“We are seeing a wave of divestment by oil majors operating in Nigeria”, Mallam Mele Kyari, GMD of NNPC at 2021 NAICE.
As the world makes big oil the new tobacco which must be avoided by all means, Nigeria’s moment of truth is here. Cholera has returned at scale, insecurity has scaled, even IBB baptized himself a saint by looking at the level of corruption these days, doctors are still striking, teachers are not left out, etc you will ask: what will happen when even the oil money is not in the purse?
If I have to speak with President Buhari this morning, I will tell him one thing: you are the petroleum minister, move your junior minister and make him the Minister of Energy Transition & New Economy, with a clear mandate to develop protocols on new systems to substitute whatever Nigeria will lose from petroleum. The goal is to have structures which will help Nigeria enter the new energy world confidently, and I do think despite whatever the ministries of ICT, Science, tech and innovation, etc may be doing, it is only the petroleum ministry that will send the loudest alarms.
The oil majors are not in control of this redesign: the investors are. As major funds dump them over exposure to the “new tobacco”, they want to wean themselves off hydrocarbons to remain viable in the markets.
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The World Bank has joined the march to greenhood, phasing out key upstream investments. The sovereign wealth fund of Norway, the largest equity investing fund in the world, controlling nearly 1.5% of the total global equity war chest, is cutting exposures to (fossil-based) energy companies. Shell is leaving Nigeria. Today, Toyota has learnt that selling more cars is not what matters, it is the type of car (EV or gasoline) that investors care about.
People, they are tobacco-lizing big oil, and in the near future the pension funds will join the party, and some university endowments will fire fatal bullets. Big oil is the new tobacco and the world is running away from it. Nigeria must open its playbooks.
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Comment #1: Prof Ndubuisi Ekekwe, honesty and accountability need to be built into Nigeria’s business culture. The NNPC GMD is only partially right in the attributed quote. He used a present continuous verb tense (we are seeing), in place of a compound continuous past perfect tense (we had been seeing).
The divestment trend among oil majors had been in progress for almost 8-10 years. Oil giants are being compelled by lawsuits, shareholders, and boardrooms to pursue new pathways in energy production, especially ones with a lower carbon future. Even national oil companies have begun diversifying. Saudi Arabia, one of the biggest oil-producing countries in the world has engaged in large commercial solar energy projects since 2011.
As you concluded, the change is imminent, and “Nigeria must open its playbook.” Unlike crude oil, gas production must ascend into the high priority realm, meaning gas flaring must come to an immediate ending.
When will the country begin to lay the foundations for the adoption of electric vehicles? Are the ministers of energy and transport even considering this?
Comment #2: “The goal is to have structures which will help Nigeria enter the new energy world confidently …….Its is only the petroleum ministry that will send the loudest alarms”. Exactly what Dubai did,and Venezuela refused to do.As of 2016, Venezuela has the largest oil reserves in the world.(Lol)
Good people,Nigeria has the best ideas-best brains. We have the best committees set up to look at the root causes and submit a term-paper. Then a second committee to serve as oversights to the first one.(Chuckling)
What we lack is sustained execution. Strong executions come from strong leaders,not drama or politics. It comes with dedication to the mission above all others. We have to start teaching our kids execution,not sentiments,ethnicity or politics. Just the results.Everything is simple thereafter.The common wealth should be our national destination.
Lagos is setting the pace. I predict in the next 20years,you will need some kind of intra visa,or economic visa status to live in Lagos, if the other states remain asleep .Just wait till Lagos gets its ultra modern state police.
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Now we know who is sane in this country. Nigeria has fools, Big ones.