In the early 2000s, the Federal Government of Nigeria introduced the oil and gas local content development (LCD) policy so as to develop in-country capacity and indigenous capabilities and participation. Yet, the literature on Nigeria’s LCD appraisal remains scant. Indeed, to the author’s knowledge, to date, no study has investigated the extent to which the policy has fostered indigenised employment and job creation. This PhD study aims to fill this gap by undertaking an initial attempt to appraise the extent to which the Nigerian LCD policy has had an impact on indigenous employment and job creation in the oil and gas industry. To this end, we adopt a stakeholder theory evaluative framework articulated around six criteria: i) value added; (ii) dynamism of HE curriculum vs industry demands; (iii) suitability and employability of graduates; (iv) ‘payment’ for LCD; (v) emergence of in-country entrepreneurs; (vi) domiciliation vs indigenisation. Following the identification and categorisation of the main stakeholders in the oil and gas industry (Government; International Oil and gas Companies; Indigenous operators; Multinational oil and gas service providers; Indigenous oil and gas service providers; EPC contractors and fabricators; and HE institutions), application of a full Social Network Analysis (SNA) and Actor Linkage Matrix (ALM) reveals that: • Most of the relationships present within the stakeholder network are uni- rather that bi-directional, with the latter being limited to the relationship between the government and International oil and gas companies (IOCs); • The IOCs emerge as the stakeholder group exhibiting global centrality within the network, indicating that this group pivotally determines the activities of the Nigerian oil and gas industry; • There exists a significant disjoint between HE institutions and other stakeholder groups within the network; • The ‘interconnectedness’ of the stakeholder network identified, as measured by the mean density index (59.5%), displays at best a moderate level of connectivity. Furthermore, evidence obtained by means of a mixed method inquiry approach that uses semi-structured interviews, documentary material and statistical data in relation to the criteria of the framework developed to evaluate the impact of the LCD policy on indigenous employment and job creation, points to the following findings: • Value added: Value has been added in various areas viz indigenous employment, contract and sub contract awards, domiciliation of OEM activities and international partnerships. However, considerable external support is still required thus making a case for extending the waiver window; • Dynamism of HE curriculum vs industry demands: Limited collaboration between academia and industry, hence HE curriculum is not in tandem with industry requirements (not fit for purpose); • Suitability and employability of graduates: Employees are lacking in core technical skills, but still generally suitable following additional training upon employment. Ascension to supervisory and managerial positions was mainly attributed to on-the-job experience acquired over time; • ‘Payment’ for LCD: This is a joint responsibility with all the stakeholders’ contribution to be seen as necessary yet singularly insufficient to pay for LCD. The government should realise that industry players are businesses which are profit driven and as such, be conscious of their responsibility to champion the cause of LCD as regulators; • Emergence of in-country’ entrepreneurs: LCD has led to the proliferation of indigenous oil and gas firms. Competitiveness and implementation of ISO standards is expected to resolve the issue of quality service and on-time delivery; • Domiciliation vs indigenisation: Both domiciliation and indigenisation of oil and gas services bear their usefulness in various respects. However, for domiciliation to work, basic amenities (power, water and access to good transportation) and security of lives and property should be put in place. Overall, these findings - which are obtained from the very first application of stakeholder analysis to LCD policy - make a significant contribution to scholars’ knowledge. Important implications and valuable recommendations for many stakeholders flow from the insights gained.
Lagoke, O
Supervisors: De Vita, Glauco ; Adesola, Sola
Department of Business and ManagementFaculty of Business
Year: 2014
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