Nigeria is Africa’s largest oil producer and 90 per cent of the country’s revenues stem from the oil and gas sector. The growth figures of this industry are phenomenal and the financial opportunities are also enormous due to low production costs.
Dahiru Mohammed, Managing Director of the DAMAGIX Group, the leading indigenous pipe supplier to the Nigerian oil and gas industry, looks optimistically to the future of local businesses: “The next five years are going to be superb for the local industry. There are many companies like DAMAGIX that have the focus and the determination to go forward. With the opportunities now available and with the Local Content Law in place, I do not see a limit. Nigerian companies are doing very well.”The CEO of DAMAGIX is also the founding father of the ‘Local Content’ campaign for the adoption of the Local Content Act, which raises the minimum of Nigerian participation in the upstream and downstream oil and gas industries, as well as all support services.
The CEO remembers how before the Local Content Act was passed, no Nigerian companies were handling projects worth over $2 million – nowadays local companies handle projects worth up to $400 million. Increasing local involvement in the Nigerian economy is one of the first and most important steps towards making Nigeria self-sufficient in the coming years, says Mr Mohammed, and the Act sends a message of confidence to investors.
DAMAGIX is well on its way to becoming a major player in the African oil and gas market and the company is planning to build a pipe mill and a threading plant, for which much of the funding has come from overseas investors. “We have all the finance we need and about 70 per cent of the equipment is already here in the country. It took us about two years to get to this level, but we have overcome the challenges now,” remarks Mr Mohammed.
Established in 1993, DAMAGIX Group’s various companies provide line pipes and bends, casings pipes and tubulars, stainless steel pipes, pilling sheets and pipes, and pipe line construction services to the Nigerian oil and gas industry.