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i ge r i a n / L o c a l C o n t e n t , a s envisaged, means the development of local skills, technology transfer, the use of local manpower, and local manufacturing. Oil exploration began in the Niger Delta region of Nigeria as far back as 1933, but was commercially exploited in 1956. Over the years, Nigerian oil workers have been learning with the guidance of International Oil Companies [IOCs], and are ready to take over the management of the Nigeria oil & gas industry. As the capacity building continued, little progress was recorded with equipment manufacturing, repairs, maintenance, engineering and design, which were done in foreign countries.
ser vic profits.
is done in-country; expatriates are still doing jobs that local expertise can do better. There are challenges littering the landscape. Most local industry operators do not have kind words for the Government regulatory agencies, whom they accuse of not being sincere in carrying out their responsibilities. Financing has been a major challenge to local operators, who cannot match their foreign counterparts, because of their access to cheap facilities. In fact, a local operator described Nigerian bankers as being naïve. The bankers too, have uncomplimentary words for their Nigerian clients, accusing them of deliberately not employing the es of financial advisors, to be able to make more
There had been agitations from the Nigerian professionals, for them to be given 'their due'. The agitations received a shot in the arm some time in October 1996, when the then Minister of Petroleum Resources, Dan Etete, speakin g at GLOBESTAR fabrication yard in Warri, Delta State declared, “from now, foreign suppliers will have to bid and supply through a local subsidiary or agent”.
There are issues straddling the sub-sector. The OICs decry the number of times contracts have been given to local companies, and they fail to deliver, by either not meeting the deadlines, or completely abandoning the job after being remunerated remember the PH based company, who was paid millions in Dollars, only for them to abandon the contract]. Issues arise, where well-remunerated service companies, do not pay their staff well, thereby leaving the CEO as the only 'winner'.
Nigerian professionals were leaving their international jobs and multi-national employment locally to join the fray of kick-starting, a truly Nigerian company. The Federal Government was drumming it, but, in earnest, there was no law to back the talk. I remember Port Harcourt, in 2006, where a Nigerian who left his employment in the Americas, brought his entire savings, and founded an oil servicing concern, only to realize that, the OICs were not ready for people of his ilk. He described the action of the OICs as being 'clannish.'
Amongst these tales of woes are Nigerian companies who have carved a niche for themselves, over the years. Last October, at an industry meet, a bank official praised a local company who was financially disciplined, the same company finished a contract a month ahead of schedule, and same was acknowledged by the Multi-national principal.
Even though most industry stakeholders will accord Olusegun Obasanjo, [Nigeria's President, 1999-2003], with the breakthrough in Local Content quest, it was Nigeria's current President, Goodluck E. Jonathan, then an Acting President, who on April 22, 2010, formalized this dream, when he signed into law, the Nigerian Content Act. The Bill provides that IOCs operating in Nigeria must domicile at least 10% of its profit in Nigerian banks, so that these banks will have more money to fund investments in the sector. Another major feature is that, all contracts in this sector should cede 1% into a special fund, for the purpose of building capacity. The Nigerian Content law is about promoting value addition to the local economy, increase local participation, build local capacity on the back of on-going projects, and generally, increase linkage to other sectors of the National economy. Sounds good? Yes. But, some Nigerians are still running portfolio business concerns, sitting on the board of foreign companies, whose Nigerianess is being registered in Nigeria, and with a Nigerian name as Chairman. No work
Local companies are working hard to achieve the desired 80%-20% target. Practitioners like Kayode Thomas, CEO of Bell Oil & Gas Limited, whose company is soon to be a decade in practice, is an exponent of technology transfer. Both him and Henry Ojogho, EVC of Broron Group, believe in bringing in expatriates to train the local work force, who will in turn, become trainers. The success stories are increasing daily. A Nigerian company, who has expertise for a particular industry need, confessed that , the company has a deluge of requests that they cannot meet. A professional who lives overseas, but, has a business interest in Nigeria, believes that, in black Africa, Nigeria has an abundance of competent professionals. Local companies are offering specialized services formerly done by multi-nationals. Companies hitherto filled with foreign contents have made concerted efforts to be local, since, this is the way to go. The erstwhile lip service, has given way to real local content-local fabrication yards, capacity building [ it is a known fact that 70% of pilots operating in Nigeria today, are graduates of the BRISTOW flying school, who were trained in the USA], only the financial institutions are being awaited, to blend. Foreign manufacturing companies like Vallourec Mannessman Oil & Gas Nigeria, specialists in oil & gas industry valves, have a local manufacturing facility in Nigeria.
These companies who have made strides towards the full realization of the Local Content dream, are the ones we are celebrating in this edition. Beginning from this February, 2012, SWEETCRUDE SWEETCRUDE,, begins the TRULLY NIGERIAN series, and will cap it up with our May, 2012 edition commemorating the OFFSHORE TECHNOLOGY CONFERENCE [OTC] [OTC],, holding in Houston, Texas, USA in early May, 2012.