Sustainable value in energy lies in strategic asset management, not just production – Ugburo-Shanomi

As Nigeria’s energy sector evolves, attention is increasingly shifting from production volume to operational efficiency and long-term value creation. In this interview with BusinessDay, Peter Ugburo-Shanomi, a senior business leader in energy infrastructure operations, shares insights on strategic asset management, operational governance, and the business realities shaping the sector.

There has been a strong focus on increasing production in the energy sector. From a business perspective, is that enough?
Production is only one part of the equation. From a business standpoint, what matters is how efficiently assets are managed to deliver sustained value. Organizations must look beyond output and focus on cost optimization, asset longevity, and operational efficiency. Without that, increased production does not necessarily translate into better business performance.

You’ve spent decades managing large-scale operations. How do you approach value creation in such environments?
Value creation comes from aligning operations with business strategy. It’s about ensuring that every activity, whether maintenance, planning, or execution, contributes to broader organizational goals. That includes improving reliability, reducing downtime, and optimizing resource allocation. When these elements are aligned, you create systems that consistently deliver measurable business outcomes.

What role does strategic asset management play in this?
It’s central. Strategic asset management ensures that infrastructure is not just functioning but performing optimally over its lifecycle. This involves making informed decisions about maintenance, investment, and risk management. It allows organizations to maximize returns on high-value assets while maintaining operational stability.

Many companies are adopting digital tools. How does this affect business performance?
Digital transformation is a key driver of business efficiency. It enables better decision-making through real-time data and performance analytics. But more importantly, it allows organizations to move from reactive operations to predictive and proactive strategies. That shift has a direct impact on cost control, productivity, and overall profitability.

Managing large operations also involves people. How do you balance operational demands with leadership responsibilities?
Leadership is about building systems and people simultaneously. You need structured processes, but you also need capable teams to execute them. Developing talent, fostering accountability, and ensuring alignment across teams are critical. In business terms, people are a key asset, and investing in them is essential for long-term success.

What differentiates high-performing organizations in the energy business?
Consistency and discipline. High-performing organizations don’t just achieve results occasionally; they build systems that deliver results consistently. They focus on governance, performance measurement, and continuous improvement. Over time, that consistency drives competitive advantage.

Looking ahead, what should Nigeria’s energy sector prioritize from a business standpoint?
The focus should be on sustainability and efficiency. This means optimizing existing infrastructure, improving operational governance, and ensuring that investments deliver long-term value. The goal is to build systems that are not only productive but also economically sustainable.

How important is risk management in maintaining operational efficiency in the energy sector?
Risk management is fundamental to operational efficiency. In energy operations, unexpected disruptions can significantly affect cost, productivity, and overall performance. Effective organizations take a proactive approach by identifying operational risks early, implementing mitigation strategies, and building resilient systems that minimize downtime and protect long-term business value.

In your view, what role does operational governance play in business sustainability?
Operational governance provides the structure for consistency and accountability. It ensures that processes are standardized, performance is monitored, and decisions are aligned with long-term organizational objectives. Strong governance helps organizations maintain efficiency, manage resources effectively, and sustain performance in increasingly complex business environments.

What advice would you give to emerging leaders in energy infrastructure operations?
My advice would be to focus on developing both technical understanding and strategic thinking. Success in large-scale operations requires more than managing day-to-day activities; it requires understanding how operational decisions affect business outcomes. Emerging leaders should prioritize continuous learning, collaboration, and the ability to adapt to changing industry realities while maintaining a strong focus on value creation.