Meet Dr. Ernest Azudialu one of the Richest in the Oil & Gas Sector in Nigeria, Owns fleet of 4 Aircrafts and Exotic cars, sares his Inspirational Success Story How He Founded Obijackson Group and Nestoil Plc in this Interview. How his father's refusal to sponsor him to school in the USA, orchestrated and inspired his Success.

Dr. Ernest Azudialu,

  Meet Dr. Ernest Azudialu one of the Richest in the Oil & Gas Sector in Nigeria, Owns fleet of 4 Aircrafts and Exotic cars, sares his Inspirational Success Story How He FoundeD Obijackson Group and Nestoil Plc in this Interview. How his father's refusal to sponsor him to school in the USA, orchestrated and inspired his Success.

But for  his father’s  last minute change of mind and refusal to allow him go to America to study Mechanical Engineering at the University of Alabama, his life would have been significantly different today. If only his father didn’t attend his friend’s funeral where the officiating Reverend Father said the things he said that fateful day. If only his father had come late to the ceremony and as such, did not hear what the Reverend said about sending one’s children to America. Dr Ernest Nnaemeka Azudialu must have agonised over his aborted American dream.  But unknown to him and his father, perhaps, the immutable hand of fate was redirecting his life to a roadmap laid down for him.  Red-eyed and still sulking from that disappointment, he grudgingly followed his father to  his shop. He had to duck under the counter to hide from friends he had told he was travelling to school in America, more than a couple of times. And not a few mocked him for his fate then.however, it did not take long for him to see the opportunities in the business that even his father, because of his lack of education, failed to see. from then on, there was no looking back. obijackson limited was born. a small start-up company from the rustic backyard of onitsha has now transformed into a group of companies with global presence in three continents. it is from this seed that nestoil plc sprouted. azudialu  has grown the group from a small start-up  company to a multi-billion naira public limited group and one of the biggest indigenous oil and gas service companies in nigeria. his passion for hard work is only matched by his guilty pleasures for the good things of life. fast and expensive toys, all sorts adorn his garages. arguably the biggest roll royce collector around, he parades all models of the prized machine that many would die (?) for. but according to him, they don’t excite him anymore. he talks about growing up, his business and his pleasures, his favourite toy – the gulfstream, and more.  Shaka Momodu interviewed him……

You have such a tight squeeze on time how do you relax?
I relax by spending time with my family and friends, listening to music and engaging in sporting activities..

  What sports do you like most?
I enjoy golf, tennis and football. I am also an ardent user of the gym.

Is that how you have managed to keep fit?
Oh yes. I am very keen on keeping fit as I am a health conscious person and ensure, I use fitness facilities wherever I am.

 What is your greatest fear?

I am a very optimistic person and would rather dwell on finding solutions to problems instead of being petrified by fear. I prefer to remain positive.

 Who do you admire most?

Well, the qualities I feel very connected to are motivation, hardwork, discipline and perseverance to succeed despite all odds. So, I admire people with such enduring qualities.

Having come this far in life, there must be things you probably regret in life. What  could that be?
Frankly speaking,  I don’t really dwell on regrets. I am basically a forward-looking person. Regret suggests you have virtually given up on things. I choose to remain optimistic and positive.

If you could change one thing about yourself, what would that be?
Nothing! I believe that as human beings, we are a product of God’s creation. I am largely appreciative of the qualities and experiences that have brought me thus far. I can only hope and pray to sustain the motivation and remain positive.

What is your most treasured possession?
My family and Christian faith have significantly shaped my life. I believe they are the things I treasure most.

What is the quality you cherish most amongst your friends?
Honesty, steadfastness, commitment and consideration for others. They are the bedrock of any decent friendship.

What is the quality you despise most?
Well, readily, dishonesty and laziness are not things I like to associate myself with

Many describe you as a self-made man; looking back with all you have achieved, how do you feel?
I feel I have done quite well, but I would feel satisfied when I have a sense that I have impacted on the economy such that even the upcoming generation would be able to see an indelible impact from us. I still feel there is more to do, and I am young enough to do more. So I am a work in progress and by God’s grace, we shall achieve more.

What is the most memorable moment you recall with your parents when growing up?
(Paused for a moment in contemplation and then laughed before narrating his story:)
Well, if I must tell you, one incident stands out in my mind. On graduation from Dennis Memorial Grammar School (DMGS) in the seventies, I gained admission into the University of Alabama to study Mechanical Engineering. I was so excited, I told all my friends I was going to America. You know that feeling you get then that you are travelling as a young impressionable teenager. I started walking and practising how to speak like an American. I even started keeping an Afro in preparation for America.  My parents were very happy and all was well. But things changed dramatically and changed the trajectory of my life.

