CLARA NWACHUKWU

… Only two major projects worth over $20bn
Managing Director/Chief Executive, International Energy Services Limited, IESL, Dr. Diran Fawibe, has argued that high level corruption still constitute about 10 percent of production costs, which is compounded by the dearth of infrastructure, particularly power shortages.

According to him, Nigerians do not feel the President is committed to the fight against corruption because in spite of all that are being said, corruption is on the increase.

“We see an inverse relation because in spite of the ‘fight’ corruption is still on the increase, which implies that corruption is fighting back. But if we are very proactive about the fight, there will be a reduction, which means that we haven’t yet proffered a solution to fighting corruption effectively.

“Note that the corruption we are talking about here is not the one at the lower levels, but corruption at the highest level among people in government and positions of leadership. This is why the incidence is not reducing.”

Fawibe further argued that the insecurity in the system is a big disincentive to foreign direct investment, FDI, saying, “At the just-concluded OTC in Houston Texas, all the foreigners who spoke, cited insecurity as a limiting factor to investment.

“The shortage of power is still a very great impediment to development, and Nigeria will not witness much jobs creation due to lack of power. The cost of direct generation of electricity by homes and businesses is very huge.

“So if power and corruption can be tackled effectively operating costs will be reduced significantly. Mind you we have identified these problems over and over again, but it is how they are being tackled that will indicate whether we are making progress or not.”

Oil and gas sector
Specifically, while he agreed that there may be some growth in some sectors of the economy, but with regard to the oil and gas sector, he said not much had changed basically because of the uncertainties over the non-passage of the Petroleum Industry Bill, PIB.

The big difference he noted in the sector are two major projects worth over $20billion from France’s oil giant’s Egina project constituting about $18billion, and America’s ExxonMobil’s Erha North project. “So this is a pass mark for the government in getting two of the international oil companies, IOCs to start two major oil projects in the country worth over $20 billion.

“Also, I know that some others are equally considering some investments, but is the PIB is passed early enough will put their anxieties to rest.”

He noted that while the Total and ExxonMobil’s projects are a huge spend in the industry, there may not be much job creation because the industry is more technology-driven than people- driven. As such, he added that this is where the Nigerian Content Development Management Board, NCDMB, comes to the rescues in ensuring that more jobs are domiciled in-country from the $20billion, in order for more Nigerians to get some of the industry jobs.