As businesses in Nigeria and across the globe grapple with disruptions and setbacks caused by the coronavirus pandemic, the Nigerian Content Development and Monitoring Board (NCDMB) has offered survival tips to Project 100 companies and other oil and gas service companies in Nigeria how to navigate through these precarious times and remain resilient
The advisory is embodied in a document titled “Maintaining Business Resilience Amidst COVID-19,” prepared by the Project Management Office (PMO) of the Project 100 Initiative – a capacity development programme of the NCDMB in partnership with KPMG, an international consulting firm.
The document was circulated to Project 100 beneficiaries as part of institutional support from the NCDMB to ensure business continuity and resilience by these start-ups.
The advisory identified supply chain and operations disruptions as one of the major challenges experienced by companies in times like this. It enjoins Project 100 companies and other local businesses to identify where their key suppliers and contractors are located and develop contingency plans to ensure the sustainablity of supply. The local businesses were also advised to engage their logistics provider and develop mitigation and contingency plans in view of the restrictions and lockdown in many parts of the country.
The advisory also enjoins these start-ups and local supply chain to constantly review their active contracts to understand potential vunerabilities and how best to mitigate their risks, especially the impact of force majeure.
On inventory, the Board encouraged organizations to assess their cover and consider ring-fencing for particular customers in the case of shortages.
The advisory also identified the need for Project 100 companies and local businesses to develop a communication plan and engage with key customers, employees and suppliers and ensure that their staff can work remotely and safely while trying to maintain key operations.
Other key nuggets included the need to pay attention to technology, Service Level Agreements (SLA) and to brace to take the shock of contract renegotiation with clients.
To ensure financial stability, NCDMB advised project 100 and local businesses to revise their cash flow, working capital management and inventory forecasts alongside supply and demand forecasts. It also predicted that national governments across the globe might adopt trade protectionism, hence oil and gas companies need to get mitigation plans for supply by developing domestic alternatives.
The advisory urged oil companies to review public health requirements and to assure customers that their products and services are still safe, while keeping an eye on the drop in demand and cost and profitability.
Above all, the advisory listed quick win measures for Project100 companies to include maintaining business agility, emergency preparedness, good risk assessment, motivated workforce, technology savvy and prudent financial management.
The issuance of this advisory is demonstrative of the resolve of NCDMB leadership to stand by Project 100 companies through thick and thin.