By Atlantic Reports

The Chairman of Nestoil and Obijackson Group, Dr Ernest Azudialu-Obiejesi, has charged newly inaugurated boards across the group's businesses to strengthen financial sustainability, corporate governance and operational efficiency as the organisation seeks to overcome financial and operational challenges.

Speaking at a board inauguration dinner in Lagos on Friday, October 9, 2026, Azudialu-Obiejesi acknowledged that some businesses within the group had experienced financial pressures, legal and regulatory difficulties, operational constraints and weaknesses in internal controls.

He said the new boards must provide effective oversight, strengthen accountability and support management in implementing strategies capable of delivering sustainable growth.

The inauguration also featured the appointment of the Ooni of Ife, Oba Adeyeye Ogunwusi, as Chairman of the Board of Amaranta Oil and Gas Development, which manages Oil Mining Lease (OML) 42.

Ogunwusi outlined an ambitious plan to increase crude oil production from approximately 40,000 to 50,000 barrels per day to between 100,000 and 200,000 barrels daily.

Chairman Sets Five Priorities for New Boards

Azudialu-Obiejesi identified five areas requiring immediate attention: financial sustainability, operational excellence and asset protection, risk management and compliance, governance and accountability, and sustainable growth.

He stressed that board members must move beyond reviewing past financial results to providing strategic leadership and holding management accountable for performance.

“The role of the board is not simply to review historical performance, but to provide strategic direction, exercise appropriate oversight, challenge assumptions where necessary and ensure the management has the clarity, resources and accountability required to deliver,” he said.

According to him, effective governance requires directors to exercise independent judgement, question assumptions and identify emerging problems before they become more difficult to manage.

He urged board members to contribute their professional expertise while ensuring that management operates within approved corporate policies and decision-making structures.

Financial Discipline Takes Centre Stage

A major focus of the chairman's address was the need to strengthen financial management across the group's operations.

Azudialu-Obiejesi called for closer monitoring of liquidity, cash flow, debt obligations, financing arrangements, revenue recognition, receivables and operating costs.

“Strong accounting results must ultimately translate into sustainable cash flows and financial resilience,” he said.

His remarks highlighted the distinction between reporting positive financial results and maintaining sufficient cash to meet business obligations.

For companies operating in capital-intensive sectors such as oil and gas, the ability to manage debt, collect outstanding payments and finance operations is particularly important.

Azudialu-Obiejesi acknowledged that businesses within the group had encountered significant challenges, including financial pressures, legal and regulatory matters, operational limitations and concerns relating to asset integrity.

He said some businesses had nevertheless recorded improved financial performance, while progress had been made in restructuring, financing initiatives and recovering key corporate assets.

However, the chairman did not disclose the financial results of the affected companies, the value of outstanding liabilities or the extent of the reported recovery.

Without those details, the scale of the group's financial improvement cannot be independently assessed from the statements made at the event.

Risk Management Must Shape Business Decisions

The chairman also called for stronger internal controls and more effective risk management.

He said risk assessment should form part of everyday business decisions rather than being treated merely as a regulatory compliance requirement.

For companies managing industrial facilities, energy infrastructure and other valuable assets, operational risks can have significant financial, environmental and safety consequences.

Azudialu-Obiejesi urged the boards to strengthen asset protection, improve operational efficiency and ensure that potential threats to business continuity are identified early.

He also emphasised the need for directors to raise concerns promptly, recommend practical solutions and establish clear responsibility for implementing corrective measures.

The effectiveness of the new governance arrangements will ultimately depend on whether board decisions lead to measurable improvements in financial reporting, compliance, asset management and operational performance.

Ooni of Ife Targets Higher Crude Oil Production at OML 42

The Ooni of Ife, Oba Adeyeye Ogunwusi, who was inaugurated as Chairman of Amaranta Oil and Gas Development, said the company intended to significantly expand crude oil production from OML 42.

He placed current production at approximately 40,000 to 50,000 barrels per day and identified a target range of 100,000 to 200,000 barrels daily.

According to Ogunwusi, the proposed expansion would be pursued through stronger corporate governance, increased production capacity and collaboration with the Federal Government.

The monarch said he would draw on his experience in business, community development and intergovernmental relations to support the company's objectives.

He recalled that OML 42 had produced more than 250,000 barrels per day during the late 1970s and early 1980s, expressing confidence that substantial increases could be achieved again.

The historical figure was presented by Ogunwusi and was not independently substantiated in the information provided.

Although the proposed production increase could be significant, no implementation timetable, investment budget or detailed technical development plan was announced.

Achieving such an expansion would depend on factors including reservoir performance, infrastructure capacity, financing, regulatory approvals and operational reliability.

Oil Revenue Claims and Public Accountability

Ogunwusi said higher crude oil production could generate additional revenue for the company and the Federal Government.

He also claimed that Amaranta had paid more than $1 billion in royalties and other payments to the Federal Government during the previous year.

The statement did not provide a breakdown of the payments, the period covered by each category or supporting financial records.

The amount therefore remains a company representative's claim rather than an independently verified figure.

For oil-producing communities and the wider Nigerian economy, the public significance of increased production extends beyond company earnings.

Additional output may support government revenue, employment and economic activity, but the benefits depend on production costs, fiscal arrangements, environmental performance and how revenues are managed.

Community relations, environmental safeguards and the maintenance of production infrastructure will also be important considerations as Amaranta pursues its expansion plans.

Nnenna Obiejesi Calls for Values-Driven Leadership

Group Executive Director of Nestoil, Dr Nnenna Obiejesi, urged both new and existing board members to uphold the organisation's core values.

She identified integrity, leadership, innovation, teamwork and excellence as principles that should guide corporate decisions and workplace conduct.

The values, collectively described as “I-Light”, should be reflected consistently in the group's daily operations, she said.

Obiejesi emphasised that building a sustainable organisation required embedding these principles in its corporate culture rather than relying solely on the vision of its founders.

Her remarks reinforced the broader call for institutional accountability and leadership structures capable of supporting the group's long-term development.

Akabueze Pledges Experience, Financial Oversight

The newly inaugurated Chairman of Nestoil Technical Services Limited, Ben Akabueze, pledged to apply his professional experience to strengthening the company's operations and governance.

Akabueze said he would draw on 43 years of experience spanning auditing, consulting, financial services, banking and public administration.

He described the company as resilient and encouraged its leadership to learn from previous challenges while pursuing growth and consolidation.

Also speaking, Group Finance Manager Harrison Ibagere pledged to prioritise accurate financial reporting, regulatory compliance and the protection of corporate assets.

He said financial management efforts would focus on maintaining stability, improving shareholder value and meeting obligations to stakeholders.

Governance Reforms Face Practical Test

The inauguration of new boards represents a leadership and oversight initiative at a time when the group has acknowledged significant business challenges.

However, the effectiveness of the appointments will be determined by outcomes rather than commitments made during the ceremony.

For Nestoil and Obijackson Group, important measures of progress will include improved liquidity, manageable debt obligations, stronger internal controls and the recovery or protection of key assets.

For Amaranta Oil and Gas Development, attention will focus on whether the proposed production expansion is supported by realistic financing, operational plans and measurable milestones.

The group has outlined its priorities and acknowledged areas requiring improvement. The next challenge is to demonstrate that stronger governance can deliver financial resilience, operational stability and sustainable growth.

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