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.