There was a wealthy man in my area at the time. He owned a prominent hotel then. It was  one of the biggest hotels in the area.  He had five sons – all of whom were in America. Anyway, this wealthy man passed away and my father went to the funeral – this was shortly before I was due to pay my university tuition. At the funeral, the officiating  Reverend Father preached, and stressed on how bad it was that none of this man’s five sons had returned from America for their father’s funeral. People wept and denounced the children over that act. As you may know,  the general belief at that time, was that when people leave for America, they never come back. My father, apparently alarmed by such a prospect befalling him, got home from the funeral that night  and  called a meeting with my mother and myself and declared that he had changed his mind about my university education in America. He said, over his dead body would he pay the fees. That he doesn’t have a son that will be lost to the American society. My situation was even made more difficult by the fact that I am the first son.

It was the worst thing that had happened to me in my life then. I was beyond disappointed. I  was distraught and very sad.  I could hardly bear it. I started to hide in my father’s shop everyday from my friends whom I had boasted to about my impending American trip. I tell you, it was very tough for me then. But gradually I started taking interest in his business.

For all his lack of education,  my father was a very astute businessman who started off as a fish seller, then moved on to selling hand tools and building materials. His company was called D.A. Ifeanyi and Brothers Trading Co. By the time I had graduated from DMGS, my father had  three branches of shops in Onitsha – which was rare in those days and he coordinated them very well.

Looking at my father’s business through secondary school educated eyes, I realised there was an opportunity to improve his business if only my father had education. He was buying things from importers and then reselling. And I felt he could do better than that and make more money. So, I started writing to the addresses on the labels of his products, and this culminated in the visit of one of the manufacturers from abroad, Mr. Allan Mayer, who later became his business associate. The result of the visit was that, my father started  importing directly the products he used to buy from other importers. Mr. Mayer started shipping goods on credit to my father and giving him six months to pay. Suddenly, the scope and volume of my father’s business changed.  Goods were being shipped to him in containers. And he made a lot of money such that the old man was afraid of his rapid growth and success.

Impressed by my business acumen, my father encouraged me to start my own business.  That is how I started Obijackson West Africa Limited in 1982. It turned out that what was initially my biggest disappointment became my biggest blessing. My father taught me a lot about business. I eventually went to the University of Benin and graduated with a BSc in Accounting. And was later awarded with a Doctor of Business Administration by the University of Nigeria, Nsukka.

I have myfather to thank for that decision to cancel my school trip to America. That decision changed everything for me.
I am happy to tell you that before my father died,  he saw me become a serious businessman – I had already started Nestoil.  And things were shaping up. I bought him the first brand new Mercedes in my town when I was in my 20s. I bought it for him before I bought one for myself.

Nestoil recently carried out a restructuring of its board, what informed this move and what was it geared towards achieving?
Thank you very much. Our recent board reconstitution is aimed at injecting fresh perspective into an already impressive board profile. With our ongoing corporate restructuring, it has become necessary to diversify our board to give added impetus to our overall strategy. So we expanded our board in both executive and non-executive capacity. Our aim is to create a lean, efficient, profitable and socially responsible company. Apart from achieving operational efficiency, we also intend to engender greater fiscal discipline, risk management and control, improved compliance, governance and best practice culture. In achieving these laudable objectives, we have expanded our board by admitting persons who will add tremendous value. In addition, we also inaugurated a supervisory board to perform oversight functions on the entire process.

Only recently Nestoil acquired IMPaC OIL and GAS Engineering Company, how does this acquisition fit into your overall strategic growth plan?
Engineering services is a crucial part of the entire EPCC chain ie Engineering, Procurement, Construction and Commissioning. Nestoil is the foremost EPCC provider in the Nigerian oil and gas sector. Before the acquisition of IMPaC, the “engineering” aspect was usually outsourced to third-party companies. The acquisition of IMPaC is aimed at adding significant value to this chain. IMPaC  is a world class engineering services company and its acquisition has impacted positively in our overall growth plan. In addition to meeting our in-house engineering services needs, IMPaC is also actively providing such services to other companies. The acquisition adds substantial resources to our existing portolio and fits perfectly into our one-stop shop consolidation strategy. IMPaC renders a broad range of engineering and consultancy services to the oil, gas and power sectors of the onshore and offshore energy industry. Specifically, IMPaC provides integrated development and innovative solutions for exploration and production facilities, offshore structures as well as pipelines and landfalls. The scope of competence includes all necessary utility systems, platforms or vessels. The engineering also includes transportation and marine installation of topsides and modules. So it really cuts across the entire chain: Procurement, Construction, Installation and Commissioning, and, if required, operations and maintenance.

