How to Do Business in the Nigeria Oil and Gas Industry

Have you ever thought of doing business in the Nigerian oil and gas industry?

Do you want to start any business in the Nigerian oil and gas industry without knowing how to start? Don't worry, I will show you the way in this article.

There are so many business opportunities in the oil and gas industry that you can venture into irrespective of your profession. This is a privileged information that will walk you through the necessary steps and requirements to help you achieve success.

Before we start, let’s look at the categories of areas where you can invest in the Nigerian Oil and Gas industries. After analyzing this industry, I discovered the trending areas that are profitable in the industry. You have to stick to these areas because of their necessity in the industry.

Available Opportunities in Nigerian Oil & Gas Industry

Sequel to establishment of the Nigerian Content Act, development and sustaining the Nigerian contents has afford huge business opportunities to a large number of Nigerians from all walks of life and varied experiences, given the multiplier effect and spill over into other industrial and commercial sector of the economy.

As you can see, the spread of opportunities can be gleaned from the list of categories of the activity areas below.

List of Categories of Activity Areas:

Advertising / Publicity
Materials & Procurement
Welding, Fabrication and Construction
Engineering
Well Drilling Services / Petroleum Technology
Exploration, Sub-surface, Petroleum Engineering and Seismic
Research and Development Services
Information System / Information Technology / Communication Services
Health Safety and Environment (HSE)
Transportation / Supply / Disposal Services
Marine Operations / Logistic Services
Finance and Insurance
Installation / Hook-up and Commissioning
Inspection, Testing and Certification
Project Management / Consulting Services
Surveying / Positioning Services
Modification / Maintenance
Shipping
Catering
Office Materials Supplies
Estate Management

You can see that virtually all Nigerian graduates can do business in the Nigerian Oil and Gas industry with over 20 activity areas listed above. So, why are you staying on the sideline watching foreign multinationals to enjoy everything? If you are a Nigerian graduate or a trained tradesman, it means that you are eligible to do business in the industry.

How you can Start Small: An action plan

Below is the progressive approach to start off and growing your business in an activity area in the Nigeria Oil and Gas industry.

Identify You Activity Area

First, identify business activity where you have a proven competence, capability and capacity to perform well. Let’s say you read marketing in the university, you can do well in category areas such as office equipments supplies, materials & procurement and many other areas that involve sales and supply. You can even function more in oil and oil products marketing and distribution. Simply check he activity areas and identify where you can function best. You can see that virtually every profession has something to offer in the industry.

Register Your Business

The next step is to register your business name or limited liability company with the Corporate Affairs Commission (CAC). See the documents and the procedure you need below.

Create a business name that suits your chosen activity area. Visit the CAC office nearest to you with the following documents;

(a) A copy of Memorandum of Article of Association

(b) List of Directors (and Subscribers)

(d) Tax Clearance Certificate of Subscriber

(e) CAC assessed cost and fees (this is based on the size of the shares being subscribed to)

You are done with registration with the CAC. Now go to the next step.

Establish a Functional Office

Now your business is registered, go ahead and establish a functional office, with proper organizational structure. Your office should be located in an assessable location. This means that it must have a standard address in the town planning scheme. It should be well furnished with furniture and office equipment. Your office will save as your business contact point and it should have a well organized leadership structure and hierarchy.

You can get Office Equipment at Konga | Nigeria Largest Online Mall

Apply and Obtain DPR Permit

The next steps are applying with the Department for Petroleum Resources (DPR) and obtain the oil and gas industry permit. After application and approval, you will obtain the annual DPR Licence (for Operators) or Permit (for consultants, contractors, and service providers)

The application for DPR permit lies in accordance to the chosen category of the activity area(s) that you are applying for. According to DPR requirements, the activity areas are classified into three broad categories.

1. Major Category

3. General Purpose Category

3. Specialty Category

The categories are arranged in increasing order of sophistication and complexities of both technical and specialized skills.

Activities in the General Purpose categoty and then grouped into four (4) sub-categories, which are further subdivided into nineteen (19) sub-sub categories to fit almost all human endeavours.

