The Petroleum Technology Association of Nigeria (PETAN) has called for deeper, more strategic public–private supplier collaboration across Africa’s oil and gas sector, stressing that the future of energy development on the continent depends on unified action.
PETAN highlighted Nigeria’s landmark achievements under the NOGICD Act—implemented by the Nigerian Content Development and Monitoring Board (NCDMB)—which has raised in-country value retention and local manufacturing from 5% in 2010 to 56% in 2024. The association believes this success offers a proven model that other African countries can replicate.
Delivering PETAN’s position at the 4th Conference and Exhibition on Local Content in the African Oil and Gas Industry (CECLA), organised by APPO in Kintélé, Brazzaville, Congo, Engr. Kevin Nwanze, Executive Secretary, who represented PETAN Chairman, Engr. Wole Ogunsanya, underscored the theme, “Sustaining Public/Private Suppliers Collaboration in the African Oil and Gas Industry.”
He emphasized that modern oil and gas operations have become too complex for siloed approaches.
“Collaboration is no longer a ‘nice-to-have’ but a ‘must-have’ for sustainable local content in Africa’s oil and gas industry.”
Nwanze stressed that effective partnerships must balance cooperation, healthy competition, and strong regulation—adding that regulation is the anchor of any successful collaboration framework.
He noted that Nigeria’s progress is rooted in the solid regulatory foundation provided by the NOGICD Act of 2010, which he described as the engine driving fairness, transparency, and measurable local content growth.
“Nigeria’s in-country value retention has grown from 5% in 2010 to 56% in 2024—clear evidence that structured collaboration works.”
According to him, the complex nature of oil and gas projects means African countries need both the financial and technical strength of international firms and the contextual knowledge and community reach of indigenous suppliers.
Without collaboration, he warned, nations risk project delays, cost overruns, and minimal socio-economic benefits to host communities.
He, however, identified persistent barriers to collaboration across Africa—including weak policy environments, limited access to finance, trust issues, capacity gaps, and inconsistent operational standards.
“Weak policies, financing gaps, trust deficits, and capacity limitations remain the biggest obstacles to effective collaboration across Africa.”
Nwanze urged governments to evolve from merely setting local content targets to building fully enabling ecosystems that support suppliers and investors.
“African governments must move beyond setting targets and focus on creating enabling environments that simplify procurement and expand access to finance.”
Reiterating the role of transparency, he called for open procurement processes, public disclosure of contract awards, and robust oversight mechanisms.
“Open procurement, contract publication, and independent oversight are non-negotiable if we want sustainable and trust-driven collaboration.”
On technology transfer, he stressed that private sector commitment remains essential.
“Technology transfer only succeeds when private companies make firm, intentional commitments to support local suppliers through the change-management process.”
Nwanze pointed to Nigeria’s success stories—including the Egina FPSO topsides engineering consortium, the EnServ–Schlumberger alliance, and the Kwale Gas Gathering (KGG) Hub—as examples of what is possible under a strong regulatory backbone.
Looking to the future, he emphasized the need for Africa to build enduring technical capabilities and diversify into emerging energy domains.
“True sustainability comes from building lasting capabilities, not just transferring jobs. Africa must invest in skills, innovation, and sector diversification.”
He highlighted emerging opportunities in renewable energy integration, carbon capture, utilisation and storage (CCUS), and the decommissioning of oil and gas assets, noting that collaboration will be essential as Africa transitions into these new areas.
“Skills in renewable integration, carbon capture, and decommissioning will define Africa’s next decade—and collaboration will be critical.”
Nwanze again urged African policymakers to take lessons from Nigeria’s journey.
“What has worked in Nigeria can work elsewhere. The NOGICD model is ripe for adaptation by other African jurisdictions seeking real local content growth.”
He concluded by stressing that sustainable progress will remain elusive without robust regulation and empowered implementing institutions.
“There can be no sustainable collaboration without strong, workable regulations and an empowered, independent local content implementing body.”
I never thought about it that way before. Great insight!
Keep educating and inspiring others with posts like this.
You really know how to connect with your readers.