Indigenous companies operating in Nigeria’s oil and gas industry must upgrade their capacity for global competitiveness says the Nigerian National Petroleum Corporation (NNPC).
According to the NNPC, this would help to achieve the target of reducing the cost of oil production in the country on a sustainable basis.
This statement was made by the Group Managing Director, NNPC, Mallam Mele Kyari, recently at a virtual stakeholder consultative summit organised by the Senate Committee on Local Content, according to a statement on Wednesday.
Kyari in a press release by NNPC Group General Manager, Group Public Affairs Division, Dr Kennie Obateru was quoted as saying that there was a need to amend the Local Content Act to reflect current realities in the industry.
The corporation boss, who was represented by the Group General Manager, Corporate Planning & Strategy, Mrs Eyesan Oritsemeyiwa, argued that there was a need to have a legislation to resolve the issues of funding challenges faced by local players.
Oil and gas business required high technical skills and competence to compete favourably at the global stage, according to him.
He said while speaking further on the need for greater capacity building on the part of indigenous companies that the nation’s education system has a great role to play in the development of highly skilled technical manpower.
The nation according to The GMD, has made some good progress from the era when there was no single indigenous operator in the oil and gas sector to the current situation where local operators have risen to double digits.
He commended the National Assembly’s initiative to review and amend the Local Content Act and urged the committee to ensure that it was carried out in a timely fashion in order for the law to deliver maximum value for the nation.
Kyari commended the legislators for the plan to extend the local content law beyond the oil and gas industry to other sectors of the nation’s economy, stressing that it would open up the non-oil sectors to growth and development.