The Petroleum Technology Association of Nigeria (PETAN) has urged African governments and industry players to strengthen collaboration between public and private suppliers, describing it as the most critical driver of sustainable local content growth across the continent.
Delivering a paper at the 4th Conference and Exhibition on Local Content in the African Oil and Gas Industry (CECLA) in Kintélé, Brazzaville, the Association’s Executive Secretary, Engr. Kevin Nwanze, who represented the PETAN Chairman, Engineer Wole Ogunsanya, said Nigeria’s experience shows what can be achieved when regulation, industry commitment and partnership work together.
He explained that the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, implemented by the Nigerian Content Development and Monitoring Board (NCDMB), has played a defining role in raising local participation in the sector.
According to him, in-country value retention in Nigeria has grown from five per cent in 2010 to 56 per cent in 2024, a feat he described as clear evidence that structured collaboration delivers measurable results.
Nwanze, who spoke on the theme: “Sustaining Public/Private Suppliers Collaboration in the African Oil and Gas Industry,” warned that the growing complexity of oil and gas projects makes cooperation indispensable.
“Collaboration is no longer a ‘nice-to-have’ but a ‘must-have’ for sustainable local content in Africa’s oil and gas industry,” he said.
He stressed that effective collaboration requires a balance between partnership, competition and regulation, noting that regulation remains the foundation upon which successful supplier relationships are built.
He pointed out that the NOGICD Act has served as the backbone of Nigeria’s gains, ensuring fairness, transparency and consistent growth in local participation.
Highlighting the realities facing African oil and gas markets, Nwanze noted that large-scale projects depend on the financial and technical capacity of international companies as well as the contextual understanding and community experience of local suppliers. Without such cooperation, he warned, delays, cost overruns and limited benefits for host countries are inevitable.
He also drew attention to the challenges hindering collaboration across the continent, citing weak policy environments, financing difficulties, trust deficits, capacity gaps and inconsistent operational standards as key constraints.
He urged African governments to go beyond setting local content targets and instead build enabling environments that open access to finance and simplify procurement processes.
Calling for greater transparency, he advocated open procurement systems, public disclosure of contract awards and strong oversight mechanisms, stating that these are essential for trust-driven and sustainable partnerships.
On technology transfer, he emphasised that progress depends on the commitment of private companies to support capacity development among local suppliers. He referenced some of Nigeria’s successful models, such as the Egina FPSO engineering consortium, the EnServ–Schlumberger alliance and the Kwale Gas Gathering Hub, saying they were made possible by the regulatory structure provided by the NOGICD Act.
Looking to the future, Nwanze said Africa must channel more investment into skills, innovation and emerging segments such as renewable energy integration, carbon capture, utilisation and storage (CCUS), and decommissioning. These areas, he noted, will be central to the next phase of industry transformation.
Nwanze urged African policymakers to take a closer look at Nigeria’s experience, insisting that the continent can achieve similar outcomes if the right regulatory foundations are put in place. He concluded that sustainable progress requires empowered implementing agencies and regulations that are strong, clear and workable.
