That Inflammable Battle Between Fuel Depot Owners and the Cardoso Family

There is a strong allegation of threat to the eight petroleum depots and other oil and gas facilities at Kirikiri Town, Apapa, in Apapa Local Government Area of Lagos state. The dreadful plan of the adversaries, according to one of the senior workers, is to disrupt the movement of vessels supplying fuel to these depots. This, he stated matter-of-factly, would inevitably cause a major fuel crisis in the country.

The disposition of some stakeholders in the oil and gas industry is that the Federal and Lagos State governments must, as a matter of urgency and necessity, proactively intervene to prevent this looming crisis as the success of such a vicious sabotage would almost instantly plunge the country into a major fuel and security crisis.

To be sure, just two of the eight depots, Swift Oil Limited and BOVAS Group operate over 200 fuel outlets in the country with about 35million litres of fuel in the belly of their petroleum storage depots. This means that the gaseous hydrocarbons in the tanks of these two companies alone could serve the entire country for, at least, two or three days. It becomes easy then to visualise the ruinous impact that shutting down these two behemoths would have, how much more eight of them. This explains why both Lagos State and the Federal Government must not treat this threat with the usual mute indifference because it portends frightful consequences for the economy and security of the nation.

But it wasn’t as if these threats came as a total surprise. The tragic drama that played out on Tuesday, August 8, 2023, at the premises of these organisations, was a dismal omen of what was to come. On that day, Bailiffs and some officials of the High Court of Lagos State besieged Kirikiri Town and sealed off the eight depots belonging to these members of the Kirikiri Town Depot Owners’ Association as well as residential buildings in the community. The depot owners received this news of what looked like a judicial coup with an incredulous gasp. First, they were not in any legal tussle with anyone, neither were they a party to any suit over their titles. They therefore came to the grim conclusion that this must be one of those extortion rackets that have become the ordeal of many property owners in Lagos due to the unconscionable acts of some family outlaws and land grabbers backed by some mercenary Lawyers. But this one would even be much more complicated.  Perhaps an accentuated version by a more resolute group.

The Depot Owners  soon found out that a group of nine persons that claimed to be the great grandchildren and members of the family  of the original owner of the land they bought had gone to the court and shockingly obtained a Consent Judgement given by Honourable Justice Jumoke Pedro on Monday,  June 23, 2014 in Suit No. M/7/2014. The very Honourable Judge gave this far reaching judgement without giving those so gravely affected the opportunity of appearance to canvas their position. A suit that the outcome could mortally alter the economic  wellbeing of this country went through a full adjudication almost covertly without making those directly affected parties to the case. It is important to stress this acute omission because the judiciary cannot exist without the trust and confidence of the people. It is in fact the belief by the people that their Judges are fair and impartial that sustains and drives the judiciary.

Now, here is what happened.  Those nine people that claimed to be members of Cardoso family, the parties to the suit, split themselves into claimants and defendants over the Estate of late Lawrence Anthonio Cardoso,  the authentic owner of the Estate. This is a very familiar extortionist strategy that is prevalent in Lagos. It is commonplace. And true to the usual outcome, they were given a sweeping Consent Judgement that set aside all previous dealings in properties forming part of Lawrence Anthonio Cardoso Estate while the Administrator-General and Public Trustee of Lagos state was authorised and mandated to take possession of all properties in the estate.

The Lawyers to the depot owners felt strongly that the court was misled to give this horror inflicting judgement. And so they approached the court with an Originating Summons in suit No. LD/1679/LM/2017 to redress this judgement. But Justice O. O. Ogunjobi would not hear the case. Instead he referred them to the Lagos Multi-Door House for mediation. Expectedly, the judgement creditors, the group of nine allegedly demanded N500million from each of the eight organisations. The serious minded business moguls behind the depots could not take this barefaced brigandage. And so their Lawyers returned to the courtroom. But their

suit was dismissed by Hon. Justice O. O Ogunjobi in a judgement delivered on Monday, July 10, 2023. And pronto, on that same day, the Applicants obtained a warrant of possession for the execution of the judgement. This is despite the fact that the judgement contained no order for possession and was essentially declaratory and not amenable to execution.

Now, to appreciate the curious thing about this matter in issue, you need to understand the fact that none of these depot owners bought their land from Cardoso, the original owner of the estate who died on February 11,1940. For instance, it was only in 1977, about 37 years after Cardoso’s passing, that one Prince Jeremiah Cousin Mosheshe bought a parcel of land from the six biological children of the late Lawrence Anthonio Cardoso. The Prince, Mosheshe, did not forget to register this land with the Lagos State Land Registry and indeed perfected his title by obtaining Governor’s Consent.

