LACK OF IT HINDER COMPETITIVE ADVANTAGE

Does the lack of information technology in SME in the Nigerian upstream, Oil and Gas Industry hinder the creation of competitive advantage?

Table of Content

CHAPTER 1: INTRODUCTION3

Background of the study3

Problem Statement6

Purpose/Objectives of the study7

Rationale of the study7

Significance of the study7

CHAPTER 2: LITERATURE REVIEW9

CHAPTER 3: METHODOLOGY43

Research Strategy/ Design43

Research Design43

Literature Search44

Keywords44

REFERENCES45

Chapter 1: Introduction

Background of the study

Nigeria is arguably the most influential and most strategic country in Africa today in view of its population, its vast hydrocarbon resources and the commitment of the government to democracy, anti-corruption and African Unity. The economy is heavily dependent on its oil sector, which accounts for some 90 percent of export revenues and 41 percent of its Gross Domestic Product (World Bank, 2006). Despite its relative abundance of mineral resources, the expansion of Nigeria's oil sector has been stymied by its antiquated infrastructure and the frustrating slow movement of goods through Nigeria's major ports.

It is on record that the rapid economic development in Nigeria has been largely to the deliberate policy of the government on technological capacity building through investment opportunities that exist in the oil and gas (SME) industry, in human capital and institutional building. Technological development in the Nigeria's oil and gas (SME) industry has been facilitated by a number of systematic and deliberate policies directed toward building of a network of institutions for the promotion of technological capacity.

It is also on record that institutional capacity building and co-ordination have remained part of the strategies adopted by the Nigerian government for tackling the questions of technological backwardness. For instance, technological development in Southeast Asia was facilitated by a number of systematic and deliberate policies directed for the building of various institutions. This is not to suggest that Nigeria should follow the same development path to technological capacity building like the Southeast Asia. The important lesson is that Asian experience has confirmed the general view that human and institutional capacity buildings are critical to technological development. In this context, this paper intend to identify and analyse some critical constraints to technological capacity building (TCB) in Nigeria's oil and gas (SME) industry with the view to providing solutions to the problems and also to unfold what lessons might be learnt from the developed countries.

Looking back on the eve of the oil phenomenon, the Nigerian economy through agro-based was relatively diversified. There existed self-sufficiency in food production, with enough to feed the population and extra for export. The country had a strong export sector and budding industrial base. There were functioning laws, institutions, social and economic infrastructure as well as limitless job opportunities. Above all, security of life and property was adequate and foreign investors had confidence in the economy. This was the situation on ground before Nigeria's first export of crude oil in February 1958.

Since 1970s, the oil and gas (SME) industry has become the fundamental to the Nigerian economy, providing the bulk of revenue as well as the foreign exchange earnings for the ...