Oil
Diezani Opens up: How we tackled oil industry cabals
LONDON, UK–Outgoing Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, in this interview with Arit Essanga, a freelance journalist with the African Free Press, in London, explains the intricacies and how she tackled the cabals in Nigeria’s oil industry.
Excerpts.
Thank you for granting me a few minutes of your time for this pressing discussion about the future of policy evolution in Nigeria. But I want to quickly talk about the fuel scarcity that has come just weeks before the hand-over to the new administration. The time of my appointment as Minister of Petroleum Resources 5 years ago was a time when the nation was in the throes of many years of continuous fuel scarcity and the abandonment of our fuel facilities. This was having such an adverse impact on the masses, especially in terms of livelihood and quality of life.
Nigeria’s immediate past petroleum Minister Mrs. Diezani Alison Madueke
This situation certainly affected me and my household. I was one of those who went out to queue at filling stations and what left an indelible mark on me was the plight of the many, many women who were queuing for this essential commodity for their families! We are looking at time when women where losing their lives as a result of adulterated products as kerosene stoves were exploding all over the country! So the problem was not just about getting access to the product but also purchasing the right quality products to ensure the safety of their households of my fellow women.
It was a time when cars were ‘knocking’, generators that cost hundreds of thousands of naira were also breaking down because of adulterated products. People around the country were losing many millions of Naira as a result of loss of business incomes and we are talking of taxi drivers, face-me-I-face-you traders in the market, the lorry drivers transporting food to the markets, the okada drivers – basically the engine room of the economy was affected. I am a mother and grandmother myself and I understand the pressure that women go through in order to put food on the table for their families. I am very sensitive to the struggles of the Nigerian woman. So, when granted the opportunity to serve the country as Petroleum Resources minister, I made this my first priority. Dealing with the fuel scarcity was a key issue that I resolved to address as soon as I stepped into office.
Nigeria is a country that relies on access to petroleum products for businesses to thrive, for families to survive and for communities to evolve. For me it was a fundamental issue. I Diezani Alison-Madueke immediately set to the task. Several inter-ministerial committees were formed to get to the root of the matter including liaising with marketers and the unions. A few things were identified such as the process of payment to marketers as well as the improvement of the distribution & monitoring mechanisms. The Ministry of Finance is charged with addressing the payment process while the Ministry of Petroleum Resources and its parastatals tackle production, distribution and monitoring aspects.
What did you do in terms of tackling the issue of access to products? Firstly sectorial reforms were put in place, and an attempt was made to establish a uniform pricing regime across the country, which still requires task forces to be put in place to oversee its success. Secondly, an aggressive strategy was completed to build as well as refurbish over 23 Nigerian National Petroleum Corporation (NNPC) depots across the country many of which, had lain fallow for several years. This is the result of the determined efforts of the Pipelines and Product Marketing Company (PPMC), a subsidiary of the NNPC. The aggressive establishment of the depots occurred from Aba to Benin, from Gusau to Suleja, in an attempt to ensure a more robust delivery of products, to not only those areas but also all contingent areas.
Thirdly many vandalized pipelines have been restored and expanded in addition, fuel products are now transported by rail where possible to ensure that the products get to the depots in good time to avert situations of shortage. Furthermore, NNPC now holds and maintains a 30-day stock of PMS, as part of the National Strategic Stock Reserve for products. The Ministry has also increased the flash point for DPK (kerosene) from 44 to 45 (curbing the incidences of kerosene cookers exploding) – I cannot remember the last time a kerosene cooker has exploded; implemented inspection of trucks at each NNPC Depot for cleanness (preventing contamination) and lab testing of truck samples for quality control.
DPR also introduced colour coding for all trucks loading any petroleum product, this means the trucks cannot be used for any other purpose apart from what it has been coded to load. Many Nigerians will attest to the fact that before now, the country has been “wet” with products with even filling stations in remote areas, able to dispense products. I also led the roll out of robust measures to identify and penalise those behind the activities of fuel adulteration as well as pipeline vandalism, in a joint effort between security agencies, the NNPC and the Department of Petroleum Resources (DPR). The first joint meeting between the key parastatals, the Service Chiefs and Inspector General of Police took place at the Oriental Hotel. It was the first meeting of its kind in the history of the sector.
