A comparison of the Nigerian oil and gas supply chains with the UK: Taking a sustainability perspective

Purpose: The importance of the oil & gas (O&G) industry to the global energy industry cannot be underestimated. However, its products and operations also constitute a great risk to human life, environment and the society at large. To this end, the need for sustainable operations in the industry, in a manner that minimises negative impacts on the society and the environment, cannot be overemphasised. Coincidentally, the concept of sustainable supply chain management (SSCM), which is premised on an infusion of sustainability initiatives into the supply chain management concepts of organisations, has been identified as a way to accomplish corporate sustainability. Interestingly, considerable efforts have not been dedicated to SSCM issues in the O&G industry despite its importance and risky nature. Nonetheless, some of available studies have confirmed a positive link between sustainability practices and organisational performance in the UK O&G industry, whereas, no evidence of such is found in the Nigerian O&G industry, which has been a subject of global criticism owing to the negative impacts of operations on the environment and society. In the light of the above, this study purports to investigate the differences and similarities in the sustainability initiatives adopted in the supply chains of the firms operating in the Nigerian and UK oil and gas industries, with a view to making recommendations to enhance the SSCM strategies in the Nigerian O&G industry. Research Approach: This is a comparative study that triangulated secondary data from the UK O&G industry with primary data from the Nigerian O&G industry to inductively investigate the differences in the sustainability initiatives adopted in the two distinct countries within the triple bottom-line concept. As an exploratory study which is qualitative in nature, secondary data from company’s documents in the UK were analysed on thematic focus on the objective of the study. The emerging themes were used as the basis for developing interview protocol which was administered on four operators, who are senior management staff across the supply chain of the Nigerian O&G industry. The findings of the interview were analysed and compared with original findings from the UK O&G industry to delineate key areas of similarities and differences within the Triple bottom-line of sustainability. The above eventually formed a basis of recommendations for the operators in Nigerian O&G industry. Findings and Originality: In the first instance, our findings reveal that there is a significant similarity in the initiatives adopted in the UK and Nigerian O&G industry to achieve social sustainability objectives across the entire supply chain. On the contrary, we found that while the operators in the UK O&G industry adopt measurable proactive initiatives to accomplish their environmental sustainability objectives, their Nigerian counterparts depend majorly on regulations (often considered weak) to drive their environmental sustainability objectives. Similarly, areas of differences and similarities were further noted in the initiatives channeled towards accomplish economic sustainability objectives in the two nations. Originality: The originality of this paper resides in the fact that it is one of the earliest attempts at comparing sustainable initiatives adopted in the supply chain of a developed economy (UK), with a developing economy (Nigeria) from a sustainability perspective. Research Impact: Based on the findings of this research, a contribution has been made to academic theory on SSCM by further expanding the application of the triple bottom-line concept in the O&G industry. It has also addressed the existing gap on the need to compare the sustainability practices in the supply chain of oil and gas firms in a developed economy with that of a developing economy. Practical Impact: The recommendations from the findings of this is considered valuable to the O&G practitioners, especially the supply chain managers, policy makers and governments of oil producing nations (particularly in the developing economies). This is because the study has underscored the specific areas of differences in the sustainability strategies of a developed nation, which could be adapted into the strategies currently adopted in a developing economy O&G industry.