In the next 20 years, more people would acquire varying parcels of land from the late Cardoso children and grandchildren, in the same manner that the children and grandchildren of this Prince Mosheshe also sold parcels of their land acquired from the Cardoso family. Among those that bought their lands from the Mosheshes were some of these fuel depot owners that operate under the aegis of Kirikiri Town Depot Owners’ Association. Having done due diligence and convinced they had a perfect title that paraded the signature item called Governor’s Consent, they commenced their capital intensive petroleum business on these lands.   For over 20 years they ran their businesses without any hindrance. But all that changed on that Tuesday, August 8, 2023, when some Bailiffs and court officials sealed off their properties and many residential buildings in Kirikiri Town.

In their counter affidavit, these purported members of Cardoso family, claimed that Lawrence Anthonio Cardoso died intestate and dispute subsequently arose among his children over the distribution of his property.  They further claimed that some of the children sold some parcels of land without obtaining Letters of Administration to administer the Estate. Then,  after over 75 years of Cardoso’s death, one faction of his family members suddenly instituted a suit against another faction and the final outcome was the sealing of eight depots through a process that may be viewed by the victims as deliberately opaque.

And now, in a publication on Monday, November 20, 2023, the Lawrence Anthonio Cardoso family, led by the Family Head, Chief Tunlese Cardoso,  came out to put up a disclaimer addressed to the Inspector General of Police and the general public describing the  nine judicial adventurists as the unscrupulous members of the family “who have been working with some notorious land grabbers in Lagos to deny people who genuinely bought and leased landed property from our family in Kirikiri Town for a long time, the right to own and enjoy their properties…”.

From this publication alone, it is clear that the owners of the sealed depots and other oil and gas facilities as well as residential buildings are mere victims of a conclave of predatory land owners and the ritual of extortion still pervasive in the acquisition or disposition of family estates in Lagos.

The Executive Governor of the State, Babajide Sanwo-Olu understands these convoluted transactions in his State. For this reason, he allegedly brokered a temporary truce that allows the depot owners to continue to carry out their businesses pending the determination of their appeal. But now, the group of nine and their agents are reportedly threatening to disrupt their business in breach of the deal reached with the Executive Governor. And this is why it is critical for the Executive Governor of Lagos State and, indeed, the Federal Government to make a crucial intervention that will bring about a lasting resolution to this dispute. And the time is now. Anything to the contrary is to set in slow motion a process that will culminate in an  economic catastrophe in Nigeria.

Fuel subsidy: FG speeds up implementation of MOU to avert industrial action

When Tuesday October 30, 2023, President Bola Ahmed Tinubu wrote to the Senate to seek approval for N2.18 trillion Supplementary Budget, he did not mince words in pointing at the urgency of the matter at issue.

Urging the Senate to “speedily” approve the budget, it was obvious, even to the law makers that the matter at hand requires expeditious attention.

And at the heart of that request, requiring speedy attention is the implementation of the 15-point Memorandum of Understanding, MOU, signed by the government and Labour Unions Leaders on October 3, 2023 in Abuja.

The agreement includes the Federal Government approval of a wage award of N35,000 to all Federal Government workers beginning from the month of September pending when a new national minimum wage is expected to have been signed into law, suspension of collection of Value Added Tax (VAT) on Diesel for six months beginning from October, 2023.


Federal Government also agreed to vote N100 billion for the provision of high capacity CNG buses for mass transit in Nigeria. The Federal Government also agreed to pay N25,000 per month for three months starting from October, 2023 to 15 million vulnerable households, including pensioners, commitment on the part of the federal government to the provision of funds as announced by the President on the 1st of August broadcast to the Nation for Micro and Small Scale Enterprises. The MSMEs beneficiaries should commit to the principle of decent jobs.

The situation today is that the federal government, in a bid to stave off disruptive labour unrest, has commenced the implementation of the MOU.

The Supplementary Budget which the President sent to the Senate on Tuesday requiring speedy treatment was in a bid to appropriate the needed funds for the implementation of critical aspects of the MOU.

In that N2.18 trillion Supplementary Appropriation is the sum of N210 billion for the agreed wage award and another N400 billion for Cash Transfer to vulnerable households, while another N200 billion is for Seed and Agricultural Inputs and Equipment.

