Shell Commits $2.2bn To Funding Nigeria’s Local Contractors

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Shell has pledged to provide $2.2 billion for funding local contractors in the Nigeria.

In its latest report, the company disclosed that in order to support local contractors, the Shell Contractor Funding initiative was expanded with eight participating banks committing about $2.2 billion to fund contract execution by Nigerian companies working for Shell Companies in Nigeria.

It indicated that in December 2016, the programme was among the few initiatives recognised and approved by the Organisation for Economic Cooperation and Development (OECD), plenary session on “Shared Value creation and local content” included in the compendium of global best practices.

The company stated that since the programme’s creation in 2011, loans worth approximately $1 billion have been awarded to 220 small and mediumsised Nigerian enterprises with no recorded defaults on the loans.

According to Shell, it was also recognised by the IPIECA Local Content Guideline released in 2016 among the best practices of the industry. IPIECA is a global oil and gas industry association for environmental and social issues.

It disclosed that among the key challenges in meeting local content targets is a scarcity of world-class research and development institutions in Nigeria and limited access to technology.

“Shell Companies in Nigeria, therefore, focus on building local capacity in key technical skills through training and educational support. For example, SPDC JV donated and commissioned an ultra-modern subsurface research centre at the University of Ibadan in March 2016. Shell Companies in Nigeria also run training programmes which include the award of post graduate scholarships in engineering and related fields.”

“Since its inception in 2010, 60 Niger Delta indigenes have benefited from the Shell Niger Delta Post Graduate scholarship programme. The programme was established to grow the Nigerian talent pipeline for the oil and gas industry through oversees scholarships at three UK universities (Imperial College London, University College London and University of Leeds) under a joint co-funding arrangement between the SPDC JV and the universities.”

“Through Shell Companies in Nigeria internship programmes, in collaboration with Petroleum Technology Association of Nigeria (PETAN), a total of 80 graduates have to date been equipped with experience for employment in the industry. Another batch of 30 graduates are currently undergoing the one-year internship programme.

Shell Nigeria Exploration and Production Company Limited (SNEPCo) donated facilities including a modern test laboratory to The Nigerian Institute of Welding in 2016 to promote welding technology in Nigeria,” it added.

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