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Oil industry should adopt good corporate gov.

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By Mercy Kelani

Nigeria suffered a loss of $380 billion in investment and 2 million jobs.

Recently, the Nigerian Content Development and Monitoring Board (NCDMB) affirmed that majority of the local oil and gas businesses in the country are encountered with failure because they have refused to abide by the rules of good corporate governance. According to an earlier statement by the board, Nigeria suffered a loss of $380 billion in investment and 2 million jobs, as a result of investors who backed down due to economic or political unrest, and currency depreciation.

It was reported that some of the investors also fled due to the implementation of capital control. NCDMB asserted that it is mandatory for indigenous oil and gas companies to pay adherence to corporate governance guidelines to enable growth and drive sustainability. The executive secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Kesiye Wabote, was at a ceremony to celebrate the Niger Delta Exploration and Production’s (NDEP) rebranding into Aradel Holdings.

Aradel Holdings sticks to adherence to guidelines.

At the ceremony, the executive secretary stated that if local oil and gas companies looks forward to expanding and becoming sustainable, they have to comply with corporate governance rules in the operation of their businesses. Speaking at the commemoration of the rebranding, Wabote applauded the management of Aradel holdings for its strict adherence to corporate governance guidelines and standards. He emphasised that the reason for the success of Aradel Holdings is because of its refusal to engage in round-tripping.

He further noted that the establishment of the spirit of corporate government is one of the emulative acts enforced by the Chairman of Aradel Holdings, Chief Ladi Jadesimi; the former Managing Director, Dr. Layi Fatona; and the company’s group. The success of the business run by Aradel Holdings, he said, is possible because its leaders or proprietors were not independent contractors and did not engage in the hiring of other contractors; they also did not get involved in round-tripping.

Local producers are urged to follow the steps of Aradel Holdings.

In his statement, he said that they are one of the indigenous companies that NNPC Limited has a proud association with. He added that NCDMB is likewise proud of the company’s success and will not repent in its support of them. This is the reason why local producers are urged to follow the steps of Aradel Holdings by taking corporate governance with seriousness. Business owners were also advised to stay away from the daily operations of these organisations.

Furthermore, Wabote stated that more than 30 percent of Nigerians are without employment, cautioning that it would be a huge mistake for the oil sector to underrated local manufacturing and production. Closing his speech, he urged Aradel Holdings to ensure its active participation in acquisition of properties that are being sold by some internationally engaged oil firms. It has also been discovered that a significant oil and gas discovery was made by TotalEnergies in the Ntokon offshore if its OML 102. The discovery has about 38 million net and 15 million net oil and gas pay, respectively.

Corporate governance arguments have transitioned towards sustainability.

The need for maintenance of regulatory compliance by the oil and gas industry in Nigeria is highly essential as they are accountable for the highest release of gas emissions into the environment. The exploration and production activities of oil by international and indigenous companies in Nigeria are under the guide of a few regulations. Corporate governance arguments have transitioned towards sustainability — Environmental performance, Economic performance, and Social equity. The regulations serve as a structure that monitors the performances of firms.

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3 months ago

Oil industry should adopt good corporate gov.Nigeria suffered a loss of $380 billion in investment and 2 million jobs.Express your point of view.

3 months ago

I agree that the oil industry should prioritize good corporate governance. Nigeria’s loss of $380 billion in investment and 2 million jobs highlights the importance of responsible practices within the industry.
Good corporate governance ensures transparency, accountability, and ethical behavior in the oil sector. It helps to build trust among stakeholders, attract investments, and create a stable business environment. By implementing strong governance frameworks, companies can effectively manage risks, prevent corruption, and promote sustainable development.
In the context of Nigeria, improving corporate governance in the oil industry can have significant positive impacts. It can attract foreign direct investment, stimulate economic growth, and create job opportunities for the local population. Additionally, it can contribute to the diversification of the economy, reducing dependence on oil and promoting long-term sustainability.
To achieve good corporate governance, it is essential for oil companies to establish independent boards, adopt clear and comprehensive policies, and ensure proper oversight and accountability. This includes implementing robust anti-corruption measures, conducting regular audits, and engaging with local communities and stakeholders.
Furthermore, collaboration between the government, industry players, and civil society organizations is crucial in promoting and enforcing good corporate governance practices. Governments should enact and enforce regulations that promote transparency, accountability, and responsible behavior in the oil sector. Industry associations and civil society organizations can play a role in monitoring and advocating for improved governance standards.
By embracing good corporate governance, the oil industry in Nigeria can regain investor confidence, attract sustainable investments, and create a positive impact on the economy and society as a whole. It is essential for the industry to prioritize long-term sustainability, environmental stewardship, and social responsibility in order to thrive in the changing global landscape.
Overall, adopting good corporate governance practices in the oil industry is not only beneficial for Nigeria but also for the industry’s reputation, investor confidence, and the well-being of local communities. It is a critical step towards ensuring a sustainable and responsible future for the oil sector. 🌍💼🛢️

3 months ago

The oil industries should make sure they have effective corporate structure it’s important to make sure that the government regulates the oil firms. Financial responsibility is the reason behind this.

3 months ago

Nigeria lost $380 billion in investments and 2 million jobs, underscoring the importance of moral business conduct. In the oil sector, excellent corporate governance ensures accountability and moral behavior.