Indigenous Talent, Energy, and Multinationals
I was reading somewhere recently about Nigeria's lack of indigenous energy and construction firms. I happen to work at a rather big engineering, construction, & project management company in the US and I can see some of the issues Nigeria is facing in terms of not having an indigenous multinational company - at least from this side of the fence so to speak. Nigeria desperately needs a "Fluor" or a "Kellogg Brown and Root"! Every big project that could potentially employ a large sector of white collar Nigerians gets contracted out to he who can handle the so said "contract" and the associated accelerated schedule. In Nigeria's case this is usually a "Julius Berger" or some other multinational company. The country desperately needs to develop it's in house talent and hopefully over time create increasing employment opportunities for all Nigerians. At this point in time, Nigeria is shipping in ex-pats left and right for every single thing. We all know these ex-pats cost a lot of $$. The privatization initiative should be an opportunity to really develop our talent base in Nigeria. If we were paying out in naira instead of dollars, it would definitely help and not hurt the Nigerian economy.
Furthermore, the power issue (Energy) hurts me the most. It is imperative that Nigeria get its act together with its energy initiative. I have read different articles recently about proposed power plants to be erected all over different parts of the country. I recently worked on a big $2.3 billion power project in Turkey. The project added almost 4000 megawatts to the Turkish power grid. Now consider the total cost and the amount of power that was added to the Turkish grid. For some perspective, Turkey has a population roughly of about 70 million people, and we were adding in 25% of their total power output. Can you believe that? 25%! Now consider Nigeria....We can use the last official figure of 120 million people as a base. Now what is our total power generated you ask? - not even 4000 megawatts. We consistently run on anywhere between 1500 - 2500 megawatts. I believe Nigeria has a total generation capacity in the neighborhood of 3500 megawatts. Although, recent reports have us generating a few more megawatts due to some recents upgrades in generation ability.
The company I work for would probably not have won the Turkish project if it were not in a joint venture with a Turkish company. A part of the contract was to ensure that the Turkish people benefited from the project. Thus, the company had minimal ex-pats over from the US and mostly local (Turkish) engineers throughout execution. If Nigeria has a company that can compete with the foreign firms, and/or go into joint ventures with them, the country stands to benefit immensely in the long run. It would eventually build up the talent in the company and possibly make inroads into the local projects of other West African countries. Almost all foreign countries do the same thing - they support their own! When an American company like Fluor or GE is bidding for a job in Germany, you can bet your a$$ that Siemens is in on it - the German government will do everything in its power to ensure they (Siemens) get the job - competitively of course.
My point here I guess is that I applaud the idea to get a Nigerian (multinational type) energy and construction company going. Yes, it could be regarded as an opportunity for some in government to embezzle money and yes, some of the eventual big guys in this company would be in a position to rake in a lot of money. However, the big picture here is that the company will be there years after these folks are long gone. At that point a lot of people will have moved up in the company, and our young talented Nigerians from all our Universities and polytechnic should have a place to go right out of school. This is truly what we need.
There will always be the super rich, so we should not loose sight of the big picture when it comes to developing a base for our own talent.
Furthermore, the power issue (Energy) hurts me the most. It is imperative that Nigeria get its act together with its energy initiative. I have read different articles recently about proposed power plants to be erected all over different parts of the country. I recently worked on a big $2.3 billion power project in Turkey. The project added almost 4000 megawatts to the Turkish power grid. Now consider the total cost and the amount of power that was added to the Turkish grid. For some perspective, Turkey has a population roughly of about 70 million people, and we were adding in 25% of their total power output. Can you believe that? 25%! Now consider Nigeria....We can use the last official figure of 120 million people as a base. Now what is our total power generated you ask? - not even 4000 megawatts. We consistently run on anywhere between 1500 - 2500 megawatts. I believe Nigeria has a total generation capacity in the neighborhood of 3500 megawatts. Although, recent reports have us generating a few more megawatts due to some recents upgrades in generation ability.
The company I work for would probably not have won the Turkish project if it were not in a joint venture with a Turkish company. A part of the contract was to ensure that the Turkish people benefited from the project. Thus, the company had minimal ex-pats over from the US and mostly local (Turkish) engineers throughout execution. If Nigeria has a company that can compete with the foreign firms, and/or go into joint ventures with them, the country stands to benefit immensely in the long run. It would eventually build up the talent in the company and possibly make inroads into the local projects of other West African countries. Almost all foreign countries do the same thing - they support their own! When an American company like Fluor or GE is bidding for a job in Germany, you can bet your a$$ that Siemens is in on it - the German government will do everything in its power to ensure they (Siemens) get the job - competitively of course.
My point here I guess is that I applaud the idea to get a Nigerian (multinational type) energy and construction company going. Yes, it could be regarded as an opportunity for some in government to embezzle money and yes, some of the eventual big guys in this company would be in a position to rake in a lot of money. However, the big picture here is that the company will be there years after these folks are long gone. At that point a lot of people will have moved up in the company, and our young talented Nigerians from all our Universities and polytechnic should have a place to go right out of school. This is truly what we need.
There will always be the super rich, so we should not loose sight of the big picture when it comes to developing a base for our own talent.

