Shell Companies in Nigeria (SCiN) have expressed commitment to local content development in Nigeria.
In its latest report obtained by The Daily, www.thedaily-ng.com, the company disclosed that it is not only committed to committed to the development of the Nigerian content but also the sustainable development of the Niger Delta and Nigeria as a whole.
The company stated that: ‘’Developing the local skills, talent and contracting capacity on which the Nigerian oil and gas industry depends, starts with the people working at Shell Companies in Nigeria. At the end of December 2016, more than 3,400 people were employed at Shell Companies in Nigeria, 96% of whom are Nigerians.
‘’This is reflected throughout the local value chain, with Shell Companies in Nigeria awarding 94% of their total number of contracts to Nigerian companies in 2016, the total value amounting to $0.74 billion.
‘’Nigerian local content development is not a discretionary consideration. Legislation sets rules and regulations governing local content requirement and sets targets for the level of Nigerian content that must be achieved in various categories. These targets can prove challenging in a technical industry in which skills and capacity usually take time to acquire.
‘’Shell Companies in Nigeria have a commitment to local content, which is not hinged on legislation alone but also aligns with our business strategy. We believe that we best serve our customers and maximise our competitiveness when we help to develop local capacity. We strive to harmonise this with our need for competition, quality and delivery.
Referring to asset ownership and other issues, the report stated that: ‘’Nigerian ownership of key assets such as rigs, helicopters and marine vessels is a focus for many of our successful local content initiatives. We have provided technical and financial support to companies across a range of sectors including transportation, manufacturing and research and development.
‘’Lack of access to capital hinders many Nigerian companies from being able to compete and execute contracts effectively. In order to support local contractors, the Shell Contractor Funding initiative was expanded with eight participating banks committing about $2.2 billion to fund contract execution by Nigerian companies working for Shell Companies in Nigeria.
‘’In December 2016, the programme was among the few initiatives recognised and approved by the Organisation for Economic Cooperation and Development (OECD) plenary session on “Shared Value creation and local content” included in the compendium of global best practices. Since the programme’s creation in 2011, loans worth approximately $1 billion have been awarded to 220 small and mediumsized Nigerian enterprises with no recorded defaults on the loans. It was also recognised by the IPIECA Local Content Guideline released in 2016 among the best practices of the industry. IPIECA is a global oil and gas industry association for environmental and social issues.’’