicles in the country and less than 10,000 running on CNG and the frittering of over five trillion naira on buying of fuel by over eight million Nigerians depending on generators, a fuel swift to gas utilisation promises a rosy economic future for the country.
An expert in the petroleum industry, Prof. Ogbonna Joel, believes that only through effective diversification of the oil and gas industry can the objective of the Nigeria oil and gas, content development Act be achieved. Speaking in an interview with The Tide, Prof. Ogbonna, urged the Nigeria Content Development and Monitoring Board, (NCDMB) to support indigenous companies and local enterpreneurs to boost their capacity to contribute to national growth, such synergy, he pointed out would promote local based technology and make Nigeria key into the global technological revolution.
Also commenting on the prospect of the Nigeria content development, an Environmental Sociologist, Dr. Steve Wodu, said. The federal Government should put in place proper regulatory framework for the implementation of the Content Development Act.
He said the allegations making the rounds of purported plans by the Nigeria Content Development Board (NCDMB) to move its operational base from the Niger Delta was an ominous sign, and urged the board to be focused on the implementation of its mandates.
It could be recalled that barely one week after it jointly organised a 3-day content development and exhibition workshop with the Port Harcourt Branch of the Nigeria Society of Engineers (NSE) in Port Harcourt, the operational headquarters of the Nigerian Content Development and Monitoring Boards NCDMB in Yenagoa, Bayelsa State was shut down by members of the Ijaw youth Council (IYC).
The reasons advanced by the protecting youths is that the Board has opened new operational offices in Lagos and Abuja, a decision they said was contrary to the provisions of the Nigeria Content Act.
Tari Porri who led the protest said the move to open news offices of the board in Abuja and Lagos contravened section 71, sub-section 3 of the NCDMB laws, which stipulate that the Board offices should only be established in oil and gas producing areas.
The recent shut down of its activities by the protesting Ijaw youths is no doubt a litmus test for the board to assert itself in the pursuit of its statutory objectives.

Taneh Beemene

Business

AFAN Unveils Plans To Boost Food Production In 2026

Published

1 day ago

January 9, 2026

The Tide

The leadership of the All Farmers Association of Nigeria (AFAN) has set the tone for the new year with a renewed focus on food security, unity and long-term growth of the agricultural sector.

The association announced that its General Assembly of Farmers Congress will take place from January 15 to 17, 2026 at the Abuja Chamber of Commerce and Industries, along Lugbe Airport Road, in the Federal Capital Territory.

The gathering is expected to bring together farmers, policymakers, investors and development partners to shape a fresh direction for Nigerian agriculture.

In a New Year address to members and stakeholders, AFAN president, Dr Farouk Rabiu Mudi, said the congress would provide a strategic forum for reviewing past challenges and outlining practical solutions for the future.

He explained that the event would serve as a rallying point for innovation, collaboration and economic renewal within the sector.

Mudi commended farmers across the country for their determination and hard work, despite years of insecurity, climate-related pressures and economic uncertainty.

According to him, their resilience has kept food production alive and positioned agriculture as a stabilising force in the national economy.

He noted that AFAN intends to build on this strength by resetting agribusiness operations to improve productivity and sustainability.

The AFAN leader appealed to government institutions, private investors and development organisations to deepen their engagement with the association.

He stressed the need for collective action to confront persistent issues such as insecurity in farming communities, climate impacts and market instability.

He also urged members to put aside internal disputes and personal interests, encouraging cooperation and shared responsibility in pursuit of national development.

Mudi outlined key priorities that include increasing food output, expanding support for farmers at the grassroots and strengthening local manufacturing through partnerships with both domestic and international investors adding that reducing dependence on imports remains critical to protecting the economy and creating jobs.

He stated that the upcoming congress will feature the launch of AFAN’s twenty-five-year agricultural mechanisation roadmap, alongside the announcement of new partnerships designed to accelerate growth across the value chain.

