Chevron’s true spirit of local content patronage

Considering the refusal of some government establishments and the prevailing attitude of several Nigerians towards the patronage of locally-produced items; the recent example of Chevron Nigeria, a world leading integrated energy multinational corporation with headquarters in the United States, which made huge headlines is one worth mentioning especially as it goes against the norm.
According to the reports which trended online and in several major newspapers last week, Chevron was reported to have engaged Zinox Technologies Ltd., a local technology company based in Nigeria for the implementation of a massive roll-out of desktop computers, laptops, monitors and other accessories with which it is equipping its offices and other establishments in the country.
Interestingly, the reports revealed that Zinox has enjoyed years of consistent patronage from Chevron and other multinationals such as Total and Shell, among others. This development is quite significant when one considers the high standards a typical multinational company would naturally aspire to.
An import-dependent country whose citizens has for long turned up their noses at locally-produced goods, Nigeria is currently mired in an economic recession which has shown little or no signs of abating. Buffeted by spiralling inflation, dwindling value of her local currency – the Naira and insufficient access to foreign exchange for manufacturers and other local businesses, the Nigerian economy has taken a huge bashing in recent times, with foreign investment inflow in 2016 dipping by $4.52 billion to $5.12 billion, the lowest in nine years, according to data made available by the Nigerian Bureau of Statistics (NBS).
It is an open secret that one of the quickest ways to turn around the ailing Nigerian ship is to encourage local production and the patronage of locally-made goods in order to stem the tide of large-scale importation and correct the imbalance of trade or trade deficit that has crippled the nation’s once-vaunted local production machinery. Evidently, talk has been rife in government circles promoting the patronage of made-in Nigeria products, as encapsulated in recent campaigns such as “Buy Naija to grow the Naira”.
The reality, however, shows that lip service, at best, is what is being paid to these initiatives.
While the country certainly has a Local Content Act which seeks to encourage patronage by foreign firms operating in Nigeria, monitoring and enforcement of same is another matter. Worse still, Government establishments, Ministries and parastatals who should be the most vocal supporters are the major culprits in the snub of local brands. It is a shame that taxes paid by these struggling local manufacturers are consolidated and used to buy the products of their international competitors, thereby employing foreigners in their own countries against the effort of our children that we spent huge amount to train in some of the best schools around. How do we expect a progressive Nigeria driven by Nigerians?
Nigeria boasts of companies such as Innoson Motors manufacturing credible Made-in-Nigeria vehicles yet the majority of our politicians, National Assembly members and other government leaders see nothing wrong in using foreign-made vehicles in commuting distances as short as from their respective houses to the airport or even to work. Down south in Aba, Abia State, Nigeria has thousands of youths churning out masterpieces in shoes, belts and other fashion accessories. The suits, shirts and other clothing items tailored in that town are capable of giving those produced by the likes of Givenchy, Versace and Christian Dior, among others a good run for their money. But we constantly shun these local brands in preference for foreign brands. Yet, we expect the Naira to make gains against the dollar.
Worse still, a tour of most government establishments, Ministries and parastatals will reveal that the majority of the computer hardware and other associated work tools used are, of course, foreign brands. Hardly a way to grow the Naira!
It is instructive to note the growing contribution of the ICT sector to Nigeria’s Gross Domestic Product. At a time when diversification represents another clear opportunity for the country to correct the mistake of its over-dependence on crude oil, only a few seem to appreciate the direct impact local patronage in the sector can have on the nation’s economic fortunes.

Consider this:

While the banking sector which imported the largest value of capital in the Q3’16 recorded a decline of $394.22 million or 70.96 per cent in Q4’16, Telecommunications alone recorded an increase of $309.45 million, which more than doubled the amount of capital imported in the previous quarter to reach $554.25 million. This was the largest value of capital imported by any sector in this quarter.
The foregoing brings to light the growing importance of the ICT sector to the Nigerian economy.
Looking back to the example of Zinox, it is worth pointing out that this is a purely Nigerian company founded by serial digital entrepreneur, Leo Stan Ekeh and his team – a company that has saved this country severally in major ICT projects after foreign brands failed to deliver. Same Zinox few years ago was invited to run the biometric election registration of a few countries in Africa, notably Guinea Bissau and The Gambia during the Commonwealth Heads of Government Meeting (CHOGM), among others.
For a local company such as Zinox to boast competencies in the production and supply of ICT products and services that meet the demands of Chevron and other major multinationals, this means there is hope for this country not in external hands or individuals but in the men and women residing here in spite of the infrastructural and socio-economic challenges posed to the ease of doing business here.
How do we promote and encourage the true spirit of local content patronage in Nigerians, especially when Federal Government projects are contracted to foreign firms? When will the Naira begin the tumultuous journey to regaining some semblance of parity with the dollar and other foreign currencies when we, as Nigerians, consistently shun the patronage of genuine, locally-produced but world class goods and items? If the ordinary man in the street takes no pride in a Nigerian product, how do we expect the foreign national to embrace it?
Perhaps, the answer lies in the example of Chevron, Total, Shell and other multinationals with the patronage of a purely Nigerian technology brand. All of us should borrow a leaf…

 
Dr. Bode Oyetunde is an e-Content analyst who resides in Ondo State, Nigeria