Delivering a paper during the Nigerian Content Development and Monitoring Board (NCDMB) Business Mentorship Lecture Series held virtually on Monday, Former Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu traced the history of Nigeria’s oil industry, its high points, missed opportunities, and current crises. He said the country must now confront its structural weaknesses and external pressures with courage, pragmatism, and innovation if it hopes to sustain oil as a tool for national survival while navigating the transition to cleaner energy.
The former Petroleum Minister urged the country to undertake sweeping reforms backed by political will, discipline, and vision to rescue its oil and gas sector from decades-long decline and prepare it for the challenges of a fast-evolving global energy landscape.
According to Kachikwu since crude oil was discovered in Oloibiri, Bayelsa State, in 1956 and commercial production began in 1958, petroleum has defined Nigeria’s political economy. He noted that the oil boom of the 1970s transformed Nigeria into Africa’s largest oil producer and the sixth largest exporter globally, fueling massive infrastructural expansion, urbanization, and diplomatic influence.
However, the same period entrenched overdependence on hydrocarbons, weakened agriculture and manufacturing, and institutionalized rent-seeking governance. “It was a paradox,” Kachikwu said. “Vast revenues flowed into state coffers, yet poverty persisted, and national development remained inconsistent.”
He observed that the legacy of neglecting non-oil sectors has left Nigeria vulnerable, with current production levels stagnating at historic lows.
According to Kachikwu, the industry’s most recent downturn from 2015 onwards has been shaped by multiple factors: rampant oil theft, militant attacks on pipelines, underinvestment, ageing infrastructure, regulatory uncertainty, and the accelerating global shift toward renewable energy.
Between 2017 and 2023, Nigeria’s production fell from over 2.1 million barrels per day to below 1.4 million, he noted, while in 2022 the country failed to meet its OPEC quota for 12 consecutive months.
“These challenges are not new, but their convergence in the last decade has significantly altered the sector’s trajectory,” he stressed.
Despite the turbulence, Kachikwu pointed to notable shifts, including the rise of indigenous companies such as Seplat, Aiteo, Oando Energy Resources, and Heirs Oil and Gas, which have acquired assets divested by international oil companies.
He also highlighted the Petroleum Industry Act (PIA) of 2021 as a landmark reform designed to restructure governance, commercialize the Nigerian National Petroleum Corporation into NNPC Limited, and guarantee host communities a share of oil company expenses.
Still, he lamented that the PIA’s rollout has been inconsistent, plagued by overlapping mandates, weak regulatory capacity, and political interference. Fiscal instability, subsidy reversals, and unpredictable government policies have further discouraged investors.
Reflecting on his tenure, Kachikwu said advancing local content was central to his service. Under his watch, Nigerian participation in oil and gas contracts rose from less than 5 percent before 2010 to over 30 percent by 2020. He also helped establish the $200 million Nigerian Content Intervention Fund, trained more than 7,000 Nigerians in technical fields, and pushed for in-country fabrication of Floating Production Storage and Offloading (FPSO) modules.
“My belief was simple: local content was not a slogan. It was a tool for industrialisation, job creation, and knowledge transfer,” he said.
As minister, he championed fuel subsidy reforms in 2016, raising pump prices from ₦87 to ₦145 per litre to save Nigeria over ₦1 trillion annually, and launched the National Gas Policy in 2017, declaring gas Nigeria’s transition fuel. He also initiated the Gas Flare Commercialisation Programme and introduced monthly NNPC revenue disclosures to the Federation Account Allocation Committee (FAAC) for transparency.
Kachikwu identified six “headwinds” confronting the oil industry today: financing constraints, rising global competition, climate change pressures, growing domestic energy demand, OPEC-U.S. rivalry, and persistent insecurity.
He said Nigeria’s path to recovery must include bold fiscal reforms, consistent regulation, and infrastructure renewal. He also underscored the importance of embracing gas as a transitional fuel, leveraging new refineries like Dangote’s to end import dependence, and investing in renewable energy to future-proof the economy.
Beyond policy prescriptions, Kachikwu used the lecture to inspire young Nigerians considering careers in energy. Drawing from his own journey—from graduating top of his class in law at the University of Nigeria, Nsukka, to becoming Executive Vice Chairman of ExxonMobil Nigeria, GMD of NNPC, and later minister—he emphasized the values of excellence, adaptability, and integrity.
“Those entering the sector must understand that oil is not just about barrels and dollars,” he told participants. “It is about national survival, community welfare, and the environment we will leave for future generations.”
He urged aspiring professionals to combine technical expertise with creativity, responsibility, and global outlooks. Referencing figures such as Nelson Mandela, Elon Musk, Aliko Dangote, and Wole Soyinka, Kachikwu stressed the importance of perseverance, vision, and ethical principles.
He cautioned that Nigeria is in a race against time to maximize oil’s benefits before global demand declines significantly. He called on policymakers, investors, and the younger generation to “upend the sector” with courage, discipline, and a commitment to innovation.
The former Minister advised that to achieve career goals is a marathon, not a sprint adding that confidence, integrity and tenacity will make the difference.
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