Shell Companies in Nigeria, encompassing Shell Petroleum Development Company of Nigeria Limited (SPDC), Shell Nigeria Exploration and Production Company Limited (SNEPCo), and Shell Nigeria Gas, demonstrated a robust commitment to local content development in 2023 by awarding contracts worth $1.98 billion to Nigerian businesses. This represents a 3% increase compared to the $1.92 billion awarded in 2022, underscoring Shell’s ongoing efforts to bolster indigenous participation in the nation’s oil and gas sector. This commitment aligns with the broader national objective of maximizing Nigerian involvement in the industry, fostering economic growth, and developing local expertise. This investment in local businesses is a crucial element of Shell’s operational strategy in Nigeria and showcases their dedication to sustainable development within the country.
The announcement of these contract awards coincided with Shell’s active participation in the 13th Practical Nigerian Content Forum held in Yenagoa, Bayelsa State. This significant event, themed “Deepening the Next Frontier for Nigerian Content Implementation,” brought together over 700 stakeholders from the oil and gas sector, including operators, service providers, regulators, and industry experts. The forum, hosted by the Nigerian Content Development and Monitoring Board (NCDMB), provides a platform for assessing the progress made under the Nigerian Oil and Gas Industry Content Development Act of 2010, identifying challenges, and charting the future course for local content development. Shell’s presence at the forum and the announcement of their contract awards served as a powerful testament to their commitment to the principles enshrined in the Act.
Shell’s commitment to local content development extends beyond contract awards and encompasses substantial investments in human capital development. The company has implemented several impactful projects under the Human Capital Development Fund, including the construction and equipping of a learning center and digital library at the Niger Delta University and the establishment of an Information Technology Hub at the Federal University of Technology. These projects, undertaken in collaboration with SPDC Joint Venture partners – Nigerian National Petroleum Company Limited (NNPC), TotalEnergies, and Nigeria Agip Oil Company Limited – aim to enhance the quality of education and research in critical areas relevant to the oil and gas industry. By investing in these educational initiatives, Shell contributes to building a skilled Nigerian workforce capable of driving innovation and growth in the sector.
Further demonstrating their commitment to human capital development, Shell has invested in several other key projects. These include the Geosciences Centre of Excellence at the University of Lagos, which provides advanced training and research facilities for geoscientists; the Nigeria Diving School, aimed at developing local diving expertise to reduce reliance on foreign professionals; and funding for ongoing research at the University of Ibadan focused on developing environmentally friendly synthetic-based drilling fluids. These targeted investments address specific skill gaps within the Nigerian oil and gas industry and contribute to building a robust and self-reliant local workforce.
In addition to infrastructure and research initiatives, Shell actively supports the development of indigenous manpower through scholarship programs. Since 2016, Shell companies in Nigeria have awarded over 3,772 undergraduate scholarships and 109 postgraduate scholarships specifically for students from the Niger Delta region. These scholarships provide opportunities for talented Nigerian students to pursue higher education in relevant fields, ensuring a steady pipeline of skilled professionals for the oil and gas industry. The high employability rate of scholarship recipients, with over 98% securing employment within a year of graduation, underscores the effectiveness of Shell’s scholarship program in equipping graduates with the necessary skills and knowledge for successful careers.
Shell’s commitment to Nigerian content is not merely a matter of compliance but a strategic imperative. By empowering local businesses, investing in human capital, and fostering a culture of local participation, Shell contributes to the sustainable development of the Nigerian oil and gas industry. The company recognizes that a strong local supply chain and a well-trained workforce are essential for long-term success and operational efficiency. Moreover, by actively supporting local communities and promoting economic growth, Shell reinforces its commitment to being a responsible corporate citizen in Nigeria, fostering mutually beneficial relationships with its stakeholders and contributing to the nation’s overall prosperity. This multifaceted approach to local content development underscores Shell’s dedication to building a sustainable and inclusive future for the Nigerian oil and gas industry.
