Strategies for improving local content development in Nigeria oil and gas industry

Abstract

Local content development is a strategic management issue for multinational extractive companies inAfrica with significant business implications. As local content statutory regulators aim to increase the average local content value in the Nigeria oil and gas industry from 26% in 2017 to 70% in 2027, supply chain managers need strategies to increase local content. The purpose of this qualitative multiple case study was to explore strategies supply chain managers in the multinational oil and gas companies in Nigeria use to increase local content. The participants comprised eight supply chain managers and leaders in multinational oil and gas companies and the Nigerian Content Development and Monitoring Board involved in local content development activities. Data were collected from semi structured interviews and secondary documents. Thematic analysis generated two themes: Business value drivers for local content development and overarching local content development strategies. A key recommendation is for supply chain managers to document business value drivers for implementing local content development strategies. Future research recommendations include review and ranking of strategies by using a quantitative methodology, and an assessment of the relationship between local content development expenditure and tangible business value created.