Ex-Minister, Kachikwu Advocates Raise of NCI Fund to US$1bn, Timeline for Developing Oil Blocks
The former Minister of State for Petroleum Resources, Prof. Emmanuel Ibe Kachikwu has canvassed that the $450m Nigerian Content Intervention Fund (NCI Fund) be increased to US$1bn, to cater for the funding of mega of oil and gas projects, setting up of pipe mills and manufacturing of other critical equipment needed in the oil and gas sector.
He also recommended that oil and gas producing companies should provide timelines for developing oil and gas blocks, same condition for firms that win industry contracts based on commitments of investments.
He made these recommendations and dwelt on similar issues on Monday at the Business Mentorship Lecture Series organised virtually by the Nigerian Content Development and Monitoring Board (NCDMB). The webinar drew nearly 500 participants via Zoom and the Board’s YouTube page.
Kachikwu who served as the Chairman of NCDMB’s Governing Council from September 2016 to May 2019, stated that a larger NCI Fund will provide seed capital for developing blocks, accessing technology, skill sets and equipment. The fund should include contributions from operators, and other investors in the sector and not just government resources, he canvassed.
He regretted that many awardees of oil blocks in Nigeria treat them like certificates of occupancy for land, causing huge losses to the nation. He advised Government to cancel oil blocks that are not developed after a prolonged period. He said: “We need to find a way to force performance in the industry. Some companies get contracts to import pipelines with proviso to invest locally. We need to begin to produce those equipment. You have to show the joint venture that you are setting up to produce pipes, where is the foreign partner with the funds and technology? You need to give a timeline.”
Commenting on the global investments space and how Nigeria can attract funding to the energy sector, the former minister argued that “there is lot of money waiting to be tapped, however it is only going to countries where there is a perception of regularity.” He opined that Nigeria’s image needs to improve. Government needs to create the right investment climate to attract investment. There is enough investment money out there if you have a holding of hands. They need to portray Nigeria as the place you can put money and get good returns.”
He also argued that Government should consider co-investing with private companies if there are good prospect of returns.
Kachikwu lauded the oil and gas sector’s transformation, with indigenous firms like Seplat, Aiteo, Oando Energy Resources, and Heirs Oil and Gas and others acquiring assets from divesting international oil companies (IOCs). However, he cautioned that mere ownership transfers are insufficient without enhanced output, management, and revenue returns, as well as compliance with extant laws. “My greatest fear is that without principled accounting, supervision, and effective oversight, indigenous companies may profit while the federal government loses revenue,” he said, stressing the need to involve local communities to avoid past disconnects that fueled conflicts.
The former Minister commended the Executive Secretary of NCDMB, Engr. Felix Omatsola Ogbe for upholding the agency’s mission and recording significant strides since assuming office. He reflected on his pivotal role in shaping the NCDMB, emphasizing that advancing local content was a core pillar of his tenure as Minister and chairman of the NCDMB Board.
He remarked that local content is not just a slogan, but rather a tool for industrialisation, job creation, and knowledge transfer, urging consistency of policies.
“For too long, foreign companies dominated every segment of the sector, while our people remained bystanders,” Kachikwu stated, highlighting how policies under his leadership compelled international oil companies (IOCs) to prioritize Nigerian involvement, fostering the rise of indigenous operators and skilled professionals.
Providing nuggets to players in the sector, Kachikwu said: “My message to young professionals is clear. The oil industry may be facing disruption, but it is also full of opportunities. Careers in petroleum now demand more than technical skills. They require adaptability, creativity, and a deep sense of responsibility to both people and the environment.”
He further advised new entrants to understand that “the industry is not just about barrels and dollars; it’s about national survival, community welfare, and the environment,” he said, urging professionals to embrace adaptability amid disruptions.
He also counselled that “achieving your career goals is a marathon, not a sprint. Patience and endurance are essential. Self-Belief is Crucial. Confidence in yourself and your abilities will fuel your progress and help you overcome challenges.”
Giving further counsel, he noted that principles matter: Let your ethics and integrity be a guiding light. Build relevant skillsets. Equip yourself with the skills that make you competitive and adaptable in the job market.”
In his welcome address, NCDMB’s Director of Capacity Building, Engr. Abayomi Bamidele, representing the Executive Secretary, underscored the Business Mentorship Lecture Series’ role in fostering trends and mind-sets for excellence. He said the lecture series was organised in furtherance of the Board’s mandate in sections 67 and 70n of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010, to hold workshops and seminars to promote and advance Nigerian Content.
Making the closing remarks, General Manager, Corporate Communications, NCDMB, Dr. Obinna Ezeobi, praised Kachikwu for sharing deep insights which benefitted stakeholders across the public and private sector of the energy sector. He also thanked the guest lecturer for his contributions to the NCDMB, recalling his sign-off on the Waltersmith Refinery investment, which became a successful project and the launch of the US$200m NCI Fund, which has grown into US$450m, now managed by the Bank of Industry and Nexim Bank.
He added that NCDMB has fully embraced its roles of enabling businesses, in addition to the traditional mandate of regulating and promoting local content. He added that the Board is committed to supporting Nigerians and local oil and gas firms to grow sustainably in the sector, hence it organises the Business Mentorship Lecture Series, which he assured would continue as a key platform for engaging and educating stakeholders of the industry. He encouraged interested listeners to visit NCDMB’s YouTube channel to watch the recording of the webinar.
