Executive Secretary, Nigerian Content Development and Monitoring Board, NCDMB, Engr. Simbi Wabote, says that prior to the adoption of local content; the Nigerian oil and gas industry was characterized by revenue focus with little emphasis on in-country value addition
Wabote, who made the disclosure at the breakfast meeting with Guild of Corporate Online Publishers (GOCOP) at the weekend in Lagos, said with the implementation of the local content Act in 2010, there has been increased in-country value retention from 26 per cent in 2016 to 42 per cent in 2022.
Wabote said “Nigeria moved from near zero participation in the oil and gas sector to the point that our indigenous operators such as SEPLAT, AITEO, EROTON, and others are now responsible for 15% of our oil production and 60% of our domestic gas supply.
“Before the Act, we had an annual spend of $20 billion, with little or nothing retained in-country. Today, we now spend more than $8 billion in-country per year. We now have 2 world-class pipe mills and 5 impressive pipe coating yards.
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“More than 40% of marine vessels used in the oil and gas industry are now owned by Nigerians. In fabrication, today Nigeria can handle fabrication of more than 250,000 Tonnes per annum.
“Over ten (10) million training man hours have been delivered via our Human Capacity Development Programs. No surprise that our indigenous workforce was able to sustain oil production at the peak of the COVID-19 pandemic lockdown.
“Over 50,000 direct jobs have been created on the back of the implementation of the NOGICD Act.
“Completion and commissioning of our 17-storey headquarters building – the Nigerian Content Tower in Yenagoa, complete with a 1,000-seater conference auditorium and multi-level car park.
“Completion of 10MW power plant for the supply of electricity to the Nigerian Content Tower and the industrial park in Bayelsa State.
“Completion and commissioning of the 5,000bpd Waltersmith Modular Refinery at Obigwe, Imo State; the refinery is currently in operation with the products completely sold out.
“Launched the $350million Nigerian Content Intervention Fund managed by the Bank of Industry and NEXIM Bank for single digit loans for Asset Acquisition, Manufacturing, Loan Refinancing, Working Capital and Loan for Women in Oil and Gas.
Continuing on the gains of the local content Act, The Executive Secretary stressed that the Board also established another $30m Working Capital Fund to support oil and gas service companies. Both the Women and Working Capital funds are managed by Nexim Nigerian Export-Import Bank.
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“The level of Expatriate Quota has continued in a downward trend due to our stringent monitoring activities and collaboration with the Ministry of Interior. We continue to utilize the Exchange Program and the Understudy Program under the Expatriate Quota regime to develop required skills in the industry.
“Construction of oil and gas industrial parks spread across six (6) states complete with the provision of infrastructure and utilities to enhance local manufacturing.
“Partnership for the local manufacturing of 1.2million composite LPG cylinders per year with the 1st phase scheduled for commissioning in 2022.“Partnership for the establishment of additional modular refineries in Bayelsa and Edo States. Partnership for the construction of 300MMscfd gas gathering hub for gas supply into the OB-3 pipeline in Edo State.
“Partnership to deepen LPG utilization in the North with the roll-out of LPG bottling plants and depots in ten (10) Northern States of Kaduna, Bauchi, Katsina, Kano, Nasarawa, Niger, Plateau, Gombe, Zamfara, Jigawa and Abuja.
“We now boast of very high engineering design capacity as Nigerian companies now have the required skills to do conceptual, FEED, and detailed engineering designs.
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“We now have capacity to manufacture low, medium, and high voltage cables and paints that can match any standard or quality in any part of the world,” an elated Wabote said.
He insisted that with continued improvement in local content involvement in the oil and gas industry, “other nations are even coming to learn from us, we need to now extend it to other sectors of the economy to further drive our National Development in the growth trajectory.
“It is important to state here that our plan in NCDMB is that by 2027, we will ensure 70% Nigerian Content; creation of 300, 000 direct jobs; retention of USD$13Bn of the estimated USD$20Bn spend in the oil and gas industry; ensure the domiciliation of major fabrication yards and manufacturing hubs in-country. These are no mean targets we have set for ourselves,” he added.
He therefore urged the online publishers to first “understand the importance of Nigerian Content to the national economy; and to continue to advocate for Local Content in all spheres of the Nigerian economy.”