Participants, he said wi also have opportunities for networking and knowledge exchange aimed at transforming agriculture into a more competitive and technology-driven sector.

As part of its modernisation drive, AFAN is further encouraging members nationwide to enrol for the newly introduced Digital ID Card.

Mudi said the initiative will improve transparency, ensure proper farmer identification and make it easier to access support programmes and services.

Reaffirming the association’s long-term goal, he said the vision of national food sufficiency by 2030 remains achievable if unity and collaboration are sustained.

He expressed optimism that with collective effort, Nigeria’s agricultural sector can overcome its challenges and deliver a more secure and prosperous future.

Lady Usendi

Business

Industrialism, Agriculture To End Food Imports, ex-AfDB Adviser Tells FG

Published

1 day ago

January 9, 2026

The Tide

Former Senior Special Adviser on Industrialisation to the President of the African Development Bank (AfDB), Professor Banji Oyelaran-Oyeyinka, has urged the Nigerian government to urgently industrialise the agricultural sector as a pathway to food security, economic diversification, and sustainable job creation.

Professor Oyelaran-Oyeyinka made the call while speaking at the Oyo State Economic Summit held at the International Institute of Tropical Agriculture (IITA), Ibadan, during a lecture titled “Industrialising Agriculture for Economic Development and Food Security: Enhancing National Economies and Sub-National Entities.”

He cautioned that despite Nigeria’s vast arable land and its position as a leading global producer of crops such as cassava and yams, the country remains food-deficient and heavily dependent on costly food imports.

He highlighted that Nigeria spends over one trillion naira annually importing wheat, rice, sugar, and fish, a persistent trend that drains foreign exchange, undermines local farmers, weakens industrial competitiveness, and fuels unemployment.

The development economist argued that the solution lay in transforming agriculture from a subsistence activity into a modern, industrial enterprise capable of producing surplus, supporting manufacturing, and driving broad-based economic growth.

He explained that industrialising agriculture does not mean replacing rural communities with factories, but rather empowering farmers with technology, skills, infrastructure, and market access to raise productivity and incomes.

According to Professor Oyelaran-Oyeyinka, Nigeria’s low agricultural productivity reflected deeper structural challenges, including weak education systems, limited skills, and inadequate investment in technology and infrastructure.

He noted that countries that successfully transitioned from low-income to middle-income status did so by modernising agriculture alongside industrial development, creating strong linkages between farms, processing industries, and markets.

Oyelaran-Oyeyinka highlighted stark yield disparities between Africa and Asia, noting that cereal yields across African countries remain less than a third of those achieved in East Asia.

This gap, he said, explains why African economies struggle to compete globally and why industrialisation efforts have stalled.

Professor Oyelaran-Oyeyinka outlined key pillars of agricultural industrialisation, including mechanisation, value addition, integrated supply chains, access to finance, improved seed systems, and targeted investment in human and technological capabilities.

He stressed that farms must be treated as “factories without roofs,” capable of feeding into agro-processing, manufacturing, and export industries.

The visiting professor at The Open University in Milton Keynes said the economic benefits of such a transformation would be far-reaching, including reduced dependence on oil, large-scale job creation, significant foreign exchange savings, and stronger national food security.

Drawing lessons from Vietnam, he described how deliberate agricultural modernisation helped transform the Southeast Asian country from a food importer into one of the world’s leading exporters of rice, coffee, cashew, and seafood.

Vietnam’s agribusiness exports, he said, now generate tens of billions of dollars annually and underpin the country’s wider industrial success.

He attributed Vietnam’s success to consistent policies, heavy investment in agro-processing, strong farmer–industry linkages, and the use of special economic zones to drive value addition and export competitiveness.

Oyelaran-Oyeyinka noted that similar models are emerging in Nigeria, including in Oyo State, but warned that they require reliable infrastructure, policy stability, and empowered governance to succeed.

The professor called on state governments to prioritise power, roads, and logistics, strengthen agricultural extension services, and create efficient special agro-industrial processing zones that attract major domestic and international investors.

