Chevron spends $2.5bn on Nigerian local content initiative
Chevron Nigeria Limited (CNL) said it spent $2.5 billion on local content development in Nigeria’s oil and gas sector, representing 65 per cent of the total Nigerian goods and services expenditures for the year.
Chevron in its 2016 Corporate Responsibility Report released recently, said investments in building the capacity of local companies was to help them win new businesses from local and major international suppliers.
It stated: “We do so through partnerships with national and local governments, national oil companies, nongovernmental organisations (NGOs), and development agencies. Chevron employees work to enhance local suppliers’ capabilities to meet industry standards, especially when it comes to health, environment and safety performance.
“Chevron recognises that the positive local impact of our supply chain investments can be amplified by the sourcing decisions of our suppliers. So we encourage our major international suppliers of goods and services to form joint venture partnerships with local businesses, and to maximise the purchase of local goods and services. These joint ventures create an opportunity for local businesses to gain access to new technology, bring their processes up to international standards and train their people on the latest industry practices.
“Chevron is also committed to investing in workforce training and job skills development in the communities where we work. Building the capabilities of local workforces not only helps us sustain a strong employee base, but also leaves a lasting positive impact on communities as they gain new skills and knowledge.”
Chairman of the Board and Chief Executive Officer of Chevron, John Watson, said in the report that the company knows that its business success is directly tied to the progress and prosperity of the communities in which it operates.
He said Chevron developed supply chains by enhancing local suppliers’ capabilities to meet industry standards. In 2016, we spent $39 billion on goods and services globally.
“Beyond direct business investments and taxes, we unlocked the potential for progress in these communities through social investments that focus on what we see as three crucial pillars: health, education, and economic development. Last year, we made more than $185 million in such social investments.”