If all these measures have been put in place why has there been this crippling fuel crisis?
The fuel scarcity that we see today I can only describe as the ‘fear of the unknown’ in these last few days before hand-over. It is also a backlog following the attempts by the government to stamp-out the subsidy fraud and clean the system in November 2011. Identifying and cutting out up to 92 marketers who had been round-tripping reduced the subsidy payments by about 50%. This also brought about a few delays in payment, as the investigations to identify erring marketers were robust and took time.
We are faced with a situation where the marketers want this administration to pay them all the money they are owed before the tenure runs out on May 29. This is a difficult situation more peculiarly because this administration did not incur all the debt, which actually goes back 40 years. It is a rolling obligation. There has never been a time, when the debt obligations was reduced to zero it is cyclical. What the marketers are asking for is not just the outstanding amount to be paid but also for the exchange rate differential that they have incurred. This is in the light of the many conversations that are on going about deregulating the subsidy payments. The transition period is allowing the marketers to try to forestall any losses as a result of a change in regime, while this makes good business sense it is the polity that suffer. The Ministry of Finance and the presidency are giving this situation the priority it deserves.
Let’s talk about some of the allegations that you face with regards to ensuring stability of supply across the country, more specifically about the debate on the subsidy. The memory of Occupy Nigeria is still distant but we see this same situation by marketers holding the country to ransom?
Let me start by making the distinction that the decision as to whether subsidy payments are made or not is entirely economic and outside my purview as Ministry of Petroleum Resources. What we are responsible for is the production, distribution and marketing aspects. What we also do is give a view as to the status in terms of these 3 areas and the decision becomes an economic one from the Presidency. In terms of my direct actions in November 2011, following the high incidence of subsidy claims, with a stroke of the pen, I removed 92 throughput marketers from the PPPRA scheme because we believed that within the group were the round trippers who were causing problems for the country in term of the burgeoning levels of subsidy payments. As a consequence of this action, the amount of subsidy payments dropped by over 50%.
A series of probes where kicked-off to investigate the transactions of these marketers and to begin to bring in a level of accountability and transparency into the system of subsidy payments. The lists of these marketers were also published in the local press and a series of probes ensued. The marketers had to justify their claims to the payments. This was the first ever-major cleanup of the subsidy programmes and yet again the ministry was vindicated and offending marketers are going through the legal implications of their actions.
The Petroleum Products Pricing Regulatory Agency (PPPRA) was also restructured and the processes in place for the determination of subsidy payments were comprehensively reviewed. But these actions led to major push back by many with accusations of corruption against the ministry and NNPC to get us to back down. I am sure I stepped on the toes of the greedy cabals that have dominated the sector for years, upset at the change in the system. The push back has come from many other sources beyond the marketers and the funny thing is these are the same people that shout corruption the loudest but yet are unable to accept the reforms that are being put in place to make the sector more accountable so we are almost caught between a rock and hard place in the sector. [The minister at this point puts her hands on her head and sighs] In fact this is where the bane of my problems as a woman in government began. I wonder why people seem to want to put a tag of corruption against my name when all I have ever tried to do is to open the sector up for more Nigerians and make it work better for the benefit of the country. If I were corrupt would we have achieved the extent of reform that has occurred in the sector to date? Ah my brother, I have worked tirelessly to curtail the excesses while ensuring that the country remains wet with products and the sector run more efficiently.
I have constantly ignored the viciousness and focused on my job. The most important point to make in terms of stability of supply is that today, marketers have a clear contract to deliver their products on specified dates. Marketers are put under strict terms to deliver products at dates specified if they miss the cutoff date for delivery then their cargo goes into demurrage which in itself acts as an incentive to ensure supplies. More recently, as part of the transition activity I have instructed that all of the swap operators across the board provide detailed and clear reports about their export and import activities so that a reconciliation can be conducted and published for all Nigerians to see.
These swap transactions involve extremely high volumes and huge cost obligations to banks. The contracts with these operators are very stringent indeed and delivery specifications clear. There are serious ramifications to the operators for non-delivery most especially by the banks for non-delivery this is dependent generally on the lines of credit arrangements. This is being done as part of my commitment to accountability and transparency to Nigerians. It will also put to bed the various claims in the press about different alleged practices by the operators that are being associated to me. The operators deal with the NNPC according to tight contractual agreements.