The Major Category has twenty (20) sub-divisions, while the Specialised Category has nine (9) sub-categories. You can find all these classification of the activity areas in the DPR Guidelines and Application form in the DPR Official website. See the registration requirements below.

DPR Documents Requirement for General Purpose Category (New or Renewal )

Completed application form (you can download it at the DPR Official website)A copy of Certificate of Incorporation (from CAC)
Copies of Form C.07, CAC7, CAC 2.3 or Copies of CAC forms 2, 6, & 7 (you can be clarified with this at the CAC)
Copy of current Tax Clearance Certificate (TCC) of your Company
Copy of current Tax Clearance Certificate (TCC) of your Directors
Bank Draft in favour of Federal Government of Nigeria (paid to DPR FEES Account)
A copy of Bank Draft
A copy of Expired Permit (if you are doing renewal)
A copy of photo identification of person manning the company (ID card)

DPR Documents requirement for Major or Specialized Category

A copy of Certificate of Incorporation (from CAC)
Completed application form (you can download it at the DPR Official website)
A certified true copy of Memorandum and Article of Association
Copies of Form C.07, CAC7, CAC 2.3, 7 (you can be clarified with this at the CAC)
Bank Draft in favour of Federal Government of Nigeria (paid to DPR FEES Account)
A copy of Bank Draft
A copy of Expired Permit (if you are doing renewal)
A copy of photo identification of person manning the company (ID card)
Copy of current Tax Clearance Certificate (TCC) of your Company
VAT Certificate
Company’s Profile (Brochure)
Comprehensive Staff list with their CVs
List of Equipment / Facility available to the Company
Current Expatriate Quota Approval (only if applicable)
Training Program for Nigerian Staff
Evidence of Registration with Relevant Professional Body
Copy of Financial and Technical Agreement with Foreign Partners
Worker’s Compensation Policy
Medical Agreement with Hospital or Clinic
Community Affairs, Safety, Health and Environment
Security Policy
Copy of Photo Identification

Register with the NCDMB Joint Qualification System (JQS) and Petroleum e-marketplace

This is the Nigerian Oil and gas Industry tool for identifying and selecting current potential suppliers for any type of purchases, ranging from a very simple goods and services, to supported services and other major works.

If you want to do business in the Nigeria Oil and Gas Industry, the registration with JQS shall be the first step to becoming the Nigerian Oil and Gas supplier.

Register with (Company) Users of Goods and Services

The final step in the registration process is registration with individual end users or purchasers of goods and services. It is required that all suppliers should register with them.

Suppliers to such consumers companies may be expected to

Register with the CAC or other recognized certification organization for foreign vendors.
Learn more about how to do business with large multinational companies by attending their meetings, conferences, seminars and workshops.
Understand how the company operate
Register online with the company

Register with one or more oil and gas company (ies) you want to do business with either as a contractor in DPR’s General Purpose Category or as a Sub-Contractor in DPR’s Major or Specialized categories.

After Registration

Start doing business. Scout and bid for jobs in your chosen activity area(s) where you have demonstrable competence and capacity.

Grow the develop a niche for yourself in the chosen activity area

Don’t forget to form alliance; partnership and joint ventures within and across your activity areas.

Why you should Do Business in the Nigeria Oil and gas Industry

We really need to be fully involved in the oil and gas business. Let’s not leave our wealth in the hands of the foreign multinationals. Let’s shun oil theft and bunkering and do things the right way.

See the benefit we have as indigenes:

First consideration in the award of contracts and jobs for local / indigenous contractors who have the needed equipments and machinery, consultants, services providers and suppliers.
First consideration to Nigerian-made goods and services.
First consideration for employment and training, transfer and acquisition of technology
First consideration to Nigerian professionals, educational institutions, students, lecturers etc in research and development.

That’s so far we can go in this business training. That’s the step-by-step guide on how to do business in the Nigeria Oil and gas Industry. Make use of it and tell us how it goes. If you’ll need me to work with you at any capacity, use the contact form to send me a message.

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Stay out of trouble, and success ahead!

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