…Wabote Cautions Against Relapse In Local Content Drive
The 12th Practical Nigerian Content Forum 2023 got underway on Tuesday at the Nigerian Content Towers, Yenagoa, with the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Kesiye Wabote announcing that the agency has completed 83 percent of the 96 initiatives it started under the Nigerian Content 10-year Strategic Roadmap.
The strategic roadmap was launched at the end of the year 2017, with the goal of increasing Nigerian Content in the oil and gas industry to 70 percent by the year 2027. The roadmap is undergirded by five pillars and four enablers to drive the focus areas and are supported with short, medium, and long-term initiatives.
Presenting the scorecard of the NCDMB at the PNC which is attended by over 700 oil and gas stakeholders, the Executive Secretary indicated that the Board’s focus would shift to the remaining initiatives, which according to him required some heavy lifting to bring them to fruition.
He reported that Nigerian Content level in 2023 stood at 54 per cent, just like in 2022. The calculation is based on the Board’s monitoring and evaluation of industry activities.
According to him, “this performance is well above the minimum target of 47 percent Nigerian Content set for 2023 by the Board’s Project Management Office (PMO) just like we outperformed the 42 percent Nigerian Content target set for 2022 by achieving 54 percent Nigerian Content.”
He indicated that the top three performers of in-country spend are Shipping, Surveying/ Positioning services, and Inspection/ Testing and Certification with each at 100 percent NC level, while the bottom three performers are Modification and Maintenance at 26 percent NC level; Health, Safety and Environment at 31 percent NC level; and Materials and Procurement at 32 percent NC level.
He expressed concern that the stagnation of the Nigerian Content achievement at 54 percent raised questions on whether we had reached a point of stagnation or an inflection, leading to the decline in Nigerian Content level in the oil and gas industry.
The NCDMB boss, who was making his last PNC Keynote Address as the Executive Secretary of NCDMB reminded the top government functionaries and industry stakeholders that “getting the industry to this level of Nigerian Content is not a walk in the park,” and called on all stakeholders to “play their part to prevent the industry from rolling back to the dark days of implementing Nigerian Content as a token of consolation.
He cautioned that “The nexus between high Nigerian Content levels and the relative peace in the industry must not be lost on us,” noting that a “a lack of leadership backing at all levels opens the door for the practice to take the back seat.”
The Executive Secretary took the occasion to present what he termed “a reflection on the journey in the last seven and a half years of being in the saddle as the Executive Secretary.”
Citing data from the Board’s Nigerian Oil and Gas Industry Content Joint Qualification System (NOGIC-JQS), he said registered indigenous industry operators have increased from 53 in 2018 to 114 in 2023, while indigenous service companies increased from 8,000 to 11,000 within the same period. Also, individual registrations surged from 140,000 to almost 400,000.
Under one of five pillars of the Roadmap, namely, Technical Capability Development, are other major accomplishments, one of which is the increase in in-country fabrication capacity from 60,000 tons per year to 250,000 tons within the aforesaid period.
Engr. Wabote disclosed that eight industrial parks being developed by the Board to support manufacturing and assembly of equipment and input materials required in the industry are at various stages of execution. He reported that the Nigerian Oil and Gas Park Scheme (NOGaPS) at Emeyal-1, in Bayelsa State, and a similar Park at Odukpani in Cross River State are due for commissioning in the first half of 2024.
In a goodwill message, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, commended the NCDMB for its outstanding performance in local content implementation, and for the ongoing PNC Forum.
He assured the industry stakeholders that the Federal Government is committed to promoting cleaner, more sustainable practices within the energy sector, even as the country continues with hydrocarbon extraction.
The Minister of State for Petroleum Resources (Oil), Senator Lokpobiri was represented at the PNC by the Permanent Secretary in the Ministry, Ambassador Gabriel Aduda. He said Nigeria aligns with the global push for environmental stewardship and would explore all means of making production processes conform to cleaner technologies.
While drawing attention to the theme of the Forum, “Deepening Nigerian Content Amidst Divestments, Domestication and Decarbonisation,” the Minister called on stakeholders to “embrace the challenges that have been posed by divestment to actively promote domestication and steadfastly pursue the path of Decarbonization.”
The Bayelsa State Governor, Senator Douye Diri, who was represented by the Secretary to the State Government, Alabo Gideon Ekeuwei, lauded the NCDMB and its Management for extraordinary successes and charged participants to explore avenues for collaboration, joint ventures, and partnerships that will help Nigeria to fully harness Nigerian Content potentialities.
