Senate Kicks, Says Oil Firms Turning Nigeria to Extractive Zone

Senate Kicks, Says Oil Firms Turning Nigeria to Extractive Zone

Sunday Aborisade in Abuja

The Senate Committee on Local Content yesterday described as unacceptable the extractive operational model  being carried out in Nigeria by Chevron , Exxon and other oil companies without producing manufacturing content as being done in other countries .

The committee stated this during its interactive session with management of the Nigerian Content Development and Monitoring Board ( NCDMB).

The panel specifically lamented that while Chevron apart from the crude oil exploration in Saudi Arabia , also manufactures Polypropylene, one of the waste products from gas to produce Syringe which fetches Saudi Arabia $6 billion  annually .

It added that Exxon oil does same in United States of America (USA) , by making the country , the third largest producer of Polypropylene.

The Committee chaired by Senator Natasha  Akpoti-Uduaghan, wondered why the same international oil companies exploring crude oil in Nigeria , don’t  go the extras mile of using waste products from crude oil for manufacturing of needed products in the country.

The  crisis in the operational model of the international oil companies according to the committee, led to the collapse of Jubilee Syringe Plant in Bayelsa due to lack of the needed raw material.

The NCDMB told the committee to invite the oil companies for explanations on their extractive mode of operation without manufacturing content.

The Executive Secretary of NCDMB,   Felix Ogbe, said  it does not have the power to make the international oil companies diversify their mode of operations.

The committee said it will summon the oil firms to give explanations on why they are turning Nigeria to extractive zone and not manufacturing one , as being done in other climes .

“We cannot just allow the oil companies to turn Nigeria to just an extractive zone as far as exploration of crude oil is concerned but a manufacturing one as well with attendant economic value .

“This committee shall therefore summon the affected oil companies to appear before it on how what are available in Saudi Arabia , USA etc , can be replicated in Nigeria,” she said .

The  committee was however impressed with disclosure  made by the executive secretary of NCDMB,  Ogbe on $50 million  grant for research and $20 million   for women in oil and gas.

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