After much
deliberation with Ahmad, I summoned the courage to focus on the upstream arm of
the oil and gas sector believing that the Local Content Law aimed at localizing
management and control of the oil and gas industry will be a plus for
indigenous players. The establishment of the Nigerian Content Monitoring Board (NCMB) to serve as enforcer and
regulator by coordinating, monitoring and execution of the local content law
further boosted my confidence.
Based on the
foregoing, with my parents’ consent, I decided to mortgage my family’s property
to secure a loan from a commercial bank believing in the effectiveness of
enacted acts and laws regulating the oil and gas industry aimed at giving
Nigerian independent operators and Nigerian service companies’ first
consideration in the award of oil and gas-related contracts and “exclusive
consideration” for contracts and services respectively.
I went ahead
to borrow a huge sum of money at exorbitant interest rates and ridiculously
short tenors to invest in the acquisition of vessels to provide support
services to offshore drilling operations as a way of creating jobs and wealth
for the teeming youths in the country.
Upon
securing the fund, I bought my first ship and employed 50 people. A few years
later, I acquired my second vessel and employed additional 30 workers to drive
operations and management of the fleet.
It was
challenging but with perseverance, I was able to make profit in the early
years, which I ploughed back into the business. With a passion to grow, I
increased my staff strength to over 300 people mainly Nigerians with about 100
vendors servicing my company. The ability to put food on the table of many kept
me going, as I was motivated to drive the business further.
Despite
being heavily indebted to the bank, I sustained the servicing of my bank loan
in order not to default and to change the negative reputation of Nigerian
business people who many see as reckless.
While trying
to consolidate my investment came the flood of briefcase companies who lack the
technical and financial capacities to render quality services but rely on
doling out money to officials of concerned authorities in government (i.e. NNPC)
and international oil companies (IOCs) to secure long-term contracts at the
expense of credible corporate citizens.
These cheap
companies are professional bribe payers and are always able to secure long-term
contracts even though they don’t have assets but end up engaging the services
of third parties (who are mainly foreign entities) to the detriment of capable
wholly owned Nigerian companies who are ceaselessly denied contracts for
reasons best known to government and officials of IOCs).
This unfair
treatment being meted out to genuine Nigerian investors is painful and not to
the advantage of the country as a cabal has been formed to jeopardise due
process in the award of contracts by NAPIMS and IOCs. All these foreign
companies benefitting from the lapses in the industry end up transferring their
earnings to their home countries without looking back.
This is why
in Nigeria, vessel owners cannot compete with brokers, a resultant effect of
the unethical conduct of staff members of government entities and IOCs involved
in the procurement process. It is then that I understood how a middle-level
employee of concerned authorities could afford a two million dollar house in
Lagos, Abuja, London and the United States. I still have not made that kind of
money.
Now, I am
getting frustrated and have disengaged over 75 staff as I have consistently
tried to find work for my ships to no avail. I will not pay bribe to
anyone because of my conviction in a competitive process that will put into
consideration technical and financial capacities of entities bidding for
contracts in the industry.
It is
important to note that despite all these challenges, as a company, we still pay
taxes and levies when due. This patriotic act is being threatened by the
inability of local players to win oil and gas contracts. Government should
remember that indigenous companies are not afraid of healthy competition (or
requesting for favours) but are only asking for a level playing ground in the
bidding process and award of contracts. If these anomalies in the industry are
not corrected, they will only get worse. (Guardian)
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