The President of Garden City Premier Business School, Prof. Silva Opuala-Charles, has said that the six South-South states, through the BRACED Commission, should move to acquire 40 per cent assets of international oil companies exiting the country.
Opuala-Charles, speaking on Atlantic Television Network, in Port Harcourt, said acquiring such investment would generate more revenue for the states outside the federal allocation and 13 per cent derivation which has been their major sources of income.
According to him, the states can adopt the template of the Nigerian Liquefied Natural Gas (NLNG) by getting into a joint venture partnership with other private companies, owning majority shares.
He said, “My major concern for the BRACED states is that when you look at the performance of the six states, outside FAAC and 13 per cent derivation, you will see that they have not done very well. Apart from Rivers, the fiscal performance of the rest states are not so good.
“You re selling shell to the Renaissance group with about five companies paying the 2.4 billion dollars to take over the onshore assets. Oando is already taking over Eni assets, Mobil is going to sell to Seplat. So what we expect is that there must be a conscious effort of these states in the Niger Delta to adopt the NLNG templates where they will have 40 per cent of the assets because it’s very important. They need to ensure they are part of the investment.”
Opuala-Charles who also advised the South-South governors to put the BRACED Commission into good use, said the states can as well establish an energy company which will run its exploration and production assets, stating that the whole idea is to have an independent sustainability strategy.
“Now we have the PIA and under the PIA, there is host community development fund. With all this provisions made, I expect that if the states do not want to go into bankruptcy in the next few years to come, the valid thing to do at this point is for this states to use the BRACED Commission. Maybe we need to have a BRACED E&P or BRACED Energies Limited. When BRACED Commission started, the idea was that they would have a BRACED bank and all, but we are not seeing that.
“But the important thing is that they need to wake up and strive to have a stake in the assets that are being sold.”
Speaking on the exit of international oil companies from the country, Opuala-Charles said the companies have lost a lot of money in Nigeria due to foreign exchange instability sabotage and oil theft, adding that their exit wouldn’t be good for the South-South zone.
