Nigeria: Ewanehi - Nigerian Content Law Has Catalysed Local Capacity Development

27 January 2025

Solomon Ewanehi is the Group Managing Director of the award-winning Port Harcourt-based Solewant Group, an African success story with a reputation of 25 years in steel pipe production, provision of advanced coating solutions and pipeline construction for Africa's oil and gas sector. He speaks to Ejiofor Alike on how the Nigerian Content Law equipped local companies to compete on a global scale

Could you please explain the impacts of Nigerian Content law on your operation?

Certainly, the Nigerian Content Law, particularly the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, has had profound and transformative impacts on our operations at Solewant Group. As a leading indigenous player in the oil and gas sector, we have been both beneficiaries and advocates of this law.

First and foremost, the NOGICD Act has been a catalyst for local capacity development, which aligns perfectly with our mission to promote indigenous participation. The law mandates the prioritisation of local companies for contracts, goods, and services, which has significantly increased the demand for our pipeline coating solutions, fabrication services, and industrial innovations. This has given us the opportunity to showcase our world-class capabilities and establish ourselves as a reliable partner to international oil companies (IOCs) and national oil companies (NOCs).

Secondly, the law has driven investments in infrastructure and technology at Solewant Group. To meet the stringent requirements set forth by the NOGICD Act, we have invested heavily in our state-of-the-art Solewant Industrial Area in Alode, Eleme, Onne, Rivers State. This facility, equipped with advanced pipeline coating technologies and fabrication capabilities, stands as a testament to the value of local content in enhancing industrial capacity.

The act has also had a significant impact on job creation and skills development. Through our Solewant Energy Training Institute (SETI), we are not only equipping Nigerians with the skills to thrive in the energy sector but also contributing to reducing unemployment and brain drain. We are proud to say that our workforce is over 90% Nigerian, a direct result of the enabling environment created by the local content law.

Additionally, the law has fostered a collaborative environment between indigenous companies and foreign partners. For instance, our partnerships with international technology providers for coating materials and solutions are a direct result of the NOGICD Act's framework for technology transfer. This has allowed us to integrate global best practices while maintaining our commitment to local content.

That said, the law also comes with challenges, particularly the need for constant upgrades in compliance with its evolving requirements. However, we view these challenges as opportunities to innovate and adapt, ensuring that Solewant Group remains at the forefront of the industry.

In summary, the Nigerian Content Law has not only enhanced our operations but has also reinforced our role as a key player in Nigeria's energy sector. It has provided us with the platform to demonstrate that local companies can compete on a global scale while driving sustainable economic growth and industrial development in the country.

Is your company getting the required support from the NCDMB, NNPC Limited and NUPRC as it should?

Absolutely, we have received significant support from key stakeholders like the Nigerian Content Development and Monitoring Board (NCDMB), NNPC Limited, and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). Their backing has been instrumental in our growth and ability to meet industry demands effectively.

Starting with the NCDMB, they have been pivotal in driving local content enforcement, which aligns perfectly with Solewant Group's mission. We are a product of Nigeria content. Through their capacity-building initiatives, research and development support, and encouragement for local companies to take on high-value projects, the NCDMB has empowered indigenous businesses like ours. For instance, their support in creating a conducive regulatory environment has allowed us to expand our state-of-the-art industrial facility in Onne and strengthen our local workforce. Their collaborative approach ensures that companies like Solewant are well-positioned to deliver world-class solutions while adhering to local content mandates. In year 2022, NCDMB declared Solewant Group as champion of local content.

From the NNPC Limited, we've seen strong advocacy for partnerships with indigenous companies. Their support for local content suppliers in pipeline coating, fabrication, and maintenance projects has been a game changer. NNPC's shift towards becoming a commercially driven entity has also opened up new opportunities for partnerships, particularly in areas like gas infrastructure, which is critical for Nigeria's energy transition. We came into this business through the support of NNPC.

