Financial Energy Review
… .by Ben Ndubuwa…..
THE Executive Secretary, Nigerian Content Development and Monitoring Board, NCDMB, Engr. Simbi Wabote, has put Nigeria’s Local Content at 54 per cent.
Speaking at the ongoing 12th edition of the Practical Nigerian Content Forum in Yenagoa, Bayelsa State, he said: “It is my pleasure to announce that the 2023 Nigerian Content level in the Nigerian oil and gas industry is 54% based on our monitoring and evaluation of industry activities. This is similar to the 54% Nigerian content, NC, level achieved last year.
“Once again, this performance is well above the minimum target of 47% NC set for 2023 by the Board’s Project Management Office (PMO) just like we outperformed the 42% NC target set for 2022 by achieving 54% Nigerian Content.
“Further analysis of this year’s NC level performance shows that the top 3 performers of in-country spend are Shipping, Surveying/ Positioning services, and Inspection/ Testing and Certification with each at 100% NC level.
“On the other hand, the bottom 3 performers are Modification and Maintenance at 26% NC level; Health, Safety and Environment at 31% NC level; and Materials and Procurement at 32% NC level.
“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. 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 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.
“In more than seven (7) years of being in the saddle, I have served under 2 Presidents and 3 Ministers of State, with oversights from 7 Committee Chairmen spanned over the 8th, 9th, and now the 10th National Assembly not to mention the interactions several CEOs of international and indigenous operators.
“We have managed to adapt our workstyles and initiatives to derive the support of our principals and various stakeholders while enabling their various programs and policy initiatives such as 7 Big Wins, Economic Sustainability Program, Year of Gas, Decade of Gas, and several others.
“As we applause these achievements, permit me share some thoughts and reflections on the implementation of the strategic roadmap: A clear and well communicated goals and targets are very important in any organization.
“The goals and targets will need considerations and approvals from governance authorities at various levels otherwise they will not be realized. For us, our success would not have been possible without the endorsement and approval of our Top Management Committee, Tenders Board, Ministerial Tenders Board, Governing Council, Bureau of Public Procurement, National Assembly, and the Federal Executive Council. Time truly flies; it is imperative to finish off initiatives met on ground, aim to finish what you started, and pass the rest to the next dispensation for completion.”
Similarly, Chairman, Independent Petroleum Producers Group, IPPG, Abdulrazaq Isa, said: “This is a remarkable feat and NCDMB remains on track to meet, or even exceed, the 70% Nigerian Content target as articulated in its 10- Year Strategic Roadmap by 2027. Also at last year’s PNC, I spoke about the role NCDMB has played as a proactive business enabling regulator with collaboration on the phenomenally successful 5,000 barrels per day Waltersmith modular refinery in Ibigwe which commenced operations in November 2020.
“Today, as I projected last year, the refinery has delivered its first dividend payment to NCDMB, paid off a significant portion of its project financing and commenced an expansion phase designed to double refinery’s capacity to 10,000 barrels per day in the next eighteen months. NCDMB’s commercial ventures partnership programme continues to stimulate investment and promote in-country capacity.”
He added: “It is clear the Government’s effort in deepening local content in the Nigerian oil and gas industry is paying dividends and it is imperative that this effort is sustained with greater focus placed on bridging inherent capacity gaps; addressing infrastructural inadequacy and capital deficiency plaguing the industry at the moment in order to optimally derive the full benefits of the local content policy.”
