Victor EzejaExecutive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr Simbi Wabote, has called on stakeholders in the oil and gas industry to step up efforts in increasing Nigerian content level.
According to him, the Board’s monitoring, and evaluation of activities revealed that the Nigerian Content level in the Nigerian oil and gas industry stands at 54 per cent in 2023. This is similar to the NC level achieved in 2022.
Wabote revealed this on Tuesday in his keynote address at the ongoing 12th edition of the Practical Nigerian Content Forum holding in Yenagoa, Bayelsa State.
The NCDMB boss said that although the NC level is above the minimum target of 47 per cent set for 2023 by the Board’s Project Management Office (PMO), it calls for concern and urged industry stakeholders to reflect on the indices and see the need to double effort and avoid sliding back.
According to him, increasing the Nigerian Content level has so many benefits that the industry stakeholders should not allow it to elude them and the country in general.
“While the 54% NC Level achieved in 2023 is commendable, it calls for industry stakeholders to reflect if this is a sign of stagnation or the inflection point leading to the decline in NC level in the oil and gas industry,” Wabote said.
“From where I sit, I see some disturbing signs pointing to that direction and I believe we can counter these emerging dynamics as this is not the first time we have faced such an onslaught on local content practice.
“I am sure you all know that getting the industry to this level of Nigerian Content is not a walk in the park and I believe all discerning stakeholders in the industry will play their part to prevent us from going back to the dark days of implementing Nigerian Content as a token of consolation. The nexus between high Nigerian Content levels and the relative peace in the industry must not be lost on us,” he added.
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The local content provision as enshrined in the Nigerian Oil and Gas Content Development (NOGCD) Act 2010 is to promote indigenous participation in Nigeria’s oil and gas industry to improve the economic and social well being of those operating in the industry and the country generally.
The Act which provides for the development of Nigerian content in the Nigerian oil and gas industry, stipulates that any organisation that intends to operate in the industry must consider Nigerian content as a vital “element of their overall project development and management philosophy for project execution.”
The NCDMB executive secretary said further analysis of the 2023 NC level performance shows that the top three performers of in-country spend are Shipping, Surveying/ Positioning services, and Inspection/ Testing and Certification with each at 100 percent NC level; while the bottom three performers are Modification and Maintenance at 26 per cent NC level; Health, Safety and Environment at 31 per cent NC level; and Materials and Procurement at 32 percent NC level.
He noted that in the last seven years of managing the affairs of the Board, his team has tried to ensure that their work and initiatives tally with the goal of the government and various stakeholders for overall success.
Wabote highlighted various activities of NCDMB in the last seven aimed at implementing the 10-year Strategic Roadmap launched in 2017 for deepening local content in the oil and gas industry.
The roadmap has five pillars – Technical Capability Development, Compliance & Enforcement, Enabling Business Environment, Organisational Capability, and Sectorial & Regional Market Linkage – and four enablers which include funding, regulatory environment, collaboration & stakeholder engagement and research & statistics.
Under technical capacity, he mentioned that the Board has recorded significant achievements in terms of human capacity development, developing industrial parks under the Nigeria Oil and Gas Park Scheme (NOGAPS), and other projects aimed at deepening in-country gas utilitisation, and creation of jobs.
“On the construction of additional NOGAPS industrial parks, we currently have eight in our portfolio including the two planned to commence operations next year. The other six are in Akwa Ibom, Imo, Ondo, Delta, Edo, and Abia states which are at various stages of engineering design and site preparation works.”
He also disclosed that plans are on top gear to create a shipyard at Bonny Island in Bayelsa State. According to him, the focus of building the facility is for ship maintenance, repairs, and overhaul, adding that when completed, “the shipyard will be able to capture about 30 per cent of the market share for repair and maintenance of LNG carriers and cargo ships.”
“The permits and consents plan for the shipyard is being progressed with NIWA, NIMASA, NUPRC, NPA, NIGS, OGFZA, and several other stakeholders.
“As we firm up the technical and regulatory aspects of the project, we are preparing the commercial framework for the project to ensure there is clarity on funding, ownership, and efficient operations of the facility.
“We are also delighted that we are already being contacted by reputable firms interested in the construction of the shipyard while offering their technical and financial expertise to bring the project to reality,” Wabote stated.
He also stated that NCDMB partnered with Waltersmith to establish a 5,000bpd modular refinery in Ibigwe, Imo State. “This year alone, the refinery has produced and sold over 170 million liters or about 3,000 trucks of petroleum products that would have been hitherto imported using our scarce forex.
“I am pleased to note that the site works for the expansion of the refinery to a 10,000bpd refinery commenced in September 2023,” he stated.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
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