In Nigeria’s oil and gas industry, survival often hinges on moving from vendor to partner. “Vendors are replaceable. Partners are trusted,” says Daniel Agara, managing director of Dagrow Resources Ltd., who is betting on innovation to make that shift pay off.
Agara’s turning point came in 2022 during a pipeline integrity job for a major Niger Delta operator. Instead of relying on manual inspections, Dagrow deployed drones for corrosion detection, slashing downtime by 30% and saving the client about $100,000 in potential delays.
The move, he says, repositioned the company as a strategic problem-solver, not just a service provider.
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The stakes are high. Nigeria, the world’s 12th-largest crude producer, pumped 1.8 million barrels a day in July — one of its best outputs in years — with oil and gas generating about 65% of government revenue and more than 85% of export earnings.
As international majors retreat from some onshore assets, local operators such as Seplat Energy Plc are ramping up investment. Seplat plans to spend $320 million this year to reopen 400 wells and lift output to 140,000 barrels a day.
Industry buyers say these shifts demand higher performance from contractors. “We don’t just want people who follow instructions,” says one procurement manager who has worked with both local and international firms. “We want people who help us think ahead and prevent shutdowns.”
For Agara, that means meeting ISO standards for quality, environment, and safety, alongside Nigerian Content rules.
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A zero-incident safety record, near-miss reporting, and operational tools like GPS tracking and predictive maintenance help set companies apart. But innovation, offering solutions before they are requested, is the true differentiator.
The rewards for making the leap include longer-term contracts, early access to tenders, and influence over project design. With Nigeria’s renewed local-content push, Agara sees an opening for indigenous firms to prove they can deliver world-class results.
“In this business, partnership isn’t given — it’s earned,” he says. “And once you earn it, trust becomes your most valuable asset.”