According to the Managing Director, Lagos Deep Offshore Logistics base (LADOL), Dr. Amy Jadesimi, the growth of the nation’s oil and gas logistics industry is being hampered by low investment, which is largely due to the lack of a level playing field among operators, The Punch reports.
Jadesimi said the industry across West Africa is worth over $200bn and that Nigeria has the most to gain by being the hub and by domesticating all of its logistics-related activities in the country. As such, she said Nigeria cannot afford to continue to squeeze the market — keep the market small and cannot afford to have a foreign-controlled monopoly dominating the market and pushing indigenous players to one side. She stressed the need to lower the costs of operations and increase competition in the market.
“We can find significant cost savings if people patronise new facilities in Lagos and in other places. We have to encourage long-term private sector Nigerian investment so that we can make Nigeria an attractive investment destination” she said. The LADOL MD said since the passing of the Local Content Act in 2010, there had been an estimated $2bn to $4bn of investments by Nigerians building new capacity. She, however, added; “We need a lot more; and we probably need at least $10bn of investments in the next few years.”