DR. WISDOM ENANG CALLS FOR A SIMPLIFIED, EFFICIENT PETROLEUM SECTOR DIVESTMENT PROCESS

SAMPSON ENYONGEKERE, UYO

A shrewd and globally renowned oil and gas consultant, Engr. (Dr.) Wisdom Patrick Enang opines that Nigeria’s oil sector stands at a critical juncture, as the divestment of International Oil Companies (IOCs) from onshore and shallow water assets in the Niger Delta, which should in theory mark a pivotal moment for the country’s energy sector, has been marred by less promising realities.

Dr. Enang dropped the hint on Friday, November 8 in Uyo, the Akwa Ibom State capital, while speaking with newsmen on the national economic state of affairs.

In his opening remarks, the astute scholar noted that the divestment intentions of major players like Shell and ExxonMobil have been marred by an opaque and protracted regulatory process that threatens to derail the potential benefits of these transactions.

The Adjunct Professor of the North Dakota University, USA, explained that for years, Nigeria’s upstream regulatory framework has been hampered by inefficiencies and a tendency towards bureaucratic delays.

Dr. Wisdom Enang stressed that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), while saddled with ensuring compliance and due diligence, has been slow to approving divestments.

He maintained that such delays send a troubling signal to global investors about the ease of doing business in Nigeria, particularly in an industry where time-sensitive transactions are critical to maintaining operational continuity.

Explaining further, Dr. Enang emphasized that President Bola Tinubu’s reference to the ExxonMobil divestment in his Independence Day speech only underscored the severity of the issue.

“The fundamental problem here is that what should be a straightforward transfer of assets has been unnecessarily complicated by regulatory inertia which comes at a cost,” Dr. Enang bemoaned.

“While the divestments in view represents an opportunity for indigenous firms to step in and revitalize the sector, without swift regulatory approvals, these firms cannot begin the work necessary to boost production and generate revenue for the nation.”

“Such delays also deter future foreign investments, a critical lifeline for a nation struggling with mounting economic challenges.”

In addition, the economic egg-head emphasized that Nigeria’s oil sector has long been in decline, hampered primarily by theft, ageing reservoirs, lack of exploration activities, lack of investments, and ageing infrastructure.

Elucidating further, the Fellow of both the Nigerian Society of Engineers (FNSE) and the Nigerian Institution of Safety Engineers (FNISafetyE) noted that the shift towards indigenous ownership, while potentially empowering local companies, raises questions about “the capacity to perform”.

“Are these firms equipped to manage complex oil operations, and do they possess the financial and technical wherewithal to drive growth in the sector? The answer is not yet clear “, he queried.

While enunciating some of the limiting factors bedeviling the Nigerian petroleum sector, the indomitable go-getter expressed concerns over portfolio companies, which are more of “rent seeking middlemen”, rather than capacity builders.

In the same vein, the renowned public affairs analyst lauded the presidential directive on local content compliance requirements, which mandates that the NCDMB (Nigerian Content Development Monitoring Board) does not approve any Nigerian Content Plan (NCP) that contains intermediary contractor entities without the capacity to perform the required services, describing the directive as the right move in the right direction.

Furthermore, Dr. Enang noted that Nigeria’s divestment process is yet to address the environmental and social legacies of the IOCs’ decades-long presence in the Niger Delta, a region still reeling from pollution, underdevelopment, and unrest around the creek areas.

While proffering solutions to facilitate a more effectual divestment process, the Ethical and Attitudinal Reorientation Czar suggested that the federal government’s priority should be focused on streamlining the divestment approval process, and ensuring that it is transparent, predictable and efficient.

The chairman of the succor-giving and BBC-praised “Sarah Enang Humanitarian Foundation” also opined that Nigeria cannot afford to prolong these transactions or let regulatory hurdles stifle the potential benefits.

“Facilitating an effectual divestment process requires a more dynamic approach which leverages technology to expedite approvals, introduces clearer guidelines for compliance, and fosters stronger collaboration between the government, industry and local communities.”

Dr. Enang further stated that the divestment process must be accompanied by a comprehensive plan to address the Niger Delta’s socio-environmental challenges, explaining that indigenous firms must be held to higher standards of corporate responsibility and transparency about their commitments to sustainable development in the region.

“Failure to do so will merely replicate the mistakes of the past, leaving the Niger Delta communities with little to show for this latest wave of transactions. Undoubtedly, Nigeria’s oil divestments offer a unique opportunity to reshape the future of the country’s energy sector through the concept of energy domestication.”

The widely respected policy strategist also informed that the government’s ability to convert the divestment opportunities in view, hinges on its commitment to reform and transparency, stressing that by streamlining the regulatory approval process, fostering a conducive business environment, and promoting accountability, Nigeria can attract new investments, revitalize its oil industry, and unlock the immense potential of its energy resources.

“The stakes are high. The success or failure of these divestments will not only impact the nation’s economy, but will also determine the fate of millions of Nigerians who rely on the oil industry for their livelihood.”

In his final analysis, Dr. Enang submitted that it was imperative that the government prioritize the needs of its citizens and the long-term sustainability of the Nigerian energy sector, even as he urged the nation’s economic managers to take decisive actions that will transform Nigeria’s oil industry into a driver of economic growth and social development.