Business
Intrigues as NNPC Exploration and Production Limited (NEPL) and NECONDE Struggle to Develop 0ML42 By Efemina Williams
Intrigues as NNPC Exploration and Production Limited (NEPL) and NECONDE Struggle to Develop 0ML42
By Efemina Williams
Our attention has been drawn to recent false and malicious publications regarding the investments of well-known philanthropist and entrepreneur, Dr. Ernest Obiejesi (OFR) in 0ML42. Dr. Obiejesi for more than 4 decades, either directly or through any of his associated investments played major roles in the growth and development of host communities.
For the records, the 0ML42 is an Asset owned by NEPL and Neconde but operated by NEPL. The NEPL and NECONDE partnership has been riddled with all manner of intrigues and drama to the chagrin of the host communities who have patiently awaited improvements in their livelihood and those of their loved ones.
It is a pity that stakeholders including the host communities, the Nigerian government, and her people have been denied the expected benefits from this Asset. A value-driven approach to ensure uninterrupted production of hydrocarbons from the field has consistently been fought against by some elements who are just interested in procurement and award of contracts.
This unfortunately was the case for nearly a decade until the government decided on an alternative funding mechanism that is envisaged to bring a disciplined and more accountable approach to operations. Sadly, this is not what inspires those who do not believe in integrity. Dr. Obiejesi has been nicknamed a “fighter.” I heard that the man has been fighting those bad elements. Personally, I do not like fighting, but if fighting will enable him to achieve his years-long desire of bringing a disciplined, transparent, and more accountable approach to operations in the 0ML42 Assets, then let him fight on. It is for good. But I don’t envy him.
As I said, I do not like to fight, but can you blame the man? For instance, it is unbelievable that the Asset will be allowed to shut down at a time when the Federal Government is demanding an increase in production and oil prices are nearing US$100 per barrel. Besides, Chimaobi Okoro who is the NEPL representative on the Asset appears to be more interested in jumping from one Asset to another, not too long ago, he moved into OML 42 and since then the production and stability that was being achieved with the community and vendors seems to have fallen apart as he seem to be interested in non-value driven contract award rather than well thought out quality execution strategies, asset stability and production.
Recently a vendor supplied fuel (VLSFO) that was of very poor quality but was rejected by a vessel owner (another contractor) but some incorrigible members of the Asset team are pushing that this should be accepted and paid for even if it won’t be used. Upon inquiry, it was realized that these government officials who use these funds to support their families in Canada, purchasing houses in Dubai and Lekki, and have expensive lifestyles that are way above their salary income.
They work with some dissident community elements and are fighting desperately to ensure they grab these fictitious contracts disguising themselves as community contractors, instead of pushing for the Petroleum Industry Act (PIA) and the development of the Asset that will benefit genuine investors, the Government, and the community.
As a community, we can say that we have seen it all. We have observed these two “supposed” JV partners hurl aspersion at each other, and we have observed a lazy and lackadaisical approach to Corporate Social Responsibility (CSR). Recently we have observed the return of old players who honed their skills in nefarious activities during the AMT period. These “returnee” old players have been doing all manner of things in order to scuttle a recent beneficial solution championed by Dr. Ernest with the alternative funding mechanism — Financing and Technical Service Arrangement.
I care little about Dr. Ernest as a person and his riches, but I doff my hat for his tireless persistence to bring transparency and increase production for the benefit of Nigeria and Nigerians. But I must say that I still hold the entities NEPL and NEL responsible for the state of affairs in 0ML42.
It is known widely within the community that Dr. Ernest for several years undertook the burden of a CSR initiative termed the Peace Bonus. He had wisely put structure to the initiative which prevented the bad apples within NEPL and NEL from dipping their proverbial hands in the cookie jar. This wise initiative has been ensuring that the community has full transparency on the remittance. When he struggled under the low oil price regime, he still insisted that enhanced CSR- GMOU- practice being deployed by the IOC should be implemented on the Asset.
Once again to ensure transparency, a well-known astute, and principled community member with a consultancy practice was assigned this promising task. Today, the PIA Chapter 3 (Host Community Development Trust Fund) which by law requires that the Settlor (NEPL as Operator) should implement within the deadline of August 2022 is yet to be done. I keep wondering, why NEPL is still the operator? While it may be evident that there are indeed bad apples in these organizations who are vision scuttles, it may be said that the mistake Dr. Ernest continues to make is that he has left his precious investment to be attended to by persons who have not invested a dime and essentially have nothing to lose.
Williams, a seasoned Public Analyst, writes from Asaba, Delta State
Business
Forging a Continental Future: Nigeria and South Africa Unite to Unlock Africa’s Mineral Wealth
Forging a Continental Future: Nigeria and South Africa Unite to Unlock Africa’s Mineral Wealth
By George O. Sylvester, Reporting from South Africa
CAPE TOWN, April 17, 2025 – In a landmark move aimed at reshaping Africa’s economic future, Nigeria and South Africa signed a historic Memorandum of Understanding (MoU) to collaborate in the solid minerals sector. The agreement, reached during the 11th session of the Nigeria-South Africa Bi-National Commission (BNC), represents a strategic alliance focused on harnessing Africa’s vast mineral wealth for mutual benefit and sustainable development.
The deal marks a bold shift towards intra-African cooperation, at a time when global competition for mineral resources—especially critical minerals for green technologies—is intensifying. With the African Continental Free Trade Area (AfCFTA) now operational, this bilateral partnership lays the groundwork for a new continental approach to resource governance and economic diversification.
