The recent economic downturns in both Nigeria and South Africa have challenged the “Africa Rising” narrative. Though the two countries have officially escaped their technical recessions, challenges loom in the days ahead. The slump has opened plenty of discussion for how the two countries can rebuild investor confidence and adapt for future challenges.
For Nigeria specifically, the road ahead depends on their willingness to embrace emerging trends in the oil and energy sector. Recently adopted legislation by the Nigerian government intends to make changes to the country’s energy industry Nigeria’s largest sector.
The new legislation, named the Nigerian Petroleum Industry Governance Bill, or PIGB, is the result of years of proposed changes to the industry. The PIGB legislation was controversial in the energy sector, but some oil executives showed interest in the proposal.
One such executive, Benedict Peters, CEO of the Nigerian based Aiteo Group, was a vocal proponent of the PIGB legislation. He believes the success of Nigeria in the coming years depends on their capacity for being flexible with both oil and alternative localized energy solutions. This surprising position may not be the typical response of an oil executive, but Benedict Peters is not your typical oil executive.
Peters’ Unconventional Approach
Benedict Peters has become a powerful figure in Nigerian oil, and his Aiteo Group is quickly gaining a reputation as a leader in the field. Born in 1966 in Nigeria, Benedict attended the University of Benin. After completing his degree in Geography and Regional Planning, Peters began his career right away in the energy sector, co-founding the petroleum company Ocean and Oil. Later, he took a job as a managing partner for the MRS oil firm.
The lessons he learned over those years helped lead Benedict gain valuable experience in the industry. In 1999 he founded the Aiteo Group, where he still works as CEO. His successes with Aiteo Group have positioned him among Nigeria’s billionaires. His estimated net worth is currently $2.7bn, and will surely rise in the coming years.
Benedict’s leadership and pragmatism has brought his company plenty of success over the years. In their most recent feat, Aiteo locked down the licensing to purchase one of Nigeria’s largest onshore oil blocks, named OML 29. The acquisition of this block has made Aiteo a serious competitor and force to be reckoned with. Though viewed as a questionable investment when originally acquired, the company’s purchase has proved to be a success in the long term.
The OML 29 block alone has raised Aiteo’s oil output up from 23,000 barrels of oil per day (bpd) just a few years ago to their current standing of 90,000 bpd. This is a huge increase for the company, and according to Peters, they are just getting started.
The company is also pushing their brand to the public. Recently, Aiteo locked down a sponsorship deal with the Nigerian Football Federation, where they have been given rights as the primary sponsors for the Nigerian Federation Cup. This means Aiteo will be seen by all fans in football-crazed Nigeria during the Nigerian Federation Cup matches, potentially becoming a household name in the country.
Nigeria Looking Forward
Peters’ pragmatism and out of the box approach is what made him a vocal supporter of the PIGB legislation. Peters believes that in the long term, Nigeria should encourage an approach for their energy sector which strongly supports regional and localized solutions for energy. This includes macro solutions, such as their current use of giant oil refineries, but also a complete adoption of micro solutions. These micro solutions would take advantage of alternative forms of energy, which will be more beneficial for remote African villages and towns which may not be able to easily connect to the energy grid.
Further, Peters says that the overall lack of energy infrastructure in many African countries today is beneficial in the long run. By avoiding the maintenance and repair costs of soon to be obsolete technologies, Peters argues that African countries can instead simply focus forward and implement developing technologies and alternative forms of energy.
According to Peters, the PIGB legislation will enable regional players to emerge, providing their own local solutions to their communities’ energy problems. Since Nigeria is finally on its way out of their recession, adapting to PIGB will be beneficial for the economy looking forward, Peters argues. He believes that the legislation will bring back investor confidence, and enable these alternative players to get their foot in the door. It is this kind of pragmatism and flexibility that is bringing Benedict Peters and his Aiteo Group up to the top of Nigeria’s oil sector