Backwards integration in the energy sector will foster growth and sustainability enabled by improved efficiencies, innovation, and upgrades in local expertise and participation, the Director of Governance and Sustainability at Sahara Group, Ejiro Gray, has said.
Addressing at just concluded Nigeria International Energy Summit in Abuja, she said backward integration in the energy sector will also promote the collaboration of host communities in operations across the value chain.
Gray added that building local capacity for the extraction and processing of natural resources will facilitate job creation and economic growth.
Speaking during a panel session on the theme “Local Content Investment and Sustainable Energy Future”, she said, “Backward integration helps to reduce the cost of raw materials, providing a more stable and predictable supply chain that presents opportunities for growth and self-sufficiency in the oil and gas sector. This is arguably one of the best ways of developing and enhancing local expertise and sustainability in the sector.”
According to Gray, the sector needs to work on developing policies that prioritise the development of local capacity and offer incentives for backward integration.
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