Adewale Tinubu Kicks against Nigeria’s Over-reliance on IOCs, Subsidy Payment

•Advocates empowering national oil firms, ending subsidies

Emmanuel Addeh in Abuja and Peter Uzoho in Lagos

Group Chief Executive, Oando Plc, Mr Adewale Tinubu, has spoken against the country’s over-reliance on International Oil Companies (IOCs), stressing that indigenous firms should, instead, be consciously empowered.

Many IOCs have recently signalled their intention to leave Nigeria’s onshore oil assets, with local oil firms saying they have the capacity to take over the facilities being left behind.

In a keynote address, titled, “The Winning Oil and Gas Industry Strategy,” at the 3rd Guyana Energy Conference and Supply Chain Expo, Tinubu also kicked against the payment of subsidies on fuel by the government.

A statement by the oil firm said Tinubu shared the strategic insights into navigating the complexities of the oil and gas industry and provided a roadmap for success, emphasising innovative approaches to ensure long-term sustainability and profitability.

The conference, which held at the Guyana Marriott Hotel, Georgetown, had the theme, “Fuelling Transformation and Modernisation,” and saw a diverse range of attendees from different regions.

The statement said Tinubu engaged in discussions on shaping the future of the energy sector while highlighting current investment opportunities and exploring developments to drive positive change and innovation.

Guyana’s oil industry had rapidly ascended to a unique position in the global energy terrain with the discovery of the offshore Stabroek Block, exceeding 9 billion barrels of oil equivalent.

Since 2015, the country has become a notable player, echoing the trajectory of Nigeria’s oil industry in its early years.

According to the release, both Guyana and Nigeria share the narrative of substantial offshore oil discoveries, marking economic opportunities that have significantly influenced their respective GDPs.

Tinubu, the statement said, delved into the similarities of both countries’ oil industries, positioning Oando as a key contributor to the discourse.

As Group Chief Executive of Oando, operating in Nigeria’s mature oil sector, Tinubu, the statement stressed, brought invaluable insights from a nation that had navigated similar challenges and opportunities over the years.

The statement regarding Tinubu, “His comprehensive address covered a spectrum of challenges, ranging from the impact of COVID-19 and geopolitical tensions to inventory gaps and the evolving landscape of energy sources.

“Drawing from experiences in Nigeria, where crude oil theft and pipeline vandalism result in a daily decline of over 400,000 barrels, he emphasised the significance of taking a proactive approach to challenges such as operational security threats.

“Addressing operational costs, infrastructure deficiencies, and regulatory frameworks, Tinubu’s insightful analysis provided a comprehensive overview of obstacles faced by the industry globally and Nigeria particularly, while emphasising their relevance to Guyana’s fledgling industry.”

The Oando chief executive underscored the need for strategic planning and international cooperation to effectively resolve the challenges.

Furthermore, the keynote highlighted crucial points essential to the development of the oil and gas sector in Guyana, including creating an enabling environment, establishing alternative financing institutions, and maximising opportunities during peak oil prices.

Tinubu stressed the importance of proactive investments in infrastructure ahead of demand and linked Gross Domestic Product (GDP) growth as a lifeline for economic activities to thrive beyond the oil sector.

The statement said, “Whilst encouraging strategic partnerships, Tinubu cautioned against an over-reliance on international oil companies and advocated empowering national companies, aggressively ensuring skills transfer, and building a robust indigenous energy sector.

“Similarly, the need for policy reforms, national infrastructure development, and proactive planning for population growth were outlined as critical elements for success.

“He urged against subsidies, while also emphasising the need for unifying foreign exchange rates and diversifying energy sources for long-term resilience.”

According to the release, the presentation concluded with a call to invest in people, recognising them as an asset in driving the industry forward.

The statement stressed that the Guyana Energy Conference provided Oando a unique platform to showcase its expertise and achievements as a leading indigenous energy company in Nigeria and Africa, bridging the gap with the Caribbean region.

“The conference successfully fostered open dialogue, promoting a collaborative cross-regional approach to overcoming obstacles and embracing sustainable practices in Guyana’s evolving energy sector,” Oando said.