Your business interests is now so diversified that one can hardly keep track with you,  tell us about this hunger for new business investment and how you are keeping track of these investments?

We have typically diversified by identifying appropriate value adding opportunities. This way, we have pioneered the introduction of skills, technology and knowledge. This has been the driving force behind our growth. Recently we entered into a joint venture with the Dutch company A. Hak drillcon to form Nesthak, a company that specialises in horizontal directional drilling [HDD]. Horizontal directional drilling is a trenchless method of installing underground pipes, conduits and cables along a prescribed path by using a surface-launched drilling rig, with minimal impact on the surrounding area. HDD constitutes an important component of many pipeline construction projects and this drilling technique is an environmentally friendly, safe, reliable and efficient alternative to conventional construction methods. HDD is more efficient, often more economical, faster and, above all, has much less impact on the environment.  So, Nesthak clients are able to take advantage of our local pipeline construction expertise with A. Hak’s advanced technology. Again, in alliance with Damen Shipyards of the Netherlands, we are presently constructing a modular floating drydock. This will streamline and consolidate our drydocking activities and meet our objectives of safe working conditions, high quality craftsmanship, more competitive pricing and overall reliability. So it’s all about appropriate diversification. We have also expanded laterally into telecommunications with Smile Communications Nigeria Ltd. “Smile” is a new telecommunications company in Nigeria focused on the provision of high-quality, reliable, superfast internet services using 4G LTE technology. Smile acquired unified access service licence in 2009 and commenced commercial operation in March this year at Ibadan. With Smile, we deliver affordable, high-quality and easy-to-use broadband internet access and communication services to customers across Africa. The brand Smile is at the forefront of harnessing technologies to create innovative solutions that enable the cost-effective deployment of advanced communication services to everyone in Africa. 

It launched its first commercial network services in Kampala, Uganda in November 2009, where it provides its customers with voice and messaging services, with or without the ownership of a handset and expanded to Tanzania, Uganda and the Democratic Republic of Congo. . 

Our services are now available in Lagos, with plans to cover Port Harcourt and Abuja in a few months. To support our diversification, we have embarked on aggressive senior management recruitment that will enable us monitor our investments in various sectors. We have all our investments very much in focus.

What informed the restructuring of Nestoil being carried out by KPMG – is it designed to make the company conform to international best practice or what?
Yes. Indeed we engaged the services of  KPMG/Alliance Law Firm to guide us through the process of restructuring. This was informed by the need to ensure that our continued growth is anchored on international best practice culture regime. The Board felt that there was a need to set up structures and implement key corporate governance principles that will position Nestoil and its associate companies as a world class group.  So far we are very much on track.The restructuring by KPMG will include Enterprise Restructuring that will see Nestoil Plc and other associate companies prepare for their IPO within the next 18 months.

Your foray into power has not been as successful as you would have wished, at least for now. Is this affecting the timelines for your growth plan?
Certainly not. Challenges are usual in business, particularly at the level where we are playing. We are currently developing the Okija Independent Power Plant.The first phase, which we are working on presently, is a 495MW open cycle plant worth $700 million. Steady power generation is a pathway to economic growth. It’s a long-term investment and we are ready for the long haul. An international bid process has selected GE, Julius Berger and Daewoo as the EPC contractors for construction beginning January 2016.

Many see Nestoil as reference point for the success story of the local content law. What is your reaction to that?
Understandably, we are proud to be a reference point. Despite seeming odds, we persisted and steadily developed what is arguably one of the largest diversified oil and gas industry service groups in Nigeria, with the ability to implement highly complex projects in areas such as pipeline construction,  pressure vessel fabrication, mechanical and civil works, flowstation upgrade, dredging, oil exploration and production. These works are done by a highly motivated workforce that is 98% Nigerian. The Local Content Act has also allowed indigenous companies to grow on an unprecedented scale and acquire assets. For example, Nestoil’s strategic business unit – Gobowen Exploration and Production Limited - led the NECONDE Consortium (consisting of Gobowen Exploration and Production Limited, Aries Exploration and Production and Poland’s Kulczyk Oil Ventures) to acquire a 45% participating interest in OML 42, a large oil block in the swamps of Niger Delta from Shell Petroleum Development Company of Nigeria Limited, Total E&P Nigeria Limited, and Nigerian Agip Oil Company Limited. The remaining 55% participating interest in OML 42 is held by NNPC. With nearly 1 billion barrels of crude oil and trillions of cubic feet of gas, OML 42 is one of the biggest assets in the Shell divestment drive. In addition, Gobowenacquired substantial shares in the Oriri field (OML 88) in the Niger Delta from Goland PDC and have also acquired 51% participating interest in OPL 917 – an onshore block – among other assets we are contemplating. We are a prime example of how local companies can make an impact if given a level playing field to perform. People who are interested in participating in the oil and gas sector, see us as a symbol of encouragement. Nestoil can be replicated by other Nigerians, but they have to be patient, committed and be willing to learn over time. These are attributes we imbibed and are still practising till date. The Group known as Obijackson Group has grown into several other companies with diverse cross-sector interests in different aspects of the economy. We have offices on three continents and employ well over 2,000 people.

