FG Urged to Recognise Etete’s Contributions to Oil Sector

Calls are mounting for the Federal Government to formally acknowledge the pivotal role played by former Petroleum Minister Dan Etete in advancing Nigeria’s oil and gas industry, particularly in fostering indigenous participation and local content development.

Etete, who served as Minister of Petroleum Resources from 1995 to 1998, is credited with laying the groundwork for policies that opened up the sector to Nigerian companies. Notably, he prepared the policy instrument for the first marginal field bid round, conducted after his tenure in 2001, which allowed local firms to acquire and develop smaller oil fields previously held by international oil companies (IOCs). This initiative was instrumental in transferring ownership of oil fields that might not be economically viable to develop at a given time due to lack of infrastructure, their small reserves, and high development costs, from the IOCs to Nigerian independent companies.

Under the Petroleum (Amendment) Act No. 23 of 1996, enacted during Etete’s tenure, the President of Nigeria was empowered to declare a field as a marginal field, further encouraging local companies to participate in the upstream sector of the oil and gas industry, which had been dominated by multinational corporations.

Etete’s efforts to promote indigenous participation culminated in the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010, signed into law by former President Goodluck Jonathan. Before the Act, indigenous manpower and facilities accounted for only five percent of the over $10 billion yearly industry expenditure. With the enactment of the Act, it became mandatory for IOCs to set aside certain categories of jobs in the industry for local manpower and facilities, leading to a significant increase in local content.

Despite his contributions, Etete’s legacy has been marred by legal controversies, including a 2007 conviction for money laundering by a French court. However, he was later cleared of the conviction, with the French government issuing a pardon in 2014.

Advocates argue that, given the foundational role Etete played in shaping policies that have significantly benefited Nigeria’s oil and gas sector, it is imperative for the Federal Government to formally recognize his contributions. Such acknowledgment would not only honor Etete’s legacy but also underscore the importance of indigenous participation in the nation’s economic development.