The Federal Government (FG) has provided insights into the reasons behind the mass exodus of big multinational companies from Nigeria, particularly in the oil and gas sector.
Heineken Lokpobiri, the Minister of State for Petroleum Resources, revealed that a key factor driving major corporations out of Nigeria is the issue of excessive middleman involvement, which he referred to as "middlemanism."
Speaking at the opening of the Petroleum Technology Association of Nigeria’s (PETAN) Sub-Saharan Africa International Petroleum Conference, Lokpobiri explained that an influx of intermediaries in the oil industry has significantly contributed to its decline, leading to the exit of several multinational oil service giants from the country.
The minister specifically mentioned that major corporations, including Schlumberger, Halliburton, McDermott, and others, had pulled out of Nigeria due to unfavorable market conditions exacerbated by the increasing dominance of middlemen.
“We have made mistakes. And I’m saying this specifically so that all African countries here today will not make the mistake that Nigeria made. When I became minister, one of the issues I was confronted with had to do with the multinational service companies all exiting Nigeria. They’ve all gone, except, maybe this Italian company, Saipem. That was the only one that was around. So we had a situation where there was a monopoly,” Lokpobiri stated.
He further emphasized that this mass departure has left a vacuum in Nigeria's oil and gas sector, which was previously supported by these international firms. Many professionals within the sector had built their careers working with these multinational companies, benefiting from their expertise and capacity-building programs.
“The other big boys—the Schlumberger, Halliburton, the McDermotts—all of them have gone. All of you here in PETAN have your good days in these companies. That was where you started from. That was where you actually developed your capacity,” Lokpobiri noted.
The minister’s comments have sparked discussions about the need for urgent reforms in Nigeria’s oil and gas industry to prevent further decline and restore investor confidence.