WATCH THE VIDEO HERE By Thomas Agboola By the twilight of 2024, Nigeria’s local content participation in oil and gas had risen to an unprecedented 56 percent, as reported by the Nigerian Content Development and Monitoring Board (NCDMB). This remarkable milestone reflects a strategic shift in Nigeria’s resource governance—an ongoing revolution in which Nigerian companies, workers, and communities increasingly occupy center stage in the oil and gas value chain. But long before such progress became measurable or fashionable, it was visionaries like Chief Dan Etete, Nigeria’s Minister of Petroleum Resources from 1995 to 1998, who laid the philosophical, political, and structural foundation for this transformation. Etete’s time in office coincided with a turbulent yet defining period in Nigeria’s history. Serving under the late General Sani Abacha, he operated in a milieu of intense international scrutiny, geopolitical tension, and entrenched foreign dominance over Nigeria’s energy resources. For decades, multinational oil corporations such as Shell, Chevron, and Mobil had maintained monopolistic control over oil exploration and production in Nigeria. Local content was virtually non-existent, and the concept of indigenous ownership of oil blocks was treated as radical, even dangerous. Etete challenged this orthodoxy with courage and clarity. He recognized that economic sovereignty was inseparable from resource control, and he pursued bold reforms to break the stranglehold of foreign multinationals over Nigeria’s oil wealth. It is instructive to note that the foresight of Etete in pioneering local content laid the foundation for the recent dynamic Nigeria First Policy by President Bola Tinubu that places emphasis on made in Nigeria goods. For the record, Etete was the one that set up Marginal Field Decree of 1998 for the benefit of all Nigerians to be included in the oil and gas industry. His tenure heralded a new era of indigenous participation and empowerment, even as it attracted controversy from entrenched interests both within and outside Nigeria. PIONEERING THE LOCAL CONTENT REVOLUTION Etete’s boldest policy decision was the allocation of Oil Prospecting Licences (OPLs) to Nigerian-owned companies. On April 29, 1998, he signed off on the award of critical oil blocks—including OPL 245 (Malabu Oil and Gas), OPL 246 (South Atlantic Petroleum), OPL 247 (Heritage Oil), and OPL 248 (Zebra Energy)—to Nigerian firms. Far from being arbitrary handouts, these allocations were grounded in a nationalistic philosophy: to redistribute wealth, transfer technology, build local capacity, and give Nigerian entrepreneurs a stake in the oil economy. It is crucial to understand the status quo Etete was up against. According to the Nigeria Extractive Industries Transparency Initiative (NEITI), over 80% of Nigeria’s oil wealth historically accrued to foreign firms, with only $5 out of every $100 remaining in the country. The rest was exported as capital flight, enriching foreign shareholders while Nigerian communities, particularly in the Niger Delta, endured pollution, poverty, and violence. Etete was the first senior public official to confront this injustice—not through rhetoric, but through policy. He expanded the Indigenous Concession Programme (ICP), which had been initiated in the early 1990s but lacked political will and institutional support. Under Etete, the ICP gained teeth. Notably, he facilitated the transfer of OPL 216 from BP-Statoil to Famfa Oil, co-founded by Mrs. Folorunsho Alakija. Today, Famfa Oil is among Nigeria’s most successful indigenous oil companies, producing in partnership with Chevron. THE SAGA OF OPL 245: A SYMBOL OF RESOURCE NATIONALISM Perhaps no oil block better illustrates the high stakes and political complexities of Etete’s tenure than OPL 245. Covering over 1,800 square kilometers in deep offshore waters, the block holds an estimated 9 billion barrels in oil reserves. In 1998, the oil block was awarded to Malabu Oil and Gas. It is important to state with high sense of responsibility that Dan Atete did not have interest in OPL 245. It was the directors of Malabu that appointed him as a consultant to the oil firm The goal, as contemporaneous documents show, was not personal enrichment but to create a Niger Delta-led consortium that would ensure the people of the oil-bearing region had a direct stake in the resources beneath their soil. The ownership of OPL 245 became a litmus test for indigenous empowerment. However, in 2001, during President Olusegun Obasanjo’s administration, Malabu’s license was revoked and the block was reallocated to Shell. This triggered a legal battle that would last more than two decades, involving multiple Nigerian administrations, international oil giants Shell and Eni, and litigation in Nigeria, the UK, France, and Italy. Despite the media firestorm and politically motivated allegations, no court has ever found Etete personally guilty of corruption regarding the Malabu transaction. In fact, in 2017, an Italian court acquitted Shell and Eni executives, and in 2021, a Milan court reaffirmed that no criminal wrongdoing was proven. Even Nigerian courts have affirmed Malabu’s title to the block on several occasions. The enduring controversy surrounding OPL 245 is a case study in how resource nationalism can be criminalized when it challenges global corporate interests. Etete became a convenient scapegoat—not because of criminal acts, but because he sought to give Nigerians ownership of their oil. ADVOCACY FOR THE NIGER DELTA
Dan Etete: Architect of Nigeria’s oil sovereignty and champion of local content
