Exploring opportunities for entrepreneurs in oil and gas sector
Contrary to what many believe, there are many lucrative businesses in Nigeria’s oil and gas sector that can be floated with relatively small amount of money for the upward-looking entrepreneur with a determination to create wealth.
In realisation of that, the women business association of the Nigeria Employers Consultative Association (NECA) brought some Small and Medium Enterprises (SMEs) together in Rivers State to give exposure to the enormous business opportunities available in the nation’s oil and gas sector in general and Shell Petroleum Development Company of Nigeria Limited (SPDC) in particular. The women association called NECA’s Network of Entrepreneurial Women (NNEW) organised this forum in collaboration with SPDC under its globally acclaimed local content initiatives.
In a statement released by Ijeoma Iheme, coordinator, Rivers state chapter of NNEW, the one-day workshop on ‘Business Opportunities for SMEs and Entrepreneurs in the Oil and Gas Sector’, Josephine Diete-Spiff, NNEW South-South chairperson, said the forum would create a platform for business diversification as participants get enlightened on what is available in the Nigeria Local Content Bill. Beyond business diversification, the forum was a platform to create linkage with Shell.
Diete-Spiff also charged the participants to ensure that a right structure was built around their businesses. According to her, NNEW’s aim is to give valuable ideals to entrepreneurs on how to turn small businesses to multinational companies with linkages around the world.
Igo Weli, general manager, local content, SPDC, in his presentation said the Nigerian Local Content Law, with an enabling environment, would bring about change in values, employment creation, security, and build a sustainable economy.
He highlighted the areas of Shell business activities that have been inspired by the Nigerian Local Content Law on oil and gas to include indigenous asset ownership, manufacturing, training, supplier development, research and development and infrastructure development.
Igo said SPDC had supported indigenous service providers to start their businesses in line with the company’s needs, and helped raised their game to world class standards. He added that SPDC currently supports manufacturing of local tools such as clamps. He explained that since financing of projects had been a major challenge SMEs face in Nigeria, SPDC launched the Shell Contractors $5 billion fund scheme in collaboration with five Nigerian banks and Shell Kobo fund targeting local/community contractors.
He advised participants to go through the Nigeria Local Content Law and identify what Shell had and where they could fit in. While assuring NNEW of support, he added that Shell would work closely with the network to ensure members participated at the Shell Annual Exhibition in 2014 including the company’s internship initiative that it recently launched in conjunction with PETAN.
Steve Ojeh, employee/industrial relations, and employee communications manager, SPDC, and a foremost leadership speaker and chairman Chartered Institute of Personnel Management of Nigeria (CIPM), Rivers State, urged entrepreneurs to add value in services rendered.
According to him, to be successful entrepreneurs, people need to love their products, be passionate about what they do and make it their priority to develop their employees to be leaders greater than them. Making references to examples of successful global businesses, he said organisational effectiveness was proportionate to the strength of leadership that exists in any company.
Things to note
Since the oil and gas industry is strictly regulated, interested businesses would need to get the necessary licences and approvals applicable to them from the NNPC, Petroleum Products Pricing Regulatory Agency (PPPRA), Department of Petroleum Resources (DPR), Corporate Affairs Commission (CAC), and so on. Businesses that could be started by SMEs include equipment leasing, simple tools manufacturing for the industry, setting up a small refinery if one can get the licence and approvals, fuel haulage and logistics, petrochemicals refining, oil and gas publications/information provider service/consulting, filling stations to sell petroleum products, wholesaling and/or retailing of cooking gas, kerosene, and so on.
OLUYINKA ALAWODE