Towards Boosting Local Content In Oil Industry

If there is anything that has accentuated the policy directives and objective principles of the Nigerian Content Law 2010, driven by   Yenagoa-based Nigerian Content Development and Monitoring Board (NCDMB), it is perhaps, the introduction of the Niger Delta Overseas Scholarship Schemes by some major players aimed at building capacity and developing local manpower to fill existing vacancies and subsequently take over leadership roles in the oil and gas industry.

One of such players is Shell Petroleum Development Company of Nigeria (SPDC). Another player that has made a significant mark in the industry is the Petroleum Technology Development Fund (PTDF), a government agency set up to drive the application of modern technology and innovative thinking in transforming the potentials in the oil and gas industry. There are also quite a number of others striving to make a difference in the industry through in-country capacity development initiatives, including the Niger Delta Development Commission (NDDC), another government agency created to drive the sustainable development agenda of the region, TOTAL Upstream Nigeria Limited (TUPNL), Nigerian Agip Oil Company (NAOC), ExxonMobil Nigeria Limited (EMNL), and Chevron Nigeria Limited (CNL), with specific local scholarship programmes targeted at prospective candidates from host communities.

One thing is common among these schemes: there are aimed at building the capacity of the local youth and preparing them to take over available leadership opportunities in the oil and gas companies operating in the Niger Delta. From the post-primary to the university schemes, the policy objective is the same.

For all these, Executive Secretary, NCDMB, Ernest Nwapa, must be a happy man. Why? The whole idea is premised on developing local capacity and capability that would swiftly integrate the natural owners of the resources with the industry in such a way that they gradually become major controllers of the wealth in their land. This obviously meets NCDMB’s mandate to systematically enhance the ability of indigenous folks to participate more actively in exploring and maximising the benefits of the oil and gas resources from the region.

But that is not just why Nwapa must be a happy man. He is a happy man because the wider picture is becoming increasingly clearer, with graduates of the novel post-graduate schemes returning, and gainfully taking over leadership opportunities in the oil and gas companies. This is the reason why he is a happy man! And perhaps, Nwapa is not alone. He is joined by a legion of locals from the region who are gladdened by the development, even though, belatedly. But whether belated or timely and apt, the fact remains that the Niger Delta is beginning to get it right.

Since the first geological and geophysical surveys were conducted across selected areas in the region in 1937, and first exploration well in 1951 at Iho, Imo State, with first successful production well in Oloibiri, Bayelsa State in 1956, the people have been crying blue murder, especially in the areas of employment and contract opportunities in the industry. In fact, from the 1930s to late 1990s, employment of people from the region was difficult for a number of reasons: the major oil and gas companies had their headquarters outside the region, particularly in Lagos. The companies also advertised for new job opportunities in newspapers based in Lagos. And to worsen issues, they further conducted their recruitment exercises in Lagos, with people from other regions managing the process, in most cases.

This scenario left suitably qualified applicants from the region at disadvantaged position. Firstly, those in charge of the recruitment processes were not from the Niger Delta, and therefore, were not in any way obligated to grant applicants from the region any special considerations. Secondly, only very few Niger Delta indigenes living in the region saw such publications. Thirdly, most of those who managed to apply and were invited for interviews in Lagos could not afford to attend, meet the interview sessions due mainly to the distance or even compete favuorably. Fourthly, political influence played a significant role in alienating Niger Deltans from the oil and gas industry, as those wielding power at the centre dictated the employment criteria and recruitment results in the critical industry. These and many others were the factors that conspired to exclude competent Niger Deltans from participating in the industry.

But with sustained agitation of the region, either peacefully or violently, a paradigm shift began to emerge with the directive that all oil and gas companies with operations in the Niger Delta must relocate their headquarters to the region. And to give vent to this policy, the Nigerian, albeit, local content policy was introduced to compel the companies to give priority to local manpower in both employment and contracts.

With the companies’ head offices relocated, their recruitment centres have been brought closer to the deprived but qualified candidates from the region. Besides, the newspapers from the region are also being used as channels for advertising job vacancies in the industry. Again, the Nigerian Content Law has further created window for preferences to job applicants and contract seekers from the region. In addition, special programmes aimed at attracting more indigenous manpower into the industry, such as scholarships, skills acquisition, and capacity and capability enhancement schemes, among others, are being holistically implemented.

Indeed, more important here is the variety of scholarships specifically designed for students from hitherto neglected communities in the region. But of major significance in this quest is the policy to train another cadre of graduates in the oil and gas-related engineering fields at Master’s level in overseas universities to fast-track the inclusion of local folks in top management leadership positions in the industry.