Just last week Friday, seven CNG Conversion Centers were inaugurated with more coming up across the country, according to Zach Adedeji, Chairman of the CNG Conversion Committee, while two CNG buses were handed over to Olusesan Adebiyi, the State House Permanent Secretary, at the presidential villa, Abuja.

Provisions are also being made for initial 55,000 CNG conversion kits to kick start an Auto Gas Conversion Programme.

On Refineries, the Presidential Committee had visited the Refineries, ascertained their rehabilitation status and assured the nation that Warri Refinery and Petrochemicals would resume pumping of fuel before the end of the year.

In listening to the yearnings of the Academic Staff Union of Universities (ASUU), the President , Bola Ahmed Tinubu, last week approved a partial waiver of the “No Work, No Pay” order on members who participated in the last 8 months long strike and ordered the release of four months of their withheld salaries.

In a similar vein, in commemoration of the 2023 International Day for the Eradication of Poverty last week, President Tinubu launched the disbursement of N25,000 to 15 million households for three months as a social safety net.

To complement the efforts of the Federal Government and avert a face off with Labour is the commendable moves by some private sector players as exemplified by the Depot and Petroleum Products Marketers Association of Nigeria, DAPPMAN, an Association that threw its weight behind the government’s decision to end the subsidy regime and to deregulate the downstream sector of the oil industry. DAPPMAN, leading other oil marketers, are now ready to donate a number of CNG buses to the federal government to help mitigate the effects of petrol subsidy removal.

According to DAPPMAN chairman, Dame Winifred Akpani, the donation is to support the federal government’s post-subsidy palliative measures.
She said: “We collectively agreed that we’re going to work at providing real mass transit buses that work. The ones that run on CNG, which is a compressed natural gas and diesel interchangeably,” the DAPPMAN Chair said.

For this marketers’ association, it is walking the talk. DAPPMAN had been in the forefront of the calls for the removal of fuel subsidy affirming repeatedly that it will put an end to fuel scarcity, eliminate unnecessary hardship on Nigerians seeking to buy fuel, reduce waste and stimulate responsible consumption of this petrol .

Now that the federal government has yielded to the calls and abolished the subsidy, DAPPMAN has also taken the lead in support of government’s bold and creative actions towards cushioning the harsh effects of the subsidy termination.

Another good news is that of the planned injection of fresh $10 billion into the Nigerian economy in the coming weeks. This, the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun says would provide the much-needed relief to a liquidity squeeze that has been adversely affecting the Naira.

He emphasized that the substantial inflow is expected to play a significant role in bolstering Nigeria’s economic stability and alleviating the pressures on the national currency.

It is also anticipated that the fresh inflow will help to open the official forex window to oil marketers to accelerate their quick return to business and begin fuel importation to help stabilise fuel supply and distribution.

Other experts have added that government should look into streamlining the cost of importation of fuel by charging the taxes in local currency. This, they insist, will reduce the cost of fuel import and further help to reduce the price of fuel for Nigerians thus complementing government’s much needed efforts in this direction.

Other efforts by the government to boost forex inflow is the $3bn emergency loan the Nigerian National Petroleum Company Limited (NNPCL) secured from Afreximbank.

An analyst said: “Goldman Sachs is an external asset manager to the CBN, so using NNPC’s account that CBN manages with Goldman as an unsecured credit line to tap $10bn for the purposes of clearing outstanding forwards and stabilizing the exchange rate back to the N800 range is plausible,” he said.
“This means that Goldman Sachs will net off gas revenues from WAGPCO and NLNG over an extended period to repay back.”

This approach, which involves an upfront cash loan against proceeds from a limited amount of future crude oil production, was used by the NNPCL to secure the $3 billion emergency loan from Afreximbank.

With all these proactive measures aimed at meeting the agreements reached with labour and to reignite the economy with the ultimate objective of engendering economic growth and alleviating poverty, the contention out there is that the labour/government face off is about to be resolved for the benefits of all Nigerians.

Said Olusesan Ige, an Abuja based Media Content Creator: “The fact on ground today is that the federal government has shown good faith, good intentions, it is obvious, even for the Labour also to see. The issue of ultimatum no longer holds. I think labour will sheath the sword now that all their requests are being swiftly attended to.”

FOREX Scarcity: Resolving Oil Marketers’ Major Challenge

With rising foreign exchange rate and crude oil prices in the international market, Nigeria’s economy  is, no doubt in dire straits.

