The Nigerian Content Development and Monitoring Board (NCDMB) has called on African nations to optimise their supply chains in order to enhance local content development and drive economic growth.
Speaking at the 9th Sub-Saharan Africa International Petroleum Exhibition and Conference (SAIPEC), officials from the NCDMB highlighted the importance of regional collaboration in order to maximise Africa’s vast oil and gas resources.
During the African Content Forum, co-hosted by the Petroleum Technology Association of Nigeria (PETAN), industry leaders discussed the paradox of Africa holding 10% of global hydrocarbon reserves yet consuming less than 5% of its own gas, while developed economies continue to rely on African gas to power their industries.
PETAN Chairman, Engr. Wole Ogunsanya, emphasised the value of SAIPEC as a platform for the exchange of knowledge and the promotion of innovation within the oil and gas sector. He stressed that regional integration and cross-border partnerships would serve to strengthen Africa’s local content framework.
NCDMB’s Director of Monitoring and Evaluation, Mr. Abdulmalik Halilu, called for a shift in strategy, advocating for an Africa-wide supply chain network, rather than isolated national efforts. He made the point that local content should not be seen as a country-specific economic policy, but rather as a continent-wide growth strategy.
Mr. Halilu acknowledged Africa’s substantial progress in oil and gas exploration since the 1960s, but also expressed concern over the continent’s underdeveloped manufacturing sector. While Africa has excelled in engineering and fabrication, manufactured materials account for 54% of the continent’s local content deficit.
He emphasised the need for Africa to produce its own oil and gas industry equipment, rather than relying on imports, which contribute to capital flight.
To improve local content, Mr. Halilu recommended that technology transfer agreements with international partners should prioritise skill acquisition and the development of industrial capacity, rather than exploitative arrangements. He pointed to successful global supply chains, such as Boeing and BMW, which leverage resources from multiple countries to optimise production.
“Boeing operates in over 60 countries, generating revenues higher than the GDP of some African nations. If African companies adopt a similar model, we could significantly increase job creation and economic output,” he said.
The Director also called for harmonised regulations across African nations to streamline business operations, arguing that inconsistent policies in countries like Nigeria and Ghana create confusion and hinder regional trade.
In other news, Samsung Heavy Industries Nigeria announced a $300 million investment in Nigeria’s maritime industry, citing the country’s strategic location as a key hub for global shipping.
As Africa looks to redefine its role in the global oil and gas industry, industry leaders at SAIPEC 2024 reiterated that regional collaboration, investment in manufacturing, and strategic partnerships are essential for unlocking the continent’s full potential.