All the swap operators were well vetted and passed as credible Nigerian corporations capable of executing such major stringent contracts with no room for any offences to the system. So when you have strict contracts in place and bank obligations it is surprising that mischief-makers can say that I am in league with some of these operators in acts of corruption! It shows that they have no idea how the system works and I would ask that they educate themselves before they speak. If Aiteo, Talevaras or any other operator were cheating the NNPC it would be made public as the system has been reorganized to do this automatically. The publication of the reconciled transactions from the time the contracts were assigned to them will also be a testament to this commitment. Erring contractors will be made to face the legal implications of any wrongdoings that are uncovered.
Modupe ASUDO
The Nigerian Content Development and Monitoring Board has reiterated its commitment to advancing gender inclusion and sustainable capacity development in Nigeria’s oil and gas industry, spotlighting a $20m Women in Oil and Gas Intervention Fund.
The Board made this known at the 3rd edition of the Diversity Sector Working Group’s Women in Oil and Gas Conference and Mentorship Programme, held on March 3, 2026, at Eko Hotels and Suites, Lagos.
The conference, organised in collaboration with the Nigerian Content Consultative Forum, was themed ‘Breaking Barriers, Shaping the Future’, with a strong focus on building bridges and empowering women for a sustainable energy future.
Delivering his goodwill message, the Executive Secretary of NCDMB, Engr Felix Omatsola Ogbe, described women’s empowerment as a strategic lever for strengthening Nigeria’s energy ecosystem, particularly at a time the global industry was undergoing profound structural change.
He explained that the sector’s navigation of energy transition, rapid technological innovation and rising sustainability expectations increasingly requires broader perspectives, adaptive leadership and inclusive participation to remain competitive and resilient.
Represented by the General Manager Midstream PCAD, Ms. Lekoma Phimia, the Executive Secretary framed inclusion not as social advocacy but as sound economics, stressing that diversity consistently delivers measurable performance outcomes across industries.
“Inclusive organisations are more innovative, more resilient and more profitable. When women thrive, industries thrive. When women lead, economies grow. When women are empowered, communities prosper,” he stated.
To illustrate this point, the Executive Secretary referenced the leadership impact of Ms. Oritsemeyiwa Eyesan, Executive Chairman of the Nigerian Upstream Petroleum Regulatory Commission, describing her tenure as clear evidence of women’s capacity to drive sector-wide transformation at the highest levels.
According to him, such leadership exemplifies how competence and inclusion are helping to steer the industry through a period of accelerated change.
While acknowledging the progress recorded, Ogbe observed that systemic barriers had continued to limit the full participation of women across segments of the oil and gas value chain, stressing that addressing the constraints requires deliberate, structured and sustained interventions.
At the centre of NCDMB’s empowerment showcase, the Executive Secretary highlighted the Women in Oil and Gas Intervention Fund, a landmark $20m initiative established in partnership with the Nigerian Export-Import Bank to provide affordable financing exclusively to women-owned businesses operating within Nigeria’s oil and gas sector.
He explained that the fund offers single-digit interest rate loans with repayment tenors of up to three years, targeted at eligible companies with approved industry contracts. According to him, the initiative is designed to accelerate local capacity and enable women entrepreneurs to transition from peripheral participation to ownership and leadership across the oil and gas value chain.
Ogbe further disclosed that a complementary intervention, implemented in partnership with the Bank of Industry, extends structured business training and additional access to capital to women-owned enterprises. He noted that many beneficiaries have expanded from small service providers into competitive vendors now supporting major oil and gas operators nationwide, particularly in logistics and marine services, safety equipment supply and environmental management — segments where female entrepreneurs have historically faced limited access to financing.
Beyond financing, the Executive Secretary highlighted NCDMB-supported skills development programmes executed in collaboration with institutions such as the Petroleum Training Institute and accredited industrial training centres in Rivers and Bayelsa states. He cited the training of women in welding and fabrication, noting that many graduates are employed in fabrication yards and contribute directly to major oil and gas projects.
