The federal government is targeting fresh investment in the oil and gas sector with the utilisation of the Nigerian Content Development Fund, NCDF.
The NCDF was established by Section 104 of the Nigerian Oil & Gas Industry Content Development (NOGICD) Act of 2010, which provides that one percent of every contract in the upstream sector of the Nigeria Oil & Gas industry shall be deducted at source and paid into the Fund.
The Act also gives the Nigerian Content Development and Monitoring Board, NCDMB, the mandate to manage the Fund and employ it for projects, programmes and activities directed at increasing Nigerian Content in the Oil & Gas industry.
Speaking at a stakeholders meeting in Lagos, acting permanent secretary, the ministry of petroleum, John Eboigbe said utilisation of the fund is captured in the 7 Bigwin, a development platform designed by the Nigerian National Petroleum Corporation, NNPC, that is expected to drive massive investment in the industry.
Eboigbe said the roadmap seeks to address key focus areas in the industry and the fund will help to boost investment drive by bridging infrastructure gap in the sector.
He said that every effort should be geared toward bringing stakeholders to fully participate in building the fund and ensure prompt and adequate remittances as prescribed by the law.
The executive secretary of the NCDMB, Simbi Wabote in his opening remark observed irregularities in the remittances and described payment of deductions into commercial banks as a criminal offence.
He said the Board has focused the early years in collections, putting in place the Operating Model for utilization of the Fund, establishing the NCDF Advisory Committee for efficient governance of the Fund; and creating confidence and trust of Industry stakeholders.
Waboted further noted that the Board opened up the Fund for utilization from 2013, based on the approved operating model that segmented 70 percent of the Fund to financing Commercial interventions and 30 percent for Developmental initiatives and activities carried out by the Board on behalf of the industry.
Offering further explanation, he said, Under Commercial interventions, the Fund was leveraged to provide 30 percent Partial Guarantee to commercial banks for loans granted to oil and gas service companies towards financing project execution, asset acquisition or facility upgrade.
It also provided 50 percent interest rebate on performing loans.
He said that developmental intervention covered Capacity Development Initiatives (CDIs) including training programmes, NCCF administration, establishment of NOGICJQS, establishment of oil and gas parks, direct equity participation by the Board in high impact projects as well as compliance monitoring activities carried out by the Board on behalf of the industry
Meanwhile, the Nigerian National Petroleum Corporation (NNPC) has outlined 12 business focus areas to spur efficiency, profit, and growth.
The lead policy framework, “12 Business Focus Areas (BUFA)’’ was unveiled by the Group Managing Director Dr. Maikanti Baru, in Abuja.
He received the reports of the eight committees set up to develop appropriate strategies to implement the focus areas.
The components of 12 BUFA, include security of NNPC assets and the development of new Business Models that would grant autonomy to the various units of the Corporation.
“Settling Joint Ventures Cash Calls; Ramping up crude oil production and reserves growth; Growing NPDC as the Corporation’s cash cow and Focusing on gas development for both domestic and export markets,’’ are also some of the components as contained in a statement.
According to the statement by Mr. Ndu Ughamadu, Group General Manager Group Public Affairs Division of NNPC, others are the upgrading of existing refineries and creating an opportunity for refining expansion.
“Focusing on renewable energy and Frontier Exploration; revamping the oil and gas infrastructure; pursuing profitable ventures and common services; and ensuring professionalism and Accountability of the Corporation.’’
Catering for the welfare of staff who are regarded as critical stakeholders for the success of the vision is another component.
Baru who received the report described the preliminary work done by the various 12 BUFA committees as “a commendable effort”.
Baru said the document would put NNPC on the path of growth and profitability.
He directed the Chief Operating Officers (COOs) of the Corporation to start immediate implementation of the policy framework.
He advised the COOs to revert to Management in cases of getting better clarifications on any gray areas.
Baru said in such cases, the documents would be subsequently reviewed jointly by NNPC Management and the Committees, followed by full implementation.
Also speaking at the occasion, the Group General Manager, Corporate Planning & Strategy (CP & S) of the Corporation, Mr. Umar Ajiya commended the various committees for an excellent job.
Baru had in December 2016 inaugurated the eight committees.