Since May 29, 2023 when the President, Bola Ahmed Tinubu, announced subsidy removal on Premium Motor Spirit (PMS) popularly known as petrol, Nigeria’s economy has continued to face excruciating challenges.

With removal of subsidy, the government’s intention was to quench Nigerian National Petroleum Company (NNPC) Limited’s age long monopoly of the market as every attempt by successive governments’ policies to liberalize the market failed while prices of fuel were kept within the regulated range.

The PPPRA, now merged with NMDPRA (as a result of Petroleum Industry Act) whose responsibility was to regulate the market, became a toothless bulldog since NNPC was the only player in the sector.

The removal of subsidy raised the hope of oil marketers who had for so many years agitated for full downstream deregulation through a level playing ground with access to forex at the Central Bank of Nigeria (CBN) official rate like NNPC does. The idea really was that with market determined prices, all players in the sector will be able to operate on an even keel.

With enthusiasm, marketers rushed to submit applications for fuel import through the Nigerian Midstream and Downstream Petroleum Regulatory Authority. To date, the Authority has issued a total of 94 importation licenses to oil marketers.

According to the Chief Executive, NMDPRA, Farouk Ahmed, out of the 94 petrol permits, only eight suppliers delivered eight cargoes of PMS totalling 251,000 metric tons within the period June – September 2023 due to devaluation of the naira and high foreign exchange rate.

According to him, “94 wholesale suppliers were issued permits to import PMS into the country. Eight suppliers delivered eight cargoes of PMS totalling 251,000 MT within the period June – September 2023. This low performance was due to the challenge of forex liquidity which has constrained the Oil Marketing Companies’ ability to import the product.”

He, however, said the Federal Government was hopeful that the measures being taken to improve the stability of the harmonized forex market; would help to ensure that more oil marketing companies alongside the Nigerian National Petroleum Company Limited are able to participate in fuel importation. 

Also, just last week, Chief Executive Officer, Northwest Petroleum and Gas Limited, Dame Winifred Akpani, lamented the state of fuel supply in the country, saying that less than 10 percent of the licensed marketers since May, could import due to the stifling Naira exchange rate, leading to a high cost of operations.

Market watchers have expressed optimism that the challenge of fuel importation arising from forex shortage may soon be address with the Minister of Finance and Coordinating Minister of the Economy hinting last week that some 10 billion US dollar would be injected into the economy in the next few weeks.

Silas Olaniyan, a former banker and an Investment analyst posited that the federal government should prioritise fuel importation by the big oil marketers and depot owners once these funds are injected into the economy.

He said: “Nigeria’s economy is fuel powered. The economy runs almost 85 per cent on PMS. If all is well with fuel supply and distribution, all will be well with the economy. It is the reason why the federal gov should prioritise forex supply to oil marketers once the the foreign inflow comes in. It is the right way to go.”

Over the years, access to Forex has been the main albatross to smooth fuel import into the country by the oil marketers, thereby making a mess of every attempt to break the stranglehold of NNPC on the market and ensuring that every half hearted attempt at deregulating the sector came to grief.

Meanwhile, the 21 depots operated by NNPC are not functioning, according to the Independent Petroleum Marketers Association of Nigeria (IPMAN). Industry sources insist that NNPC Limited may not be as liquid, PMS wise, as much as it is claiming. 

A the current selling price of between N595 and N610 per litre in Lagos and between N610 to N620 elsewhere, the contention is that NNPC Limited is not coming clean to Nigerians on the realities of the fuel market regarding pricing and product supply.  Yet, the value of the naira has been steadily sliding downwards, reaching an abysmal low on the parallel market on Friday, October 27, 2023 with one dollar exchanging for N1, 180,  although CBN is steady at N1,025 to a dollar.

The price of crude oil has also been on an upward swing, hovering between $89 to $92 per barrel in one week. This was against average $75.47 in May when the government announced removal of subsidy on petrol. Yet, the pump price of fuel in Nigeria remains the same at N595 and N617. One of the oil marketers stated categorically that, “even if the government provides us with foreign exchange today, nobody is going to be in a hurry to import petrol and sell at that price”.