Another area we are particularly proud of at Nestoil is our drive for community development. Our community relationships are a vital component of our business operations, and is reflected in a number of our philanthropic commitments channeled mostly through our foundation - The Obijackson Foundation. We work quietly to enhance academics, sporting events and providing the necessary socio-economic support to society.

How has the policy  worked and the challenges still faced by indigenous companies and what needs to be done to increase local participation in the oil industry?
The Local Content Act changed the Nigerian oil and gas landscape as it gave more local companies opportunity to compete on a level playing field. As an economic policy, it has positive implications for employment with significant multiplier effect. Finance and capacity building has continued to be a challenge, but I am of the view, these challenges are usual for such a far reaching policy as the local content concept. There are also issues of adequate well-trained personnel. Again, this I believe will be conquered over time. The situation now is much better than we met it when we set up shop over two decades ago.

And it can only get better. One of our associate companies, Energy Works Technology Limited has the largest and one-of-a-kind offshore fabrication facility in West Africa. Recently, we successfully rolled out the first of 3 Clad Plates being 90+4mm Thick Clad weighing 20 Tonnes for SPDC Soku Nag Separator – this feat is a first for the Nigerian Fabrication Industry.

A lot of people say doing business in Nigeria is very tough; tell me what it has been like for you especially bearing in mind the sensitive nature of the sector you operate in?
It was and still is a tough environment to say the least particularly in our sector. The early days were quite challenging, primarily because the climate of the early nineties was not receptive to an indigenous player competing against better established foreign entities. Confidence, finance, pedigree, qualified personnel, were all teething problems associated with that era. But we persevered. With the benefit of hindsight, we were pioneering a movement that paved the way for greater local participation and ultimately made the Local Content Act realisable.

Rapidly, you seem to be trying to consolidate your presence in the upstream. What has informed this new and aggressive drive?
Our drive to go upstream is being fuelled by our drive to cover the entire oil and gas value chain, and ensure forward and backward integration. We started out as an oil and gas service company, then moved to acquire oil and gas assets as a way of consolidating our hold in oil and gas production. Our oil and gas assets would be useful in our quest for power generation. Our extensive gas reserves from our joint ownership of OML 42, for example, can be used to generate power.

This would no doubt transform you from an oil service company working for the IOCs to a competitor with IOCs
Yes of course. Our block is already producing oil – just like the IOCs produce oil. So yes, that makes us basically competitors in the same market.

Your company is currently undertaking the construction of a massive seventeen-story building to house your corporate headquarters; tell me how significant the project is for the overall profile of your company?
The Nestoil Towers ia another testimonial of our commitment to investment in the Nigerian economy, innovation and environmental consciousness. It has been designed and is being constructed as a green building. By constructing a certified green building, we are responding to some of the most important challenges of our time: climate change, over dependence on non-sustainable sources of energy – with an ecologically responsible solution. Upon completion, our new corporate head quarters will be a veritable symbol of how a local company participation in oil and gas, can add value to the Nigerian economy. It is a bold statement of strategic importance to our company. The project is progressing smoothly and by God’s grace we shall commission the building sometime in 2015. The structure is being built to meet the Leadership in Energy and Environmental Design (LEED) standards of certification and has a Silver rating. LEED was developed by the U.S. Green Building Counsel to provide a framework for applicable and measurable green building solutions.

You have exotic, fast and expensive cars, which is your favourite among the lot?
I have always liked to own choice and fast cars, both in Nigeria and overseas. The ones that currently stand out for me include the Lamborghini Aventador and the BMW High Security 760, called BMW Individual – also, as a Rolls Royce collector, I have all brands of Rolls Royce, including customised versions.
Ironically, my very tight business schedule takes me around a lot and I spend more and more time in the air, and now have a fleet of four aircrafts of which the Gulfstream is my favourite.