The NUPRC has equally played a significant role, especially in streamlining regulatory compliance processes. They have provided clear frameworks for standards and best practices, ensuring that companies like ours can operate with confidence and clarity. Their focus on creating a level playing field for indigenous businesses has enhanced our ability to participate in upstream projects, enabling us to showcase our expertise in pipeline protection, coating, and fabrication.

However, like any collaborative effort, there's always room for improvement. We would appreciate further collaboration in areas such as policy simplification, accelerated project approvals, and direct investment in R&D to foster greater innovation. More targeted support in these areas would help companies like Solewant contribute even more significantly to Nigeria's energy sector.

In summary, the combined support from these institutions has been invaluable in our journey, and we look forward to deepening these partnerships. Together, we can achieve the shared goal of a robust and sustainable energy sector driven by local capacity and innovation.

As a leading pipe and metals fabrication and coating solution company in Africa, you have won numerous awards, including the Indigenous African Oil & Gas Contractor of the Year Award at Offshore Africa Magazine's Africa Energy Summit in Accra last June. How have these awards encouraged you to improve on your services?

Winning the Indigenous African Oil & Gas Contractor of the Year Award at the Offshore Africa Magazine's Africa Energy Summit is truly an honor for Solewant Group. However, while the recognition is deeply gratifying, it also represents a significant milestone in our 24-year journey of growth, resilience, and commitment to excellence. It is not just a celebration of what we've achieved but a reminder of the path we've traveled and the path that still lies ahead.

Over the past two decades, we have faced numerous challenges, from market volatility and geopolitical shifts to the ever-evolving demands of the oil and gas sector. Yet, through each of these challenges, we have remained steadfast in our core mission: to provide innovative and reliable pipe and metals fabrication and coating solutions to our clients across Africa and beyond. These awards have only deepened our resolve to continuously improve our services, because they hold us accountable to the high standards, we've set for ourselves and our industry.

We understand that in a highly competitive field, complacency is the enemy of growth. Our commitment to continuous improvement is reflected in the investments we've made in state-of-the-art technology, as well as in the training and development of our people. Over the years, we have built a reputation for excellence, not by resting on our laurels, but by constantly assessing and enhancing our service delivery. The awards, therefore, act as both a reward for our past accomplishments and a powerful motivation to do more.

At Solewant Group, our focus is not only on enhancing the quality of our services but also on contributing to the sustainable development of Africa's energy sector. With these awards, we are more determined than ever to push the boundaries of innovation, adopt cutting-edge technologies, and enhance operational efficiency. We believe that this approach will not only strengthen our position in the market but also allow us to support the ongoing growth of the energy industry on the continent.

In all our endeavors, we remain deeply committed to fostering long-term relationships with our clients, ensuring that they receive the highest value from our solutions. These awards serve as a testament to the trust and confidence that our clients have placed in us over the years, and we aim to repay that trust with continued dedication, transparency, and superior service.

Looking ahead, we are excited about the future, particularly as we leverage the knowledge, skills, and experience accumulated over the past 24 years. These accolades have reaffirmed our belief in the power of teamwork, the importance of visionary leadership, and the value of integrity in all our operations. As we continue to lead the way in Africa's energy sector, we will remain focused on creating a lasting impact that transcends the immediate rewards, for we know that true success is measured by the positive change we bring to the industry and the communities we serve.

QUOTES

"From the NNPC Limited, we've seen strong advocacy for partnerships with indigenous companies. Their support for local content suppliers in pipeline coating, fabrication, and maintenance projects has been a game changer. NNPC's shift towards becoming a commercially driven entity has also opened up new opportunities for partnerships, particularly in areas like gas infrastructure, which is critical for Nigeria's energy transition. We came into this business through the support of NNPC."

"The NUPRC has equally played a significant role, especially in streamlining regulatory compliance processes. They have provided clear frameworks for standards and best practices, ensuring that companies like ours can operate with confidence and clarity. Their focus on creating a level playing field for indigenous businesses has enhanced our ability to participate in upstream projects, enabling us to showcase our expertise in pipeline protection, coating, and fabrication."

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