Recall that between 2010 and 2016, the Depot and Petroleum Products Marketers Association (DAPPMAN) and Major Oil Marketers Association of Nigeria, MOMAN relied on Federal government’sq promise and resorted to massive fuel importation only  to get their fingers burnt as the Federal Government failed to honour its own side of the bargain. At a point, their unpaid subsidy claims and matured Letters of Credit (LCs) arising from the old subsidy regime rose to $2 billion. Of this amount, only 20 marketers were paid

N69 billion after the National Assembly’s intervention three years later. Some of them are still owing to date.

Market watchers contend that the President Bola Ahmed Tinubu government, having demonstrated enough courage by ending the fuel subsidy regime, should walk the talk by ensuring that oil marketers are not put in a dire straits again as this will spell doom for the new policy and indeed the economy. 

Experts reasoned that allowing NNPC to continue as sole importer of fuel into the country has not only returned the country to subsidy regime, but has also weakened the economy.

Already, there is a report that  N169.4 billion was paid as fuel subsidy in August. If that is the case, analysis of data provided by marketers and some industry stakeholders showed that the federal government could be paying as much as N1.68 trillion from September to December as subsidy this year as actual price of PMS and going by international market dictates local price at the pump should be between N890/900 per litre. Nigeria is in the grips of foreign currency shortages, which have seen the naira weaken to record lows on the parallel market. The new Central Bank Governor, Mr Yemi Cardoso had last week said that policymakers faced a nearly $7 billion backlog in foreign exchange demand.

Despite this, the Chief Executive Officer of NNPC Limited, Mele Kyari told energy experts  audience last week that government had not reintroduced a decades-old petrol subsidy scrapped at the end of May, despite concerns from investors of a de facto return as pump prices have not moved since July, despite a more than 30% rise in oil prices. “We are recovering our full cost from the products that we import. No subsidy whatsoever,” he said.

Experts however, warned that returning fuel subsidy at this time will lead to policy somersaults which could have very grave implications for the economy. It is for this reason that they urge the government to spare no efforts in ensuring that right incentives are put in place to bring the oil marketers  back into business and ensure keen competition among all players including NNPC Limited.

FG: Nigeria Attracted over $8bn in Deepwater Oil, Gas FIDs in Less Than One Year

The Federal Government efforts at returning the oil and gas  sector its past  glory  in the area of investment may have started yielding fruits as it claimed  that it  has attracted td over $8 billion in deepwater oil and gas Final Investment Decisions (FIDs) in less than one year.

This a significant testimony underscoring recent presidential actions to remove the existing bottlenecks in the sector.

Olu Verheijen, Special Adviser on Energy to President Bola Tinubu, who disclosed this at the just recently concluded 2025 Africa CEO Forum in Abidjan, Côte d’Ivoire, explained that Nigeria has recently focused on improved fiscal terms, streamlined contracting timelines and greater clarity to local content rules.

According to a statement signed by Senan Murray,  the Team Lead, Communications, Office of the Special Adviser to the President on Energy, it stated that as a result of these reforms, including the restructuring which is enabling gas-to-power commercial viability, “We moved from gridlock to greenlight, and investors responded.”

Delivering her message to policymakers, investors, and industry leaders across the continent, Verheijen insisted that “Capital is not African or foreign”, explaining that “It is rational; and Africa must compete for it.”

Multi-billion-dollar deepwater and LNG projects are global capital territory, Verheijen said, and Africa must partner smartly, not from dependency, but from aligned strategic interest.

Citing the fact that Africa attracted $340 billion in upstream capital between 2011 and 2015, a figure expected to drop to less than $130 billion by 2026–2030, she described it as “not a funding winter”, but “a structural decimation.”

The Special Adviser to the president, she said, capital is increasingly going to projects with strong economics, low carbon intensity, and predictable governance—the factors attracting billions of dollars in new investment to the Permian Basin, Guyana, and Brazil.

She argued that if Africa wants a larger slice of the $500 billion in global upstream spend annually, it must offer the same clarity and competitiveness.

Verheijen noted that Nigeria has been able to prove that this approach works. “In under a year, Nigeria unlocked over $8 billion in deepwater oil and gas Final Investment Decisions (FIDs) through decisive presidential action, focused on improved fiscal terms, streamlined contracting timelines, greater clarity to local content rules, and power sector reforms enabling gas-to-power commercial viability,” she was quoted as saying.

Verheijen urged African investors, Development Finance Institutions (DFIs), banks, pension funds, and sovereigns—to be strategic in focus, and to strive to fill the vacuum left by International Oil Companies (IOCs), not just with funding, but with fit-for-purpose instruments and risk-sharing structures.

