The federal government in the course of implementing the local content law targets in-country retention of $14bn out of the $20billion yearly industry spend and creation of 300,000 direct jobs.
Another key target is 70 percent in-country value retention within the next 10 years
The Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Wabote who stated this at Owerri, Imo State, at the 2nd edition of Nigerian Content Workshop organised by New Planets Projects, added that the new phase of implementation was
He said the new targets will be achieved using a two-pronged approach, which includes creating enabling environment to attract investors and protecting existing and new local investment by effective compliance oversight and monitoring. It will also “require deepening of local content practice in the upstream, midstream, and downstream sectors of our oil and gas industry.”
Dwelling on the Board’s 10-year road map, Wabote said the successful attainment will be hinged on five pillars, namely Technical Capability Development, Compliance and Enforcement, Enabling Business Environment, Organisation Capability and Sectorial and Regional Market Linkage.
He said the Board will seek to extend and deepen in-country technical capability through the completion of five oil and gas parks in Delta, Akwa Ibom, Cross River, Bayelsa and Imo States; establishment of two additional pipe mills; local manufacture of LPG Gas Cylinders; collaboration to establish a dry dock facility in-country to cater for the maintenance of big vessels, including LNG carriers; local fabrication of modular refineries and demonstration of 50percent FPSO Integration capability in 3-4 years and 100 percent integration within 10 years.
As part of the road map, he said the Board’s compliance and enforcement monitoring efforts will be extended to all operators and service providers in the upstream, midstream, and downstream sectors of the oil and gas industry.
The Executive Secretary underscored the Board’s efforts to create an enabling Business Environment that encourages
He identified the need for sectorial and regional market linkages to increase industry contribution to the National GDP and facilitate access of Nigerian-made goods and services to regional markets.
He said the Board will also pursue regional marketing of some of the infrastructures being developed such as the FPSO Integration facility while sectorial linkages to other sectors such as power, ICT, construction, mines and steel will continue.
Responding to questions on the Nigerian Content Development Fund (NCDF), Wabote said the Board decided to create a transparent platform through which contributors can access the Fund for capacity building, before
Declaring the workshop open, Governor of Imo State, Owelle Rochas Okorocha stated that the Nigerian Content Policy has contributed positively to the development of the national economy. He regretted that the policy was introduced after 50 years oil production in Nigeria and the nation lost opportunities to maximize the benefits from the sector in the early years.
Okorocha stated that Imo State had the second largest gas deposits in the country, which can meet the power needs of the nation. He persuaded investors to take advantage of the abundant gas resources in state to site various kinds of industries. He averred that the process of extracting gas from the state was cost effective when compared to other locations, being that the terrain in Imo state was mostly upland.
He also assured that investors will enjoy a bouquet of incentives and enjoy the peaceful environment the State Government was working hard to maintain.