“These women are earning dignified livelihoods, breaking stereotypes and inspiring a new generation,” Ogbe said, emphasising that collaboration remains critical to scaling impact, citing partnerships with financial institutions, development partners, training institutions and industry stakeholders.
He commended the NCCF Diversity Sector Working Group for sustaining advocacy and dialogue on inclusion. “We must move beyond inclusion towards leadership — more women in technical leadership roles, executive positions and industry boards,” he added.
In her remarks, the Chairman of NCCF Diversity Sector Working Group, Dr Alero Onosode, described the conference as a celebration of progress, leadership and possibility, noting that NCDMB’s sponsorship reflects its strong institutional commitment to inclusion and shared prosperity. She observed that convening the conference in March — International Women’s Day month — was symbolic, coming at a time of renewed activity and reform across Nigeria’s oil and gas industry.
“Alongside this momentum, we are seeing the rise of women into visible and influential leadership roles — regulators, CEOs, directors, engineers and policymakers shaping strategy and transforming spaces that were once dominated by a single voice,” Onosode said.
She explained that the conference theme challenged stakeholders to move from representation to impact, urging deliberate collaboration across sectors, generations and perspectives.
“Building bridges means women and men working together, turning diversity into strength and collaboration into results,” she stated, calling on industry leaders to prioritise mentorship, sponsorship and intentional partnerships.
The conference concluded with a renewed call for inclusive capacity development, with NCDMB reaffirming its commitment to empowering women, strengthening Nigerian content and ensuring that Nigeria’s energy future is sustainable, inclusive and economically transformative.
Modupe ASUDO
The Nigerian Content Development and Monitoring Board (NCDMB) has said that its 10-year strategic roadmap was designed to strengthen Nigeria’s industrial base by retaining 70 per cent of oil and gas industry spending within the country by 2027, while creating employment opportunities for about 300,000 Nigerians across the oil and gas value chain and its linkage sectors.
This position was made known during a high-level panel session at the maiden West Africa Industrialisation, Manufacturing and Trade Summit and Exhibition, held in Lagos under the theme “Accelerating West Africa’s Sustainable Industrial Revolution for Economic Prosperity”.
The session focused on maximising human capital as a catalyst for competitive and resilient industries in the region.
Speaking on behalf of the Executive Secretary of the NCDMB, Engr. Felix Omatsola Ogbe, the General Manager, Human Capacity Development, Mr. Esueme Kikile, congratulated the organisers for convening the summit, noting that “the theme strongly aligns with the Board’s long-standing mandate in the oil and gas sector.”
He explained that NCDMB’s core responsibility is to build the capacity of Nigerians and Nigerian companies to participate actively in the oil and gas industry, stressing that industrialisation, manufacturing and trade were critical drivers of sustainable economic growth.
To achieve this, Kikile said the Board launched a 10-year strategic roadmap in 2017 aimed at developing in-country fabrication and integration capacity, while strengthening local manufacturing capabilities.
According to him, the oil and gas industry alone is capital-intensive and limited in direct employment, but its linkage sectors provide vast opportunities to absorb Nigeria’s growing youth population.
“Our plan is to ensure that at least 70 per cent of Nigerian oil and gas spend is domiciled in-country by 2027. That is why fabrication, manufacturing and industrialisation are so critical. Through this approach, we project employment opportunities for about 300,000 Nigerians, not just in oil and gas, but across its supporting industries,” he said.
Moderating the panel, the Head of Operations at Jobberman Nigeria, Ms Samantha Ifezulike, set the tone by raising concerns about whether West Africa has sufficient human capital to sustain rapid industrial scale-up, both at entry and senior levels. She challenged the panelists to examine barriers to talent deployment and the role of collaboration between industry and government.
In response, Kikile described West Africa’s population of over 450 million people, nearly 60 per cent of whom are young, “as a significant demographic advantage that remains largely untapped due to structural constraints.”
He identified policy fragmentation across borders as a major barrier, and noted that limited mobility of skills within the sub-region restricted optimal use of available talent.
He also pointed to the disconnect between academia and industry, observing that many education systems still prepared graduates for civil service roles rather than practical, industry-driven careers.
He called for deeper collaboration between universities and industry to align curricula with real-world needs, including technology-driven and hands-on training.