“Our sweet spot is onshore, shelf, and domestic gas. That’s where African players must dominate, because we understand the terrain, the risk, and the reward,” the presidential aide maintained.

She also celebrated the feats of African private sector champions, like Seplat, Oando and Renaissance, who she argued are no longer just “local players.”

Renaissance Africa Energy Consortium’s acquisition of Shell’s onshore JV, she said, represents “a symbolic transition from colonial-era concessions to indigenous control.”

On the new 650,000 barrels per day Dangote Refinery, the largest single-train refinery in the world, she said it was: “Built by African capital, African hands, and African ambition,” noting that “this is not just infrastructure, it is proof that African industrial scale is not aspirational. It is operational.”

Seplat’s recent 390 mmcfd gas supply deal with the Nigerian National Petroleum Company Limited (NNPC), she said, I’d “not just output”, but “energy security”.

“Nigeria’s attainment of an increase in indigenous equity in gas, from 69 per cent to 83 per cent, is not just a statistic but instead a seismic shift in ownership and control of Africa’s energy future,” the special adviser explained.

“But global capital still matters. International Oil Companies, which still account for over 50 per cent of production and capital expenditure in sub-Saharan Africa, are now showing signs of an evolving approach.

“They’re no longer chasing barrels. They’re chasing value: low-cost, low-carbon, (and) de-risked assets. Let’s be realistic: Africa cannot negotiate terms on capital that hasn’t yet arrived. Investment must come first; returns and benefits will follow,” she pointed out.

Verheijen posited that Africa must move beyond sentiments, consciously pursue clarity in policy and be strategic in its intentions, insisting that nobody will give Africa the future, but that it must be built deliberately.

“We must move beyond appeals for support. Africa must become an investment destination by design; anchored in policy clarity, commercial logic, and strategic intent. When we get that right, capital won’t hesitate, it will pursue us. The future will not be given to Africa. It must be built—deliberately, unapologetically, and on our terms,” she stated.

Meanwhile, Nigerian oil and gas service providers have started jostling for a share of contracts in three big projects currently ongoing in the nation’s upstream petroleum sector, including Shell’s $5 billion Bonga North and $122 million Iseni Gas Projects, as well as TotalEnergies’ $550 million Ubeta Gas Project.

Chairman of the Petroleum Technology Association of Nigeria (PETAN), an umbrella body of the local service firms, Mr. Wole Ogunsanya, disclosed this to reporters during the PETAN Golf session at the just-concluded Offshore Technology Conference (OTC) held in Houston, Texas, USA.

This was just as Ogunsanya, who is also the Chief Executive Officer of Geoplex, revealed that Nigeria’s participation at the yearly OTC conference has attracted over $8 billion investments to the country’s oil and gas sector.

There were  three landmark FIDs in the Nigerian upstream oil and gas industry  in 2024 starting with the Iseni project in February, followed by Ubeta in September and Bonga North in December.

Already, Shell has awarded a $1 billion contract from the Bonga North project to Italian company, Saipem, in a consortium with two Nigerian contractors – KOA Oil & Gas and AVEON Offshore.

Responding to THISDAY’s question bordering on the opportunities the projects present to the industry and how the local service firms were taking advantage of those opportunities, Ogunsanya admitted the three projects were significant to the country’s oil and gas industry and PETAN members because of the huge opportunities they presented.

He said the companies have already keyed into the Nigerian Petroleum Exchange (NIPEX) portal and anticipating contracts that match the capacities built by his member companies in terms of equipment and products as promoters of local content in the industry.

NIPEX is an electronic contracting platform and a one-stop transaction center for the Nigerian oil and gas industry domiciled at the NNPC Upstream Investment Management Services (NUIMS).

“For PETAN members, we call ourselves think-tank organisations, due diligence organisations and companies. We’ve already logged into the tendering process of all this work”, he said.

Further according to Ogunsanya: “When you take FID, the process of tendering – who does what, is already there on NIPEX and the bidding system that we have in the country. And we’ve worked with NNPC, NUIMS.

“We’ve managed to establish a high level of decorum. Sometimes we align with NIPEX to make sure the codes for you to be able to bid and all that are all sorted out. So, our members are already keyed into the tendering system, and it makes sense.

“We don’t want anything handed over to us on a platter of gold. We want to show that we have the capacity to do it. We want to be fair to every other company in the industry”.

