The Nigerian Content Development and Monitoring Board, NCDMB, has commended ESSO Nigeria for launching a $23 million permanent shorebase facility at the LADOL Deep Offshore Logistics Base, describing the investment as a strong signal of Nigeria’s rising status as a global oil and gas logistics hub.
The facility, comprising an administrative building, warehouses and storage infrastructure, is expected to strengthen offshore operations and deepen local participation in the upstream supply chain.
Speaking at the groundbreaking ceremony in Lagos, NCDMB Executive Secretary, Felix Omatsola Ogbe, lauded both ESSO and LADOL for advancing in-country capacity, noting that the project aligns with the Board’s mandate to promote Nigerian content in the oil and gas industry.
Represented by his Senior Technical Adviser, Austin Uzoka, Ogbe said the development comes at a critical time when global supply chains remain under pressure due to geopolitical tensions, particularly in the Middle East, which have driven up logistics costs worldwide.
He noted that LADOL’s growth into a credible deep offshore base provides Nigeria with a strategic alternative, reducing dependence on foreign logistics hubs. Drawing parallels with recent industrial strides such as the Dangote Refinery, Ogbe said Nigeria’s supply chain resilience has improved significantly over the past decade.
“Today, we’re pleased that Nigeria has an alternative,” he stated, adding that strengthened domestic infrastructure would cushion the country against global disruptions.
The NCDMB boss, however, urged ESSO to adopt a front-end-loaded payment structure in its contracts with LADOL to ease cash flow pressures on local suppliers.
He explained that delayed payments often force Nigerian companies to rely on high-interest bank loans, slowing project delivery.
“I would like to encourage you to pay LADOL more—ensure it is front-end-loaded so they can complete the project on time without resorting to expensive financing,” he said.
Ogbe emphasized that efficient supply chains are critical to national development and reaffirmed the Board’s commitment to partnering industry stakeholders to build sustainable local capacity.
He also charged ESSO to prioritise the use of Nigerian expertise throughout the project lifecycle.
Earlier, Chairman and Managing Director of ExxonMobil affiliates in Nigeria, Jagir Baxi, described the project as a key milestone in the company’s over 70-year relationship with Nigeria.
He noted that the facility would enhance deepwater operational capabilities while creating jobs and boosting local expertise, as construction would be largely executed by Nigerian firms.
The event drew participation from key stakeholders, including the Bank of Industry, officials of the Nigeria Customs Service and the Nigeria Immigration Service, as well as LADOL management led by Dr. Amy Jadesimi.