On technical and vocational education, Kikile stressed the need to revive and modernise training institutions to meet the demands of the Fourth Industrial Revolution, recalling how vocational pipelines once fed directly into industrial and oil and gas hubs.
He further advocated policies that enabled innovation and entrepreneurship, allowing students to translate viable ideas into businesses, supported by streamlined regulatory frameworks.
Highlighting the NCDMB’s role in talent development, Kikile said human capacity development was central to the Board’s mandate, especially in correcting decades of overreliance on expatriate labour in the oil and gas industry. He noted that the steady growth of indigenous companies over the years reflected the impact of Nigeria’s local content policy.
He said the NCDMB was implementing an Oil and Gas Field Readiness Programme designed to train 10,000 young Nigerians in critical skill areas identified through industry studies, addressing significant skill gaps in the sector. The programme combines classroom learning with compulsory six-month on-the-job training to ensure participants are truly industry-ready.
“We rolled out this programme recently and are already working with operating companies. The goal is not just certification, but field-ready talent. Properly trained Nigerians should be able to compete locally and globally as industry leaders,” he said.
Kikile concluded by emphasising three priorities: strengthening regional capacity and absorptive ability, ensuring industry actively co-creates curricula with government, and enforcing compliance with well-designed policies and regulations.
Wrapping up the session, Ifezulike underscored the need for stronger alliances, effective policy development and practical implementation, calling for broader stakeholder participation to translate discussions into measurable outcomes.
The industry leadership panel reinforced the growing recognition that unlocking West Africa’s human capital is essential to achieving sustainable industrialisation, trade expansion and long-term socio-economic transformation across the region.
Modupe ASUDO
A world-class Gravimetric Flow Metering Calibration Laboratory, the first in Africa, was on Tuesday commissioned at the operational base of Engineering Automation Technology Limited (EATL) at Eket, Akwa Ibom State, with all oil and gas industry regulatory agencies and leading operators in attendance.
The facility, which is engineered to accommodate diverse flow regimes and fluid properties, guarantees accurate and reliable measurement of product transmission through industry pipelines. It incorporates what industry experts describe as “temperature and pressure conditioning, traceable reference standards, and automated data capture,” and would solve problems of flow meter factorisation and recertification.
In a keynote address at the commissioning ceremony, the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Felix Omatsola Ogbe, described the facility as a strategic breakthrough in Nigeria’s oil and gas industry, noting that “For decades, critical calibration and metering services were largely executed outside our shores, resulting in capital flight, increased project timelines, and limited knowledge transfer.”
He said the Gravimetric Multifaceted Flow Metering Laboratory is firmly aligned with the objectives of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, 2010, on local asset ownership, capacity building, and value retention. Itsstrategic importance, he noted, extends to revenue assurance and regulatory compliance, cost optimisation for industry operators, technology transfer and skills development, and industrialisation of the Niger Delta.
According to Engr. Ogbe, accurate calibration ensures transparency in hydrocarbon accounting and thus strengthens confidence across operators and regulators. Operators, too, would benefit from in-country calibration and metering servicesin terms of reduced logistics costs and turnaround time, while Nigerian engineers, technicians, and metering specialists now have a world-class training ground.
The Executive Secretary said Engineering Automation Technology Limited is among carefully selected corporate entities under NCDMB’s Project 100 Companies Initiative – a strategic programme designed to nurture high-potential indigenous companies into globally competitive champions. The strategy of the Board, he explained, has evolved beyond monitoring to enabling, which involves provision of access to finance, capacity development, infrastructure, co-investments and research and innovation support.
Represented by the Acting Director, Monitoring and Evaluation, Mr. Silas Ajimijaye, the NCDMB boss acknowledged the leadership role of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in ensuring that regulatory frameworks continue to support technological advancement while maintaining global standards.
He charged EATL to maintain international quality standards, pursue accreditation and global certifications, invest continuously in research and human capital, and explore regional and continental markets. “Let this facility become a West African hub for flow calibration excellence,” he exhorted.
In her own address, the Commission Chief Executive (CCE) of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mrs. Oritsemeyiwa Eyesan, expressed profound joy at the completion and commissioning of the Calibration and Metering Laboratory, which she declared would be Nigeria’s “national standard.”
