‘Value creation in oil,gas industry hinge on effective local content’ 

As the clamour for value creation in the oil and gas sector intensifies, industry close watchers insist that this can only materialise on the back of a strategic implementation of the local content act.

Nigeria’s oil and gas sector between 2015 and 2016 raked in $10 billion (about N200 billion) worth of investments through the Local Content Development Policy.

Amy Jadesimi, managing director of Lagos Deep Offshore Logistics base (LADOL) told BusinessDay that enforcement of the local content act would encourage Nigerians to invest their money here in building, investing in asset and human capital development, saying that more importantly people should understand that local content should include the whole of Nigeria.

She said the idea behind the Local Content Act is very timely and remains incredible important to the development of not just the oil and gas industry, but capacity across other sectors of the economy.

According to her, “Local content advocacy is about creating jobs and opportunities across the country and I think that is the only way we can be able to overcome the resource curse and get into an era of positive growth which would tackle poverty and inequality in our country”.

Wumi Iledare, a professor and director Emerald Energy Institute, University of Port Harcourt, Nigeria observes that the oil and gas industry has contributed tremendously to the overall growth of the Nigerian economy.

Iledare disclosed that the upward expansion trend in the industry has created demand for a wide array of jobs ranging from professionals such as geologists and engineers to skilled blue collar jobs such as technicians, welders and electricians.

He however maintains that the imperative for the growth and survival of the oil and gas sector in the country should be anchor on the enforcement of the national content mandate which would require technicians of all shades and grades.

According to him, “To meet this growing demand in the oil and gas industry for skilled technical workers, there is a huge need for the oil companies to patronise technical colleges to meet this demand”.

He advocate that by growing investment in technical education, there will be reduction in capital flight by the decreasing the use of expatriate staff as technician stressing that this will lead to increase in the rate of employment of youth, increase in the economic growth regionally which will in turn increase the wealth of Nigeria within the her border and grow the economy faster.

Oil and gas analysts that Nigerian Content Policy represents a catalyst for the nation’s industrialisation because the policy has been tested as a result of the current volatility in oil prices witnessed globally.

KELECHI EWUZIE