Lack of local contracts in oil, gas affecting economy – Stakeholders

A group of concerned stakeholders in the Nigerian oil and gas industry have raised the alarm that paucity of jobs for indigenous contractors in the oil and gas industry is responsible for the prevailing unemployment level in the country.

 The stakeholders said the trend is seriously affecting the economy, with a potential to subvert the hard work  of  the Buhari-led administration on the economic development of the country.

Speaking at an interactive forum with some newsmen on Sunday in Abuja, spokespersons of the group, Engr. Zaharadeen Ahmed and Mr Kingsley Okoro, stated that a lot of the oil multinationals like Shell, Chevron and Halliburton have placed a lot of their projects on hold for undisclosed reasons.  

They deplored the drought in engineering, procurement, construction and onshore commissioning contracts, which are key areas for indigenous/local contractors in the sector.  

“New contracts for tank fabrication, pipeline laying and other locally executed contracts which  formed the nucleus  of the local economy had not been negotiated or awarded for a while, while the once previously awarded but not concluded had been placed on hold,” they lamented

They further disclosed that local contractors had been unable to meet their financial and other commitments thereby leading to massive staff layoff in the sector, which is frustrating the development of the oil and gas sector of the economy and the oil-producing areas.

They appealed for the IOCs to create partnership with local contractors to develop programmes for indigenous contractors to train and keep engaging the oil and gas workforce of the country, especially at times of reduced contracts in the sector.

They appealed to the federal government for cooperation to ensure availability of jobs for the local contractors, especially those that had demonstrated competence in handling challenging jobs.

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