22 October 2016, Kampala – Nigeria first discovered oil in 1956, as production commenced Nigeria became the poster child for the woes of a resource rich economy. Academics talk about the resource curse or a paradox of Plenty and research shows that oil-rich countries in the developing world grow more slowly than their peers do. According to Nicholas Shaxson, in his book ‘Poisoned Wells’, as the oil cash tumbles in, agriculture silently suffers and the cost of living as well as the poverty levels often rise. When we visited the country was experiencing resurgence in violence and sabotage in the Niger Delta.
Despite all the above challenges Nigeria is experiencing a renaissance of sorts in the petroleum industry. At the heart of this turnaround is the ‘Nigerian Oil and Gas Industry Content Development Act (NOGICD) 2010. The NOGICD Act sought to reverse a trend where the bulk of the Nigerian annual oil and gas spend, estimated at $ 20bn per annum in material/equipment, fabrication and engineering design were supplied by foreign sources.
- The Monitor