Yemisi Izuora
Operators in West Africa oil and gas industry sector have proposed strategies for local, regional and international collaboration that will lead to effective local content delivery within the region and the continent.
These strategies were outlined at the just concluded 20th edition of Offshore West Africa conference in Lagos.
They suggested that manufacturing of equipment should be given priority rather than to rely heavily on importation of industry goods into Africa.
Executive Secretary of Nigerian Content Development and Monitoring Board, NCDMB, Mr. Denzil Kentebe said by building capacity initiatives within Nigeria and other Africa oil producing countries will limit importation of equipment.
Mr. Kentebe who represented by Mr. Paul Zuhumben said between 70 -80 percent of contracts awarded goes to Nigerian companies to further strengthen the implementation of the local content law.
He noted that Nigeria will continue to leverage on goods that are available in-country to support local content and develop the economy, thereby reducing the number of imported goods.
However, he noted that NCDMB does not discriminate any product that is manufacture in-country, stressing that such goods are accepted both from Nigerian owned companies and foreign own ones.
Mr. Tosin Yusuff, Country Director, African Energy Association, Nigeria on his part stated that there is need to address the issue of finance.
He explained that local banks don’t have the ability to support most projects that are awarded to local companies in the oil and gas industry.
“These companies are forced to get offshore finance to finance their projects. This practise cannot fully develop our local content initiative,” he said.
He equally stressed that indigenous companies need to grow organically which banks have to support
He added that local intellectual properties should be adequately harness in the industry arguing that until “we see local content as a denominator in the industry, and not just as a law, we will remain limited.”
When local content is not effectively delivered, and integrated locally, regionally and internationally, Yusuff said profit made in the industry are spent offshore.
The CEO, Petroleum Commission, Ghana Mr. Theophilus Ahwireng said to grow local content locally, regionally and internationally means to boost manufacturing in-country.
He explained that local content should be measured not by putting money in the pocket of few individual but to add value to the economy.
Mr. Ahwireng who represented by Kwaku Boatang said Ghana has stricter policy governing the operation of its local content law.
Moderator of the discussion, Dr. Ibilola Amao stressed that each region should focus on their core area of competence.
“When each region focus on their core area of competence, Original Manufacturing companies can easily partner with local companies in Africa.
“Local, regional and international collaboration on local content creates jobs for the African region,” she said.