Experts identify enabling laws critical to oil infrastructure development

L-R Ranti Omole; Hon Ochiglegor Idagbo; Simbi Wabote; Ms Patricia Simon-Hart; Abdulmalik Halilu and; Oyetola Muyiwa Atoyebi (SAN)

By Jerome Onoja

Experts in the Nigeria’s oil and gas industry have identified the creation of suitable laws and policies as key factors in ensuring infrastructure development critical to the industry. They stated this at the 9th Practical Nigerian Content (PNC) forum, which held in Bayelsa in December, 2019, themed “Leveraging Local Expertise for Market Growth and Expansion”. The panellists agreed that the industry needs enabling environment by way of suitable laws and policies towards building of infrastructure in order to attract the right volumes of investment inflow.

The panel session was moderated by Patricia Simon-Hart, Managing Director and CEO Aftrac, who also doubles as the Secretary of Petroleum Technology Association of Nigeria, PETAN. On improving critical infrastructure for the nation’s oil and gas sectors in order to boost investment, they noted that government needs to

have programmes which would encourage private investors to come into agreement with it. They emphasized the need for a dedicated oil and gas free trade zone which would enable the industry to acquire and operate equipment at cheaper rates due to economy of scale and shared facilities by various Original Equipment Manufacturers (OEMs) and local companies.

Noting that present attempt to acquire land at the nation’s free trade zones was a very expensive venture, compared to other investment destinations, they advised government to create the needed laws to encourage investments in such facilities. They also added that, ideally government had no business running businesses like industrial parks in Nigeria. It should be given up to private concerns via publicprivate partnerships (PPP).

Mr Ranti Omole, PETAN’s Publicity Secretary, while speaking on how operators in the country can take advantage of the African

Continental Free Trade Agreement (AfCFTA), advised that the country leverages existing frameworks like the AfCFTA, other AU Charters, as well as bilateral frameworks to promote export and free movement of developed capacities. He said, “these tools, if enabled by the right local environment and foreign policies, make operations across the continent seamless and provides ground for companies with developed capacities to integrate into other regions without the needed technical know-hows.

Hon. Idagbo said that the General Electric model deployed in Cross River state be deployed by other private investors who need the required skill-set to function in their built facilities. It would be recalled that GE created an avenue to develop local capacities by investing in technical training facilities and adopting the appropriate curriculum to train potential workers so they would be relevant to the operations.