One of the schemes is the SPDC Niger Delta Post-Graduate Overseas Scholarship Scheme introduced in 2010 to sponsor 10 graduate students from the region to three top-level universities in the United Kingdom. This scheme has now started yielding positive dividends with the first batch of 10 students returning to Nigeria with breathe-taking grades. Today, they have been gainfully employed into leadership positions in Shell and some other major oil and gas companies in the region. In fact, four of them are now Shell staff while the remaining six have been engaged by other major and servicing companies. This is one of the aims of the various scholarship schemes by governments, corporate bodies and even well-meaning individuals in the Niger Delta!

Hitherto, the oil and gas companies had complained, correctly or spuriously, that most applicants from the region for job placements do not possess the technical competences and requisite qualifications to fill such vacancies. They argued, shamelessly too, that graduates from the region lack academic knowledge of the core sciences, especially oil and gas-related engineering fields and were inexperienced to undertake demanding jobs in the industry. For this reason, they had continued to annoyingly saturate the industry with graduates from other regions at the detriment of young graduates from the Niger Delta.

But with religious implementation of the Nigerian Content Law, the companies, particularly Shell, are beginning to look inward and train young graduates from host communities to acquire the level of competences required in the industry.  And the SPDC Managing Director, Mutiu Sunmonu said this much when he treated the pioneer post-graduate scholars to a dinner in Port Harcourt.

According to him: “two years ago, I challenged the Community Content Team, to consider a scholarship scheme in core petroleum engineering disciplines. They did just that, and … the result of that challenge” has manifested today.  “I am sure that armed with degrees from these institutions, you are now ready to contribute to the development of your country,” he emphasised.

But four critical issues beg for explanation: First is the limited number of scholars allowed into the scheme. Second is the awareness of this scheme by engineering-related graduates from the three catchment states of Bayelsa, Delta and Rivers. Third is the level-playing selection criteria and transparency of the process. Four is the equal opportunity, access to resources and wide ranging challenging environment provided scholars to enhance their performance and success rate. Of the 10 pioneer scholars, eight are from Delta, one each from Bayelsa and Rivers. However, out of the 10 in the second batch, six are from Delta, three from Rivers and one from Bayelsa.

A worrisome question that keeps resonating is: why do they have more beneficiaries from Delta instead of Rivers, where SPDC has its headquarters and recruitment centre or Bayelsa where NCDMB has its head office?  Is it a matter of more awareness of the scholarship opportunity in Delta than in Rivers and Bayelsa? Or is it that the company and its Community Content Team favour applicants from Delta? No!

They are more Rivers and Bayelsa indigenes than Deltans in the Community Content Team of Shell. The former general manager of Nigerian Content Development, Simbi Wabote, is from Bayelsa while the present General Manager, Igo Weli, is from Rivers. Even the Manager, Community Content, Amah Ikuru, is from Rivers. So, the issue of favouritism is out of the question. It is just that more Deltans apply for the scheme. Then the issue of number of scholars: although a pilot scheme, there is room for increase in the number of scholars accepted to accommodate other qualified candidates because Shell has the resources to pay their bills.

General Manager, NCD, Igo Weli, addressed some of these issues during an interface with the media, and added that Shell‘s  emphasis on engineering-related courses was to scale up opportunities for young Niger Deltans to populate leadership positions in the industry.

Even the scholars attest to the level of transparency and openness in the selection process. They also praised the challenging environment and the fact that lecturers in the UK universities give every student equal opportunity and treatment, and are ready even at odd hours to assist any student having difficulty with assigned course work. The abundance of resources is another factor which enhanced the performance of the scholars, and positioned them amongst the best.

Edafe Perekowei Edivri is one of the scholars, who was elected the first-ever black member of the Imperial College Student Council after he had been appointed the post-graduate coordinator, Society of Exploration Geophysicists (SEG). A bachelor of science (second class upper) degree holder in applied geophysics from Rivers State University of Science and Technology, Edafe, said, his “experience at Imperial College was challenging, yet inspiring and very rewarding.”

“I am from a very humble background, raised by a single parent… I consider myself most privileged to have benefited from the SPDC Niger Delta Post-Graduate Overseas Scholarship Scheme. At the time, I did dream of furthering my education but funds to actualize the dream were out of reach… However, SPDC helped in realizing my dream to a dimension much wider than I dreamt of by funding my study to Imperial College, London. This means that there is hope for eggheads, and as long as Shell continues to operate, and make profit in Nigeria, the future is bright,” the Isoko-born Edafe added.

Nani Oseoghene Aghogho, who had his first degree in civil engineering at the University of Benin, confessed that the academic environment in the University College, London,  was far better than what obtains in Nigeria, adding that the UK universities were centuries ahead in human and material resources, including ability to relate with students without any strings attached.

The stories of Edafe and Nani are the stories of the other eight scholars. Now they have joined leadership opportunities in the industry. But that is not all: they are helping to achieve the core objectives of the Nigerian Content Law 2010, while toning down the level of agitation of young graduates for opportunities in the industry that has reshaped not just the environment and ecosystems but also the socio-cultural lives of the communities.

Nelson Chukwudi