Enhancing linkages of oil and gas industry in the Nigerian economy

dc.contributor.authorOyejide, Ademola T
dc.contributor.authorAdewuyi, Adeolu O
dc.date.accessioned2016-04-28T10:40:57Z
dc.date.available2016-04-28T10:40:57Z
dc.date.issued2011
dc.date.updated2016-04-28T07:59:23Z
dc.description.abstractThe dearth of linkages between the oil sector and the other sectors of the Nigerian economy is a critical developmental problem. Thus, the primary objective of this study is to examine the extent of the linkages that the oil sector has created with the rest of the Nigerian economy. Based on an earlier study which identified areas where local servicing firms in Nigeria have technological and employment potentials, this study covers three of such areas; Fabrication and construction; well-construction and completion, and Control system and ICT.? We have used both primary and secondary data and the methods of analysis are both descriptive and inferential. Survey results revealed that the degree of local sourcing of inputs (by local suppliers or servicing firms) in the Control system and ICT sub-sector is less than what obtains in the other sub-sectors. It was also found that linkage between first-tier and second-tier suppliers is weak, though information exchange is relatively higher. In the opinion of the servicing firms, their linkage with the oil sector is weak, but fair in the opinion of the oil firms.. Most servicing firms are national, but the control system and ICT sub-sector has highest multinational presence. Multinational firms dominate the oil sector, followed by joint venture, and few are national. Only public power supply was rated grossly inadequate by the servicing firms, On the average, about half of the servicing firms have agreements with foreign companies and local research centres. Import tariff and taxes are found to be the most inconsistent. Firms are involved in some innovations to survive stiff competition.? Control system and ICT sub-sector with higher multinational presence suffer less liquidity problems, but liquidity falls over time. High price of imported raw materials is the largest raw materials problem that affects servicing firms.? Based on a regression analysis, it was discovered that the MMCP drivers, other drivers and their interactions affect linkages. In all, availability of skilled labour (skill), policies (tax) and NSI stand out as the major drivers. Based on the above findings, some recommendations are made to the various stakeholders to promote linkages.en_ZA
dc.identifier.apacitationOyejide, A. T., & Adewuyi, A. O. (2011). <i>Enhancing linkages of oil and gas industry in the Nigerian economy</i> University of Cape Town ,Faculty of Humanities ,Centre for Social Science Research(CSSR). Retrieved from http://hdl.handle.net/11427/19290en_ZA
dc.identifier.chicagocitationOyejide, Ademola T, and Adeolu O Adewuyi <i>Enhancing linkages of oil and gas industry in the Nigerian economy.</i> University of Cape Town ,Faculty of Humanities ,Centre for Social Science Research(CSSR), 2011. http://hdl.handle.net/11427/19290en_ZA
dc.identifier.citationOyejide, T. A., & Adewuyi, A. O. (2011). Enhancing linkages of oil and gas industry in the Nigerian economy. pdf], MMCP.en_ZA
dc.identifier.ris TY - Working Paper AU - Oyejide, Ademola T AU - Adewuyi, Adeolu O AB - The dearth of linkages between the oil sector and the other sectors of the Nigerian economy is a critical developmental problem. Thus, the primary objective of this study is to examine the extent of the linkages that the oil sector has created with the rest of the Nigerian economy. Based on an earlier study which identified areas where local servicing firms in Nigeria have technological and employment potentials, this study covers three of such areas; Fabrication and construction; well-construction and completion, and Control system and ICT.? We have used both primary and secondary data and the methods of analysis are both descriptive and inferential. Survey results revealed that the degree of local sourcing of inputs (by local suppliers or servicing firms) in the Control system and ICT sub-sector is less than what obtains in the other sub-sectors. It was also found that linkage between first-tier and second-tier suppliers is weak, though information exchange is relatively higher. In the opinion of the servicing firms, their linkage with the oil sector is weak, but fair in the opinion of the oil firms.. Most servicing firms are national, but the control system and ICT sub-sector has highest multinational presence. Multinational firms dominate the oil sector, followed by joint venture, and few are national. Only public power supply was rated grossly inadequate by the servicing firms, On the average, about half of the servicing firms have agreements with foreign companies and local research centres. Import tariff and taxes are found to be the most inconsistent. Firms are involved in some innovations to survive stiff competition.? Control system and ICT sub-sector with higher multinational presence suffer less liquidity problems, but liquidity falls over time. High price of imported raw materials is the largest raw materials problem that affects servicing firms.? Based on a regression analysis, it was discovered that the MMCP drivers, other drivers and their interactions affect linkages. In all, availability of skilled labour (skill), policies (tax) and NSI stand out as the major drivers. Based on the above findings, some recommendations are made to the various stakeholders to promote linkages. DA - 2011 DB - OpenUCT DP - University of Cape Town LK - https://open.uct.ac.za PB - University of Cape Town PY - 2011 T1 - Enhancing linkages of oil and gas industry in the Nigerian economy TI - Enhancing linkages of oil and gas industry in the Nigerian economy UR - http://hdl.handle.net/11427/19290 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/19290
dc.identifier.vancouvercitationOyejide AT, Adewuyi AO. Enhancing linkages of oil and gas industry in the Nigerian economy. 2011 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/19290en_ZA
dc.languageengen_ZA
dc.publisher.departmentCentre for Social Science Research(CSSR)en_ZA
dc.publisher.facultyFaculty of Humanitiesen_ZA
dc.publisher.institutionUniversity of Cape Town
dc.titleEnhancing linkages of oil and gas industry in the Nigerian economyen_ZA
dc.typeWorking Paperen_ZA
uct.type.filetypeText
uct.type.filetypeImage
uct.type.publicationResearchen_ZA
uct.type.resourceResearch paperen_ZA
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