He also urged the private sector to view agriculture as a profitable business frontier rather than a social obligation, noting that Nigeria’s future prosperity depended less on oil and more on harnessing the productive potential of its land and people.

“We are a nation that can feed itself and others, yet we remain food-insecure and overly dependent on imports. This paradox is holding back our economy.”

“Industrialising agriculture does not erase our rural roots; it transforms them into engines of productivity, wealth creation and national development.”

“Subsistence agriculture is both a cause and a consequence of technological backwardness, and no country has reached middle-income status without first modernising its agriculture.”

“A farm must be treated as a factory without a roof, connected to processing, logistics, finance and markets. Vietnam shows that agricultural transformation is not accidental; it is the result of deliberate policies that link farmers to industry and global markets.”

“The seeds of Nigeria’s prosperity are not buried in oil wells; they are sown in the fertile soils of our ecological zones,” he said.

Lady Usendi

Business

Cashew Industry Can Generate $10bn Annually- Association

Published

1 day ago

January 9, 2026

The Tide

The President of the National Cashew Association of Nigeria (NCAN), Dr Ojo Ajanaku, has said Nigeria could earn $10 billion annually from cashew production, with $3 billion coming from cashew sales alone.

Ajanaku made this known during a press conference organised ahead of the 4th National Cashew Day, scheduled to hold from Jan. 22 to Jan. 24 in Abuja, with the the theme: “Unlocking the Full Potential of Nigeria’s Cashew Industry”.

He said that poor export documentation and weak repatriation of proceeds were causing major losses to the Nigerian economy.

“A substantial volume of cashew exported from Nigeria leaves the country without proper export proceeds forms, as exporters allegedly avoid bringing earnings back into the country,” he said.

He said during the last export season alone, Nigeria reportedly exported over 400,000 tonnes of cashew valued at about $700 million.

Ajanaku noted that deliberate investments in production and processing could unlock far greater potentials.

“If Nigeria produces just two million tonnes of cashew annually, which is achievable in less than five years, and sells at an average of $1,500 per tonne, the country would earn about $3 billion yearly,” he said.

He added that beyond raw cashew exports, enormous value lies in processing and by-products such as Cashew Nut Shell Fluid (CNSF) and cashew cake, which are largely wasted locally.

“In Vietnam, cashew cake alone sells for about 95 cents per kilogram, while in Nigeria processors pay to dispose of it as waste,” he noted.

Ajanaku explained that full local processing of cashew and its by-products could generate not less than $10 billion annually for Nigeria while creating thousands of jobs across the value chain.

He stressed that Nigeria has the production capacity, while countries like Vietnam possess advanced processing technology.

The NCAN President further disclosed that the association is strengthening partnerships with key government institutions, including the Ministry of Finance, the Federal Ministry of Agriculture and Food Security, NEXIM Bank, and other agencies to reposition the sector.

He added that a landmark Memorandum of Understanding has been signed between Nigeria and Vietnam to facilitate technology transfer and deepen cooperation in cashew processing.

He expressed optimism that with sustained government support and effective regulation, the cashew industry could become a major driver of economic growth, foreign exchange earnings, and industrial development in Nigeria.

“Producing states should be given priority. For example, Kogi State, which has the highest cashew production in the country, has no factory. A lot of potentials can come from Kogi State for the country,” he said.

Also speaking, NCAN National Secretary, Augustine Edieme, said strategic plans are being made to showcase Nigeria’s potentials during the 4th National Cashew Day, which he described as a key opportunity to attract bigger investments and investors into the industry.

“We are not just talking about the cashew seeds. We need to crack the fruit shell and discover the value in cashew shells. Industrialisation of the cashew industry is key to driving the Nigerian economy,” he said.

The representative of the Federation of Agricultural Commodity Associations of Nigeria (FACAN), Sunday Ojonugwa, pledged that FACAN would optimally support the cashew association to ensure the sector reaches its full potential.

Lady Usendi