The Nigerian Content Development and Monitoring Board (NCDMB) and Nigeria LNG Limited (NLNG) have joined forces to introduce new local content opportunities on the E-Marketplace.
This strategic collaboration marks a significant step towards promoting transparency and empowering local businesses in the oil and gas industry.
During the Nigerian Oil And Gas Energy Week (NOG 2023) held in Abuja, Engr. Simbi Kesiye Wabote, the Executive Secretary of NCDMB, made an exciting announcement.
He revealed that the launch of local content opportunities on the E-Marketplace project would be carried out in phases, starting with NLNG.
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To ensure the success of this initiative, a joint working committee, consisting of members from both NLNG and NCDMB, has been established to co-create a blueprint for the Phase-1 implementation of the E-Marketplace.
In subsequent phases, the project will expand to include collaboration with the Oil Producers Trade Section (OPTS), Independent Petroleum Producers Group (IPPG), and other key stakeholders.
Wabote commended NLNG for their unwavering commitment to complying with the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act and their willingness to partner with NCDMB on various initiatives.
The establishment of Service Level Agreements (SLA) between NLNG and NCDMB in 2017 has significantly expedited the approval process for requests submitted to the Board.
The Nigerian Content Seminar, organized by NCDMB, served as a vital platform for stakeholders in the industry to gain clarity on the provisions of the NOGICD Act (2010), Ministerial Regulations, guidelines, tools, and initiatives.
Wabote specifically quoted section 70 (h) of the Act, emphasizing the Board’s commitment to assisting local contractors and supporting Nigerian companies in developing their capabilities and capacities within the oil and gas industry.
He clarified that such support falls well within the Board’s mandate and is instrumental in driving Nigerian Content development.
Highlighting various initiatives undertaken by NCDMB, Wabote mentioned the $300 million Nigerian Content Intervention Fund with the Bank of Industry (BoI), the $100 million Matched Fund with NEXIM Bank, the $50 million R&D Intervention Fund, and the $50 million NOGAPS Manufacturing Fund.
Additionally, the Board has partnered with local businesses to establish modular refineries, gas processing plants, LPG storage facilities, Base Oil production plants, LPG depots, and refilling plants. These partnerships are designed to achieve specific goals and have well-defined exit plans once targets are met.
To address the challenges hindering manufacturing in the oil and gas industry, NCDMB is actively developing the NOGAPS Industrial Parks in seven states: Akwa Ibom, Bayelsa, Cross River, Delta, Edo, Imo, and Ondo. The industrial parks, utilizing a “sites and services” model, aim to provide modern infrastructure to support in-country manufacturing.
The Odukpani Industrial Park in Cross River and the Emeyal-1 Industrial Park in Bayelsa are currently in advanced stages of completion and are expected to commence operations in 2024.
The Shell Petroleum Development Company Joint Venture and ExxonMobil Joint Venture have made notable contributions to the industrial parks through the CDI programs.
During a panel session titled “Exploring Emerging Opportunities for Local Content in Achieving Energy Security,” Mr. Abdulmalik Halilu, the Director of Planning, Research, and Statistics at NCDMB, stressed the importance of focusing on manufacturing as a key strategy for promoting local content in the oil and gas industry. Manufacturing accounts for 54 percent of the expenditure on major oil and gas projects.
Halilu highlighted the Board’s developmental and monitoring interventions, such as the Nigerian Content Manufacturing Initiative (NCMI) and the Nigerian Content Equipment Certification (NCEC), which encourage original equipment manufacturers to produce certain components in Nigeria.
The Nigerian Oil and Gas Parks Scheme (NOGaPS) has also been introduced to enhance manufacturing efficiency and remove entry barriers.
Dr. Ama Ikuru, the Director of Capacity Building at NCDMB, called upon the Federal Government to address challenges hindering manufacturing in the oil and gas industry.
This includes providing dedicated power and improving the infrastructure leading to manufacturing facilities.