Mr. Olayimika Oyebanji is a Web 3 policy expert and award-winning crypto journalist with a deep understanding of how Blockchain technology can be used to improve various industries including the Oil industry.
In this interview with Nairametrics, he discussed how Blockchain technology can be used to promote transparency in an Opaque industry like the Nigerian Oil industry.
Nairametrics: Mr. Oyebanji does Blockchain have a role to play in the Oil industry?
Olayimika Oyebanji: It absolutely does! Blockchain has a role to play in every industry, whether big or small. It is either disrupting the existing model or making it obsolete. No exception can be made for the oil industry, especially when it comes to holding its key players to high standards of accountability and transparency.
The late Bashorun MKO Abiola once decried the mystery surrounding how the Nigerian crude oil is sold and promised to ensure the daily audits of the NNPC should he be elected president.
If MKO was alive today as Nigeria’s president to witness the emergence of blockchain, a probity-conscious person such as him would waste no time to commission a blockchain-based audit of our oil sector.
Nairametrics: What aspect of the Oil industry can be enhanced using blockchain technology?
Olayimika Oyebanji: There are several key aspects of the oil industry that blockchain can enhance. One of them is the automation of testing processes via smart contracts, and this is extremely important.
The testing of petroleum products is a crucial regulatory duty that must be done to perfection. I believe the recent showdown between the Dangote Refinery and the NMDPR provides some context to this.
The former accusing the latter of shenanigans would not have happened if there was a consensus mechanism in which all the participants agreed on the validity of test results and certificates.
I strongly believe that leveraging blockchain technology in this case can bring about data integrity and significantly reduce fraudulent manipulation.
Nairametrics: What key steps can a country like Nigeria take to integrate blockchain technology into the management of its oil industry?
Olayimika Oyebanji: I’m happy to inform you that Nigeria is one of the ten countries that have published their national blockchain roadmaps, which comprehensively offer valuable insights into adoption strategies. Although there is still so much to be done in this area, we have made a giant stride as a matter of fact.
As blockchain adoption continues to grow, it is expedient for the Nigerian oil industry to explore cost-effective strategies that are designed to promote transparency and reduce overhead costs in the industry.
When you consider the fact that blockchain technology is not directly involved in the physical testing of petroleum products but in the regulatory processes connected to it, you will be convinced of the need to cut government spending in such a mammoth industry.
Nairametrics: Are there any complexities that may arise in trying to integrate blockchain into Nigeria’s oil industry that is quite opaque?
Olayimika Oyebanji: If there would be any complexities or if any move to integrate this technology is thwarted, that would likely emanate from those who are opposed to probity. But when you have a government that will stop at nothing to domesticate it, then there is a way out.
Nairametrics: Any expert take on this specific utilization of blockchain technology in a sector like the oil industry?
Olayimika Oyebanji: I have had the privilege to be associated with Olinga Taeed, who is a well-known advisor to the Chinese government (Ministry of Commerce) on blockchain technology.
Mr. Olinga is a big proponent of blockchain technology in the petroleum industry. His work provides valuable insights into how blockchain systems can be commissioned in the oil industry. I personally share his view on the need to leverage disruptive technology like blockchain in the oil sector.