How can Nigeria raise the competitiveness of local oil companies?

Nigeria is on a mission to boost its local content in the oil and gas industry, with the Nigerian Content Development and Monitoring Board (NCDMB) setting a target of 70% by 2027. In an exclusive interview with CNBC Africa, Simbi Wabote, the Executive Secretary of the board, outlined the strategic objectives and enablers put in place to achieve this ambitious goal. One of the key focus areas is technical capability development, ensuring that local companies have the necessary skills and expertise to compete on a global scale. Organizational efficiency, funding, and stakeholder management are also crucial components of the strategy. Since the establishment of NCDMB in 2010, Nigerian participation in the oil and gas sector has seen significant growth, rising from just 3% to around 30% by 2017. Wabote expressed confidence that consistent execution of the board's strategic objectives will drive this figure up to 70% within the next decade. This progress has not gone unnoticed, with the Vice President of Nigeria recently visiting the Ladole facility, where the integration of one of the world's largest Floating Production Storage and Offloading units is taking place. This project represents a major milestone in local content development, showcasing Nigeria's capability to handle complex oil and gas endeavors. The success stories in the Nigerian oil and gas sector are abundant, with local companies making significant strides in boosting production and efficiency. Assets that were previously managed by International Oil Companies (IOCs) have been acquired by Nigerian firms, leading to substantial increases in production levels. For example, Ceplat has seen its daily production surge from 20,000 barrels to 75,000 barrels under indigenous management. This success serves as a testament to the positive impact of local content policies and the potential for further growth in the sector. Despite these achievements, challenges remain in making local companies truly competitive. While progress has been made in building local capacity and reducing reliance on expatriates, infrastructure deficiencies such as poor road networks and unstable power supply continue to hamper the growth of indigenous businesses. Wabote acknowledged these challenges but emphasized the government's commitment to addressing them, highlighting that local content development is a long-term journey that requires sustained effort and determination. He expressed optimism that with continued focus and support, Nigeria will overcome these obstacles in the near future.