Written by Godfrey AKON

Local content: why indigenous operators need capacity upgrade- NNPC

The Nigerian National Petroleum Corporation, NNPC, says indigenous companies operating in the nation’s oil and gas sector must upscale their capacity for global competitiveness. 


The corporation also said indigenous operators need capacity upgrade in order to achieve the target of reducing the cost of oil production in Nigeria on a sustainable basis.

Group Managing Director of NNPC, Mallam Mele Kyari, who stated this recently during a virtual stakeholders consultative summit organized by the Senate Committee on Local Content, also noted that there was need to amend the Local Content Act to reflect current realities in the industry.

Kyari was represented by the Group General Manager, Corporate Planning and Strategy, Mrs. Eyesan Oritsemeyiwa, a statement by NNPC’s Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru, said.

The NNPC boss argued that there was need to have a legislation to resolve the issues of funding challenges faced by local players, stressing that oil and gas business required high technical skills and competence to compete favourably at the global stage. 

He also noted that the nation’s education system has a great role to play in the development of highly skilled technical manpower, adding that any legislation on Nigerian content development that fails to embrace issues of investment in the educational system was not likely to achieve much. 

“In terms of the interaction between industry and education, we think these new bills would present a good model that we should work with. People are the greatest assets of any nation. If you have the best brains in the industry today, as long as you are not getting good replacement for them from the educational sector when they grow old and retire, then your industry will collapse,” he said. 

According to him, the nation has made some good progress from the era when there was no single indigenous operator in the oil and gas industry to the current situation where local operators have risen to double digits, stressing that the trend should be encouraged. 

Kyari hailed the National Assembly’s initiative to review and amend the Local Content Act and urged the committee to ensure that it is carried out in a timely fashion in order for the law to deliver maximum value for the nation.



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