Local Content Development, Fast Becoming A Strategic Management Issue In Africa

OVH Energy, a leading indigenous petroleum marketing company, behind the Oando retail brand in Nigeria, remains committed to local content development through capacity building. In this exclusive interview with African Leadership Magazine UK, the Chief Executive Officer, Huub Stokman, he talks about the company’s strategy towards plugging skills gap in the auto industry in Nigeria through trainings and retraining. He also talks about the company’s recent acquisition by the NNPC and other important issues. Excerpts: How much does it mean to you to receive the Local Content Development Champion Award, knowing that it duly recognizes your efforts towards developing the oil and gas sector?

I would like to first thank the organizers of this award ceremony and really appreciate their effort towards recognizing the role NNPC Retail Limited plays in the oil and gas sector, and the Local Content Development Champion Award means a lot to us. We will continue to stay committed to the development of the oil and gas sector. We consider the acknowledgment to be proof that we are a major influence in the downstream industry through the efforts of our local content. We believe that local content is the driver of economic activity and development in every thriving industry. We also see the award as a motivation to step up our efforts in Nigeria's downstream industry by reaffirming our dedication to providing our customers with great services on a constant basis.

You have made remarkable strides in your entrepreneurial journey with notable achievements along the way. Kindly take us through the hoops to see your path to get to where you are today.

We at OVH Energy Marketing now NNPC Retail Limited consider it an honor to be recognized as one of the companies that have made outstanding advancements in the entrepreneurial field. We have made significant investments in several areas, which has led to the accomplishments we see today. The Oleum Academy's mechanics training is one of the actions we have taken. In its sixth season, Oleum Academy, an OVH Energy program created to close the skills gap among Nigerian auto mechanics, trained over 5000 mechanics over the years Recent news shows that the NNPC has acquired all OVH energy retail outlets as owner-operator of the Oando-branded service stations across the country. What does this mean for the future of your company?

The acquisition by NNPC Ltd comes at a critical time in the Nigerian energy sector given the implementation of the new petroleum laws, the increasing demand for petroleum products, and particularly the deliberate efforts to improve the supply and consumption of natural gas in support of energy transition goals. By merging NNPC Limited with OVH Energy Marketing, we hope to ensure supply security and efficiency whilst providing superior customer service. An enlarged group will result in significantly more growth opportunities for talents across the merged entity, providing avenues to build, retrain, and strengthen skillsets. To improve the growth of the oil and gas industry in Africa, we are combining the effectiveness of the OVH downstream competence with the exposure provided by NNPC Retail Limited (NRL). The merger is a strategic move which aims to create the largest downstream Oil & Gas company in Nigeria and West Africa and ensure quality service delivery with the ultimate aim to strengthen Nigeriaʼs downstream value chain. The merger will allow NRL, driven by operational excellence and best-in-class management, to operate model service outlets offering premium petroleum products and allied services to customers in line with global standards. Successful integration will result in accelerated energy solutions in Nigeria and the West African region, with the end-goal of achieving sustainable energy security. NRL aims to become the leader of choice in the downstream and energy sector, driven by operational excellence, best-in-class management, and customer satisfaction. You clearly have a passion for local development. What notable local content development activities have you carried out across the downstream sector in which you operate?

In Africa, Local content development is fast becoming a strategic management issue for multinational companies with significant efficiency and profitability implications. As a growth driven company, we have also leveraged diverse local content development activities to improve the downstream sector. Such activities include trainings and seminars for talents who desire to hone their skills, mandatory online courses for all members of staff as well as recognition and reward for exceptional performances. You have a reach across West Africa, with a presence in Togo and intention to expand elsewhere. How much local content development practices do you execute there as well and how has this impacted the growth of your business?

Our strong presence in West Africa is because of local development practices. We always promote the best local talents. We have also practiced the local content development activities that worked in Nigeria in these countries. We believe it will not only serve as a contribution to the Nations GDP but also serve as an initiative to promote creative approaches to local value creation to stimulate our local economies How much invested are you in CSR as a person and company, and what contributions have you made to the development of the different communities you carry out business in?

AS a responsible corporate citizen, we support Corporate Social Responsibility (CSR) through various sustainability initiatives like Evolve, where we donate education materials to the girl child in public schools. Also, earlier in the year, OVH Energy Marketing, through its University Scholarship Scheme, offered scholarships to students in universities within our community for the 2020/2021 academic calendar. This initiative reinforces our commitment to ensuring inclusive and equitable quality education and promoting lifelong learning opportunities. The scheme aligns with the United Nationsʼ Sustainable. Development Goals. We also unveiled the Mechanic Oleum Reseller Enterprise Initiative. This program aims to assist mechanics to develop more effective, longlasting companies by improving their entrepreneurial abilities, ensuring product availability, deepening usage, and growing their customer base

The merger is a strategic move which aims to create the largest downstream Oil & Gas company in Nigeria and West Africa and ensure quality service delivery with the ultimate aim to strengthen Nigeriaʼs downstream value chain.