Mr. Bamanga Jada, the Chief Executive Officer of the Oil and Gas Free Zones Authority (OGFZA), has clarified that international oil companies (IOCs) are not exiting the country but rather divesting into deeper waters and selling off offshore operations.
Jada made these remarks during a televised program in Lagos where he emphasized the long-standing presence of IOCs in Nigeria and their ongoing investments in cleaner and more sustainable energy sources.
Contrary to speculation, Jada affirmed that IOCs have been operating in Nigeria for decades and have made significant contributions to the development of local capacity. He noted that these companies are now transferring technology and expertise to Nigerians, enabling them to take over offshore operations effectively. Additionally, Jada highlighted the shift towards exploring gas in deeper waters as part of the IOCs’ commitment to environmental sustainability and cleaner energy sources.
According to Jada, major players in the industry, such as Shell and Total, are reducing their investments in hydrocarbons due to environmental concerns. Instead, they are focusing on gas exploration, which is deemed more environmentally friendly and sustainable. This transition aligns with President Ahmed Tinubu’s agenda to reduce emissions and promote cleaner energy alternatives.
Addressing concerns about the ease of doing business in Nigeria, Jada emphasized the government’s commitment to eliminating bottlenecks and creating a conducive environment for investors. He cited recent discussions with key government officials, including the Minister of Finance, the Minister of Budget and National Planning, and the Minister of Trade and Investment, aimed at enhancing the efficiency of special economic zones in the country.
Jada reiterated the government’s dedication to improving infrastructure within these zones as part of its agenda to attract more investment. He highlighted the willingness of multinational corporations to invest in gas exploration and production, citing examples of Shell and Total’s investments in gas projects worth over $600 million.
The CEO emphasized the positive impact of President Tinubu’s economic policies, which have facilitated partnerships between government agencies and multinational corporations. He praised the transfer of technology and capacity-building initiatives undertaken by IOCs, underscoring their commitment to supporting Nigeria’s energy sector.
In conclusion, Jada reassured the public that IOCs remain committed to Nigeria and are actively investing in cleaner energy initiatives. He urged stakeholders to support the government’s efforts to enhance the business environment and attract further investment. Overall, Jada’s remarks reflect a sense of optimism regarding the future of Nigeria’s oil and gas industry and its transition towards sustainable energy solutions.
