Shell has highlighted key strategies to enhance local content in Nigeria’s oil and gas industry, emphasising the importance of strategic partnerships, capacity building, and adherence to local content regulations. The company says measures will increase the value derived from the participation of indigenous businesses in the sector.
General manager, Nigeria content development at Shell Petroleum Development Company of Nigeria Limited (SPDC) Olanrewaju Olawuyi made this assertion during a panel session on “Local Content Private Sector” at the Sub-Saharan Africa International Petroleum Exhibition and Conference (SAIPEC) in Lagos.
Drawing insights from Shell’s operations in Nigeria, Mr Olawuyi stressed the need for indigenous companies to collaborate to deliver significant projects. “By awarding contracts worth $1.98 billion to Nigerian businesses in 2023, Shell has bolstered the capabilities of local firms, enabling them to become regional contractors,” he said.
He further highlighted the importance of capacity building to strengthen local expertise.
“At Shell, we have implemented projects like the Nigerian Diving School to enhance divers’ capacity in Nigeria, domestication of 3D printing technology, and research initiatives to develop synthetic base fluids for drilling. These efforts are part of our commitment to equipping suppliers with the skills and resources they need to thrive,” Olawuyi explained.
Compliance with local content policies remains a cornerstone of Shell’s strategy. According to Olawuyi, such measures not only benefit the local economy but also foster trust and collaboration with host communities.
“Shell has learnt that the local content race is not a sprint but a marathon. It makes a lot of business sense and creates long-term value,” Olawuyi noted. He added that as the energy sector evolves, local content strategies must transition from mere compliance to value-driven partnerships, technology integration, and sustainable economic impact.
He concluded by stating that companies that prioritize innovation, digital transformation, and workforce development will lead the way in shaping the next phase of local content growth.