A Tale of Two Giants
Nigeria, long regarded as a mono-economy reliant on oil (which accounts for over 85% of its export revenue), has begun to prioritize the mining sector as a vehicle for economic diversification. According to the Nigerian Extractive Industries Transparency Initiative (NEITI), the country’s solid minerals sector contributed a mere 0.63% to GDP as of 2022, despite holding an estimated $700 billion in untapped mineral reserves including gold, lithium, columbite, iron ore, and uranium.
In contrast, South Africa’s mining sector, which contributed approximately 7.5% to GDP in 2023 (StatsSA), is globally renowned for its depth, technological sophistication, and regulatory framework. With over 100 years of mining history, it boasts world-class infrastructure and expertise in areas such as deep-level mining, beneficiation, and environmental management.
The union of Nigeria’s raw potential and South Africa’s technical prowess could become a game-changer—not just for both economies but for Africa’s collective push toward industrialization and self-reliance.
Key Components of the MoU
1. Joint Geological Mapping
Using satellite imaging, geospatial technologies, and AI-powered mineral detection tools, both countries will collaborate on large-scale geological surveys. This effort is critical in Nigeria, where over 80% of the land remains geologically underexplored, according to the Nigerian Geological Survey Agency (NGSA).
2. Data Exchange and Transparency
A core pillar of the agreement is real-time data exchange between the NGSA and South Africa’s Council for Geoscience. This will enhance transparency, reduce investor risk, and improve planning. By adopting South Africa’s data management frameworks, Nigeria aims to move toward international best practices in resource classification and public disclosure.
3. Capacity Building and Technology Transfer
To reduce Nigeria’s dependence on foreign consultants, South Africa will assist in training geologists, metallurgists, and mining engineers through academic exchanges, short courses, and certification programs. Nigerian professionals will also be trained in advanced techniques such as Elemental Fingerprint Technology, which determines mineral origin—crucial for combatting illegal mining and smuggling.
4. Exploration of Agro and Energy Minerals
The MoU includes joint ventures in exploring agro-minerals like phosphate and potash (needed for local fertilizer production) and energy minerals like lithium and cobalt—essential components of electric vehicle batteries and clean energy storage systems. Nigeria’s nascent lithium reserves in Nasarawa and Ekiti states could prove critical as the world pivots toward decarbonization.
Economic Potential
According to PwC’s Nigeria Mining Sector Report, the solid minerals industry could contribute up to $27 billion annually to Nigeria’s GDP by 2030, if adequately developed. This partnership is expected to catalyze investment and attract global mining companies previously hesitant about Nigeria’s regulatory unpredictability.
Already, projections suggest the MoU could generate over $500 million in direct foreign investment during the first phase. Furthermore, the Nigerian Ministry of Solid Minerals forecasts the creation of 3 million jobs across the mining value chain—ranging from exploration and extraction to logistics and beneficiation.
For South Africa, this is a strategic economic expansion. With its traditional mining output slowing due to resource depletion and labor unrest, South Africa is seeking new avenues for growth. By investing in West Africa, it not only expands its mining footprint but deepens its diplomatic influence and commercial engagement with Africa’s largest economy.
Institutional Support and Structural Reforms
Nigeria’s reforms have not gone unnoticed. The introduction of the Electronic Mining Cadastral System (EMC+) has streamlined licensing and reduced corruption, enabling a transparent “first come, first served” process. In 2024 alone, over 1,500 mineral titles were processed electronically—a significant improvement from previous years marred by bureaucracy.
Moreover, the Nigeria Minerals Decision Support System (NMDSS) has made investor-relevant data—such as infrastructure availability, environmental regulations, and geoscience—accessible through a centralized portal. These tools are modeled after global standards, including Australia’s Geoscience Portal and South Africa’s SAMREC Code.
Diplomatic and Regional Impact
This partnership is more than a commercial endeavor; it is a diplomatic signal. Both countries, which combined account for over 30% of Africa’s GDP and nearly 300 million people, are demonstrating leadership in Pan-Africanism. The agreement comes at a time when Africa must assert control over its mineral wealth, especially with rising concerns over neocolonial extraction by foreign powers.
As Dr. Ngozi Okonjo-Iweala, Director-General of the WTO, noted in 2024:
“Africa cannot be the source of raw materials for global value chains without being part of those chains.”
The Nigeria-South Africa MoU embodies this vision. By focusing on value addition, local content development, and environmental sustainability, the partnership seeks to reverse the continent’s historical pattern of extractive exploitation.
A New African Vision
Underpinning this alliance is a deeper aspiration: a unified African response to global economic challenges. With AfCFTA aiming to boost intra-African trade by over 50% by 2030 (UNECA estimates), resource-rich countries must lead the charge. If this mining collaboration succeeds, it could set a precedent for other sectors—agriculture, energy, technology—where African synergies remain largely untapped.
It is also a message to African youth, millions of whom face unemployment despite living in the most resource-endowed continent on Earth. The partnership can create meaningful employment while fostering innovation, entrepreneurship, and skills development.
Conclusion
The Nigeria-South Africa mining partnership is not just a bilateral deal—it is a continental statement. It reflects a long-overdue shift in how African nations view their resources, their allies, and their future. By choosing cooperation over competition and value creation over mere extraction, both countries are redefining what African leadership means in the 21st century.
This agreement could well be remembered as a turning point—when two of Africa’s most influential nations chose not only to collaborate but to lead.
As the late Kofi Annan once said:
“Resources are not curses. Mismanagement is.”
This partnership offers Africa a rare opportunity to get it right.
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