Noting that his member companies were also competing with other firms providing services in the industry despite priding themselves as drivers of local content, he said his members still needed to observe due diligence in the tendering process.

According to him, PETAN companies enjoy the advantage of having more investments, more equipment and more trained personnel in the industry compared to others.

“So, we’re commanding our own share of the market. So, we are keyed into the tendering system, and we’re going to be part of those projects. Some of those contracts are already awarded, and there is a number of PETAN companies that are already in the play for the contracts that will emanate from this FID. We’re doing something higher than that”, the PETAN chairman explained.

As part of proactiveness, Ogunsanya said his association has created a committee called Business Strategy Committee (BSC).

He explained the committee is saddled with the responsibility of looking for his members’ interest in the contracts emanating from the projects, particularly the $5 billion Bonga North project being promoted by the Shell Nigeria Exploration and Production Company Limited (SNEPCo) and what comes to his member companies.

He said his members deserved a sizeable amount of the jobs from the projects owing to their capacity in local content.

According to him, PETAN firms were over 60 per cent in terms of local content when all indigenous companies were aggregated, arguing – “And you’re doing a $5 billion project. If you do the math, we should be commanding a lot of those projects.”

On that note, he said his member companies should be prioritised by allocating at least 25 to 30 per cent of that $5 billion project to them to reflect the capacity they have built over the years.

Ogunsanya further explained: “So this committee is responsible to look at each of the FIDs, the projects that are coming up to make sure that the award is commensurate with the capacity that we have built.

“I can give you an example. If you invested to build capacity but you’re not getting your quota, it’s not fair. You’ve invested in the system to make sure that the capacity is there in the system. The award system does not match your investment – your capacity, versus the work that is there.

“So, with that PETAN BSC committee, that’s their job. And we are telling them, don’t ask for 100 per cent of the PETAN contribution. Ask for something lower. So that it will be very clear that we’re asking less than what we deserve, and the way we’re asking, we said, no, we’re not going to change the system.

“There is a tendering system. There is NIPEX. Everything is there. They will check your technical capacity. You submit commercial. And then you grade everybody. We will participate in that. We’re encouraging our members to go and tender for everything.

“But at the time you’re aggregating the work, at the IOC level, for instance, SNEPCo, at NCDMB, tell me how many PETAN members have won in that $5 billion project. Add all the numbers together. How much is it? Is it $500 million? Is it $800 million? Is it $1.5 billion? If it’s not up to the target we set, give us the right of first refusal.”

He added: “Maybe we didn’t come first. Maybe we came second, third, fourth. So, give us the right of first refusal. We’ll go and ask our members and say, this job, you said $10 million. They said if you accept $9 million, they will give it to you.

“So that gives us the opportunity to say yes or no. And we are doing that deliberately to make sure that we are not claiming right or anything. We want it to be done due diligently.”

Meanwhile, Ogunsanya announced that PETAN’s consistent presence at the OTC in US has attracted investments worth over $8 billion in Nigeria’s oil and gas sector.

He explained that the $8 billion in investments stemmed from equipment purchases, service partnerships, and project funding facilitated through relationships built at the OTC.

He recalled that last year, PETAN supported the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) with their roadshow, and that all the oil fields the agency presented were fully subscribed.

“This is why we are here annually, to connect with the global oil and gas community and bring value back to Nigeria,” he noted.

Ogunsanya further said that PETAN recently concluded a funding agreement for member companies to acquire equipment, adding that a new collaboration was initiated with Senegal, developing its offshore gas infrastructure.

“The future of Nigeria’s oil and gas industry is bright,” he said, adding: “There’s a shift underway with divestments from international oil companies to indigenous firms, and we see it as an opportunity, not a setback.”

He stressed the importance of increasing and sustaining national production, targeting 2.5 million barrels to 3 million barrels per day regardless of global oil prices.

He also highlighted current refining efforts, pointing to a projected refining capacity of 1.4 million barrels daily, including the BUA Group’s ongoing construction of a 350,000-barrels per day refinery.

Promising that PETAN cannot afford to be passive in the efforts to grow the industry, Ogunsanya said the association was working tirelessly to support its members in acquiring critical equipment and raising funds.

He acknowledged that the federal government, NNPC and Nigerian exploration and production companies were united in the mission.

“Our goal is simple: to secure sustainable oil production and revenue generation to support national development.

“The era of halting production due to price fluctuations must end – we must be resilient, consistent, and forward-thinking”, he added.