Promoting ‘indigenisation’ in the Nigerian economy was the subject of a recent Lex Africa seminar, which asked how foreign investors were forging partnerships with local players, using local content and local manufacturing capacity and transferring valuable work skills.
There was no shortage of success stories emanating from the gathering in London. Most noteworthy has been the massive job of fabricating and integrating six modules of oil producer Total’s new floating, production and storage offshore vessel (FPSO), which will operate in the ultra-deep-water Egina oil and gas field 200km off the Port Harcourt coast.
The work, carried out at the Saipem and Hyundai Heavy Industries yard in Lagos, took six million man-hours – creating hundreds of jobs and bringing multi-dimensional development in its wake. Importantly, an estimated USD5-billion in costs was retained in Nigeria, instead of the expenditure going to foreign economies, as had previously been the case with such projects.
Other shining local content examples in the oil and gas sector have been fabrication of the jacket for the Amenam drilling platform at Warri’s Globestar shipbuilding yard; Saipem yard’s manufacture of the Okpoho platform, and a well-jacket and helipad for ChevronTexaco’s Mere-X, which was built by Transcoastal Nigeria. All these large projects created jobs, built local capacity and stimulated the Nigerian economy.
Article compiled by Osayaba Giwa-Osagie, Senior Partner, Giwa-Osagie & Co