Determinants of backward linkages of oil and gas industry in the Nigerian economy

Adeolu O. Adewuyi and T. Ademola Oyejide

Resources Policy, 2012, vol. 37, issue 4, 452-460

Abstract: This paper examines the determinants of backward linkages from the oil and gas industry in Nigeria. Secondary and primary data collected cover firms engaging in fabrication and construction; well-construction and completion, and control systems and ICT. Both descriptive and inferential statistical approaches were employed in the paper. Despite the widespread view that local content in the Nigerian oil industry is very low, there is a clear evidence for the existence of linkages – at least insofar as the three sub-sectors considered in this analysis are concerned. The paper shows that many of the linkages in the Nigerian oil value chain involve local firms, and that this has been a consequence of local content policies and investments in telecommunications and transport. Linkages have been held back by weaknesses in power and water infrastructure. The large investment in higher education in Nigeria suggests that skill-constraints have not been a major obstacle to linkage development in the three sub-sectors. The flow of labour to and from other sectors is indicative of learning spillovers, both within Nigeria and in the West African regional economy. Regression analysis shows that skills, policies, the quality of the national innovation system and their interactions are the major drivers of backward linkages. A number of policy implications to enhance linkage development in Nigeria's oil and gas value chain are identified.

Keywords: Backward linkages; Oil and gas industry; Nigeria; Supplier firms; Local content (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301420712000438
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:37:y:2012:i:4:p:452-460

DOI: 10.1016/j.resourpol.2012.06.007

Access Statistics for this article

Resources Policy is currently edited by R. G. Eggert

More articles in Resources Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().