“Flow labs in the country’s oil industry will bring their Master Meters here for calibration,” she assured, noting that the NUPRC gave its “very best to support EATL” and would continue to do so.
Represented by the Commission’s Deputy Director, Development, Engr. Manuel Ibifuroko, the CCE said the NUPRC is a business enabler, adding, “We want to be very stringent, but we also have to enable business.” She pointed out that the Commission was determined “to co-create solutions and to ensure costs in the industry are reduced.”
In a welcome address, the Managing Director and Chief Executive Officer of Engineering Automation Technology Limited, Dr. Emmanuel Okon, thanked all the organisations – regulators, industry operators and others who facilitated the transition from “aspiration to operational capability.”
He said EATL was “a vision conceived in 2020 shortly after the inauguration of the second batch of NCDMB’s Project 100 by the then Executive Secretary, a support we are still enjoying from the current Executive Secretary of the NCDMB.”
He pointed out that “NUPRC, NCDMB and NUIMS [National Upstream Investment Management Services, an arm of the NNPCL] form the foundational pillars of this facility,” while inviting the regulatory agencies and all industry stakeholders to engage with the laboratory, “scrutinize its data, and adopt it as a shared benchmark.”
He also acknowledged the exceptional support and invaluable partnership of Renaissance Africa Energy Company Limited throughout the commissioning process, particularly “for providing the Meter Under Test, without which the milestone would not have been achieved.”
The Chief Upstream Investment Officer of the Nigerian National Petroleum Company Limited, represented by the Deputy Manager, Production Sharing Contracts (PSC), Engr. Paul Duke, commended Engineering Automation Technology Limited for its “vision, dedication and technical excellence demonstrated in conceptualizing and delivering a world-class system.”
He noted that with the facility now in place, Nigeria strengthens its capacity for accurate measurement, improved hydrocarbon accounting, and enhanced regulatory compliance, which he described as “critical pillars for transparency and value optimization across the upstream and midstream value chains.”
Engr. Duke expressed appreciation for the collaboration among stakeholders, notably, regulators, operators, service providers, and technical teams, whose collective efforts have brought the initiative to fruition. He said the facility “aligns fully with NNPC Ltd.’s mandate to drive accountability, efficiency, and sustainability in Nigeria’s hydrocarbon operations.”
In related comments, Project Director in the Group Chief Executive Officer’s Office, NNPCL, Mr. Adokiye Charles, said the gathering was not just to activate the facility. According to him, “We are gathered here today to commission accountability; we are gathered here today to commission integrity… and to commission trust.” He expressed great delight at the landmark development.
For his part, the immediate past Executive Commissioner, Development and Production, NUPRC, Engr. Amadasu Enorense, said the commissioning marked a defining milestone in Nigeria’s industrial journey. According to him, “To have the first Flow Metering Calibration Laboratory in Africa is indeed a major milestone.”
In a detailed explanation of the benefits the facility would bring to Nigeria, he pointed out that, “By establishing this in-country calibration laboratory, we are declaring that precision will no longer be outsourced; competence will no longer be imported, and value will no longer be exported unnecessarily.”
He revealed that hitherto, calibration services of such technical complexity required sending equipment – and capital – overseas, resulting in “foreign exchange outflows, project delays, and lost opportunities for our engineers and technicians to develop world-class expertise.” “Today,” he remarked, “We reverse that trend.”
He urged industry operators to support the facility, utilize it, and partner the company to strengthen it. To Nigeria’s young engineers, his message was, “This Laboratory represents opportunity; master the science, uphold integrity and innovate endlessly.” According to him, “The future of our industry will be defined not just by [oil and gas] reserves in the ground but also by knowledge.”
From a major partner in the project, Emerson Automation, were words of assurance of continued support and collaboration. According to the company’s Area Director, West Africa and Angola, Engr. Chukwuma Ossaiga, “If we create value we can impact the next generation.” He urged oil and gas industry players to patronise the facility.
From a representative of Renaissance Africa Energy Company Limited, Mr. Enobong Ekanem, was a firm assurance of full patronage of the facility. The NNPCL and other operators all affirmed their confidence in the facility and assured the Management of their preparedness to continue to do business with the company
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