Lack of skills hinders Nigeria’s oil industry’s growth

Nigeria’s energy sector is grappling with growing skills shortages that threaten to hinder its efforts to grow oil production.

It is also an affront on the country’s position as one of Africa’s leading oil producers, according to findings by BusinessDay.

Over the past decade, major International Oil Companies (IOCs) such as Shell, ExxonMobil, and Chevron have reduced their investments in Nigeria, opting to focus on more profitable ventures, especially in offshore assets, gas and renewable energy.
The pullback by IOCs has forced Nigerian oil and gas companies to take over operations once handled by these global giants.
However, the transition has not been smooth. While the local firms have made strides in increasing their stake in the industry, they are grappling with a severe shortage of skilled professionals needed to manage complex projects and sustain production levels.

“In the last two decades, nothing has been done in terms of renewal of the skills that you need to run an oil and gas industry like ours,” a senior oil executive who pleaded anonymity told BusinessDay.

He added, “This shortage is not just a matter of headcount; it poses a significant risk to the ongoing development and sustainability of the local oil and gas industry.”

BusinessDay findings have shown that many of the professionals who once worked with IOCs are either retiring or migrating abroad in search of better opportunities.

The result is a scarcity of experienced engineers, geoscientists, technicians, and project managers – essential roles that are critical to sustaining the country’s oil production levels
Local firms now find themselves in a race to recruit and train professionals who can manage advanced technology and complex operations.

“Nigeria faces a significant manpower challenge. Graduates have a competency gap that’s needed by the energy sector, thus slowing down their integration into the workforce and hindering job creation,” Bolaji Ogundare, group executive director of Newcross Group and Pan Ocean Oil Corporation (Nigeria), said in a discussion with BusinessDay.

“To address this, the government needs to incentivise companies to invest in education. We need to give tax breaks to companies for funding university curriculum and support hiring, training and scholarships which can improve the quality of graduates,” Ogundare noted.

source: businessday.ng

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