Wabote: Bad Corporate Governance Biggest Drawback for Indigenous Oil Coys

Emmanuel Addeh in Abuja

The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Simbi Wabote, has identified the lack of good corporate governance as a major impediment to the growth of indigenous oil and gas companies in Nigeria.

Wabote spoke when the Chief Executive Officer of Heritage Energy Operational Services Limited (HEOSL), Mr. Ado Oseragbaje, and other key officials of the firm visited him at the board’s liaison office in Abuja.

A statement by the organisation quoted the executive secretary as therefore advising local oil firms to adopt strict corporate governance guidelines in their operations if they want their firms to grow sustainably.

The companies were equally encouraged to comply with the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act and to consult regularly with the NCDMB.

Wabote deplored a situation where owners and directors of indigenous operating oil and gas firms serve as contractors to their companies, thereby contravening corporate governance procedures and delivering poor services.

The prevalent negative practice, he warned, could negatively affect the divestments of assets by some international oil and gas entities to indigenous firms.