Strategies for Improving Local Content Development in Nigeria Oil and Gas Industry

Local content development is fast becoming a strategic management issue for multinational extractive companies in Africa with significant efficiency and profitability 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 effective strategies for increasing local content in their processes and products. Grounded in the local content development framework and mediated impact model of supplier development, 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 in their processes and products. The participants comprised eight supply chain managers and business 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 semistructured interviews and secondary documents such as annual plans and performance reports. Thematic analysis was used to analyze the data. Three themes emerged: business value drivers for local content development, overarching local content development strategies, and monitoring and measurement of local content development. A key recommendation is for supply chain managers to document clear and concise business value drivers for selecting and implementing local content development strategies. The implications for positive social change include the possibility for increased job creation that could result in a significant reduction in the unemployment rate and concomitant youth restiveness in the Nigeria Niger Delta region