Elumelu, Dangote seek more local actors in oil and gas

Aliko Dangote and Tony Elumelu in a private aircraft17 November 2014, Lagos – Two Nigeria entrepreneurs, Alhaji Aliko Dangote, President Dangote Group and Mr. Tony O. Elumelu, Chairman, Heirs Holdings, have lent their voices to the call for more indigenous participation in the Nigerian Oil and Gas Industry.

Both, who were Guest Speakers at 32nd Annual International Conference of the National Association of Petroleum Explorationists, NAPE, in Lagos, Nigeria said the involvement of indigenous institutions and players, would bode well for the economy and sued for a deliberate and systematic approach to the involvement of Nigerian entrepreneurs in the oil and gas industry.

”I was encouraged to come into the oil and gas industry by someone who believes deeply in Nigerian local capacity” said Mr. Elumelu in his opening remarks.

He explained that localization will impact positively on the sector just like it happened with banking. “Many years ago it was the general belief that only expatriates could own and run banks in Nigeria. Today, however, the top five banks are owned and run indigenously and we need for the same to happen in the oil and gas sector” Mr. Elumelu said.

The seasoned entrepreneur, whose pan-African investment company is investing in the financial services, oil and gas, healthcare power and hospitality sectors, revealed that he has ambitious plans in the Oil and Gas industry, disclosing that he is looking forward to the day when Nigeria will have the capacity to refine its petroleum on its own shores.

According to him, Tenoil Petroleum and Energy Services was set up as a platform to manage and operate Heirs Holdings’ investments across the energy value chain, as well as the extractive minerals sector. “Gas remains a hindrance to our economic development yet we have it in abundance. Efficient utilization of our gas resources is important if we want to create employment, fix the economy, send our children to school and generally make things work” Mr. Elumelu said.

Aliko Dangote, who is the President, Dangote Group, emphasized the importance of policy and regulation in the quest to indigenize the sector. Dangote also harped on capacity building and explained that the petro-chemical plant in the Lekki free trade zone in Lagos, which when completed by 2017 will employ thousands of Nigerians and turn the country into a net exporter of petroleum products.

He also disclosed that when he set up Dangote Cement in 2007, the cement industry had little local capacity but has since changed with indigenous players now having the dominant market share in the Nigerian cement industry.
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