05:01 GMT 8th November 2011
What is the background of the Sahara Group?
We started as an oil trading business in 1996 with a focus on Nigeria. Going back about 10 years, we saw a need to diversify and we got our first break in Ghana in 1999 with the supply of crude oil. Soon afterwards, we broke into Senegal and, after pulling out from there, Ivory Coast. We have also opened up offices in Angola. We went to these places at a time when countries were looking at local content, and this paid off for us.
Today we are operating far beyond Africa. We have offices in Geneva, Dubai and Singapore to cover the European, Asian and Middle Eastern markets respectively. Our business activities span the entire energy value chain and we see ourselves as a global brand.
Why did you pull out of Senegal?
Senegal was at that time a very difficult country to break into, perhaps because of the divide between anglophone and francophone countries. They were also very anti-Nigerian and anti-liberalisation. When our efforts there failed to yield results, we moved our offices from Senegal to Ivory Coast. Although this is also a francophone country, it was much easier to operate in. Perhaps this was because they recognised that there was a need for huge investment as a result of the civil war. Basically, Ivorians don't care whether you are black or white, francophone or anglophone; they just want you to invest. That is how it should be if you really want to progress.
How has Sahara helped the development of the industry in Nigeria?
We are pioneers in the industry - we blazed the trail of indigenous operators in oil and gas. It was unusual for a local company to attempt to break into an industry dominated by foreign oil companies, especially during the difficult years of the military era. However, through sheer determination we were able to open up our business. The rest is history. When we started diversifying and bringing in storage facilities, it was not on the business radar of many Nigerians. But we saw that as an opportunity to further expand the oil and gas industry in Nigeria. We were also unique in the way we diversified into other countries. We stood out because we were trying to create new businesses in our services where such businesses never existed.
With so much oil in Africa, there is plenty of scope for exploration and production.
The recently passed local content law is meant to protect indigenous operators like you. What is the level of compliance?
The local content law was much needed in the industry. However, long before that bill was passed, a lot of companies in Nigeria were operating local content guidelines. They were doing things in the industry that ought to have been backed by the government, but weren't. It was only as a result of a lot of effort that the barriers were pushed away. Unfortunately, companies were not consulted enough about local content so there are a lot of gaps in the legislation. So we really need to go back to the drawing board to look at where the gaps are and find solutions.
Many believe that one of the constraints of local content is dearth of human capital - does the law provide workable solutions for this?
I agree but has the government come up with any workable solutions for this? None that I know of. For it to work, you must get back to the basics - to the schools, because you have to start from there if you want to build competence. That is how you can close the gap. After this you look at the time frame that it will take to close the gap. Let's assume you are starting from zero level and you now want to build human capital and competence - in that case you have to start from secondary school level. You start thinking about how to invest in students who are scienceinclined, bearing in mind that you are training them for six years. By the time they get to university, that is another project that may take up to 10 or 11 years. That is the gap that you want to close.
During these 11 years what do you do? You must understand exactly what you want to do. You must have a direction, some sort of a road map.
For instance, we have production and exploration access to develop, so we recruit Nigerians from Shell or Chevron to develop this competence, which costs us money. I am not doing it because the local content law is driving me but because that is what I need to do to drive my business. To drive the local content in the right direction, or to close the human capital gap, I believe the indigenous companies and the government should be in partnership.
As many African nations join the oil producing league, what advice do you have for these emerging economies?
Nigeria is a case study for everyone. If you want to know how to destroy your ecology, then come to Nigeria. If you want to see good contracts that will help you generate more revenue come to Nigeria. Nigeria is a good case study for the best and for the worst. It is unnecessary for countries in the West African region like Ghana, which are just beginning to produce oil, to make the mistakes that we made. They have an example on their doorstep.
Take the ones that are good and leave those ones that are bad - the ones that are bad don't even let them into your system.
You were a ministerial nominee. If you had become a minister what value would you have added to the growth of Nigeria?
I would have brought my track record to bear on my service to the nation. If you have this track record, you don't want to compromise. I have also developed local and international contacts as I grew in my career. Bringing all of this to the table could have helped to develop our economy.
Nigeria is said to be crawling instead of walking. What do you think is responsible for this slow pace of progress?
Even a blind man would be able to hear and feel that Nigeria is definitely not making as much progress as it should be. A lot of money has been generated in Nigeria from oil and other commodities. But a lot of that money has disappeared. In our 50 years as an independent country, people seem to have less and less sense of nationhood for every year that goes by. The thinking is, ' First of all, I spend for myself. After that it is my immediate family, then my village or my town.'
Then, for those who even consider it, My country comes last'.
I have come to the conclusion that we don't seem to have that "something" that drives us as a nation. We are not committed to our nation and as long as we have this mentality nothing can change.
Look at America. It does not matter where Americans come from, they all believe in the America Dream and in defending their freedoms to the last man. This is what we lack as a nation.
If you look at all the nations that are making progress they always have something that drives them. Look at the Caribbean, for instance. It is driven by tourism. Everyone and everything in the Caribbean, including the buildings, represents tourism. China is known for its manufacturing and they draw everyone into this ideology.
We have plenty of money in Nigeria but the people who should channel this money in the right direction are not committed to this country.
Since the amnesty with the Niger Delta militants in 2009, oil production had picked up. Is this a sign that the amnesty programme has been a success?
We have removed the militants from the creeks and disarmed them. We have stopped them from blowing up pipelines. We are giving them training - so in that sense it has been a success. But what jobs will they get when they fmish? If they don't end up being gainfully employed, the cycle of violence and illegal bunkering will continue.
The root of militancy is poverty.
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