National Telescope national telescope newspaper
Chibuzor Alli
The Nigerian Senate has called out international oil companies for not investing in the petrochemical industry.
The Chairperson of the Senate Committee on Local Content, Natasha Akpoti-Uduaghan, has announced that the committee will invite these companies to discuss the need for investment in petrochemicals.
Petrochemicals refers to a variety of products made from petroleum, including plastics, fabrics, fertilisers, paints, and medicines.
The global petrochemicals market size was valued at $619bn in 2023 and is projected to grow at a compound annual growth rate of 7.3% from 2024 to 2030, according to a report by Grand View Research.
In a statement on Friday by the Nigerian Content Development and Monitoring Board , and the meeting held in Abuja with Akpoti-Uduaghan,
“The committee chair criticised the international oil companies in Nigeria for not investing in the petrochemical sub-sector and other associated manufacturing activities, whereas IOCs in other oil-producing jurisdictions make such investments and contribute significantly to those economies.
“She announced that the committee would invite the IOCs and other relevant agencies of government, with a view to compel the companies to create tangible value in the Nigerian economy beyond the extraction and sale of crude oil”
Akpoti in his speech added that citizens in the country needs to open up to what they want.
he said, “We need to get them round the table and tell them what we want as a country as against watching them export crude oil only.”
Meanwhile, the Executive Secretary of NCDMB, Felix Ogbe, mentioned that many oil conglomerates have downstream companies that invest in the petrochemical and related sectors. He noted that while many operating companies in Nigeria do not have such subsidiaries, the board is willing to support indigenous firms interested in these ventures.
He said, “The board lacked the mandate to compel the IOCs to change their business model in Nigeria, but was collaborating with some oil companies to develop the Nigerian Oil and Gas Parks Scheme which is designed to manufacture oil and gas equipment and components as well as other manufacturing and research and technology programmes”
