February 18, 2022

In-country value retention up from 26% in 2016 to 42% in 2022

Indigenous companies now responsible for 15% of oil production; 60% of our domestic gas supply

Over 50,000 direct jobs have been created

Mr. Simbi Wabote, the Executive Secretary of the Nigerian Content Development and Management Board (NCDMB) says through the Nigerian Content Act and the establishment of the Board, Nigeria has achieved an increase of in-country value retention from 26% in 2016 to 42% in 2022.

Wabote who spoke at a breakfast meeting with the Guild of Corporate Online Publishers (GOCOP) in Lagos, Thursday,  said Nigeria has moved from near zero participation in the oil and gas sector to the current status where indigenous operators such as SEPLAT, AITEO, EROTON, and others are now responsible for 15% of our oil production and 60% of our domestic gas supply.

“Before the Act, we had annual spend of $20 billion, with little or nothing retained in-country. Today, we now spend more than $8 billion in-country per year. We now have two world-class pipe mills and 5 impressive pipe coating yards. More than 40% of marine vessels used in the oil and gas industry are now owned by Nigerians,” he said with obvious elation.

While reeling out landmarks attained in local content by the Board, he stressed that in fabrication, Nigeria can now handle fabrication of more than 250,000 Tonnes per annum. He listed other achievements to include:

• Over 10 million training manhours have been delivered via our Human Capacity Development Programs. No surprise that our indigenous workforce was able to sustain oil production at the peak of the COVID-19 pandemic lockdown.
• Over 50,000 direct jobs have been created on the back of the implementation of the NOGICD Act.
• Completion and commissioning of our 17-storey headquarters building – the Nigerian Content Tower in Yenagoa, complete with a 1,000-seater conference auditorium and multi-level car park.
• Completion of 10MW power plant for the supply of electricity to the Nigerian Content Tower and the industrial park in Bayelsa State.
• Completion and commissioning of the 5,000bpd Waltersmith Modular Refinery at Obigwe, Imo State; the refinery is currently in operation with the products completely sold out.

Others are:

Launched the $350million Nigerian Content Intervention Fund managed by the Bank of Industry and NEXIM Bank for single digit loans for Asset Acquisition, Manufacturing, Loan Refinancing, Working Capital and Loan for Women in Oil and Gas.

The only infrastructure in Africa for FPSO integration is available in Nigeria. The Egina FPSO which is the largest in the world was integrated at the SHI-MCI Yard in Lagos.

Completed GSM training scheme for about 4,000 trainees in Kano, Bauchi, Yobe, Kaduna, and Cross River States as part of development of linkage sectors.

Completed the upgrade of two (2) Vocational Technical Colleges in Akwa Ibom and Enugu states.

We launched NOGTECH HACKATHON and ENACTUS STIC to nurture innovation amongst our young minds.

NCDMB inaugurated a $50million Nigerian Content Research & Development Fund to drive basic research, commercialization of research breakthroughs, establishment of Centers of Excellence, and to sponsor university endowments.

The Board floated a $50m special loan product for women in the oil and gas business to enable empowerment of the womenfolk in the industry.

We also established another $30m Working Capital Fund to support oil and gas service companies. Both the Women and Working Capital funds are managed by Nexim Nigerian Export-Import Bank.

Last Thursday, the Board secured the approval of its Governing Council to set up a USD$50 million fund for NOGAPS Manufacturing Product Line, to be dedicated to companies that would operate in the Nigerian Oil and Gas Parks, being constructed by the Board in Bayelsa and Cross River States. The beneficiaries would engage in the manufacturing of equipment components used in the oil and gas industry and linkage sectors.

Capacity Development Initiative for the Completion of the Block Tower and Workshops in the PTDF Skills Development Center at Omagwa, Port Harcourt, Rivers State.

The level of Expatriate Quota has continued in a downward trend due to our stringent monitoring activities and collaboration with the Ministry of Interior. We continue to utilize the Exchange Program and the Understudy Program under Expatriate Quota regime to develop required skills in the industry.

Construction of oil and gas industrial parks spread across six (6) states complete with the provision of infrastructure and utilities to enhance local manufacturing.

Partnership for the local manufacturing of 1.2million composite LPG cylinders per year with the 1st phase scheduled for commissioning in 2022.

Partnership for the establishment of additional modular refineries in Bayelsa and Edo states.

Partnership for the construction of 300MMscfd gas gathering hub for gas supply into the OB-3 pipeline in Edo State.

Partnership to deepen LPG utilization in the North with the roll-out of LPG bottling plants and depots in ten (10) Northern States of Kaduna, Bauchi, Katsina, Kano, Nasarawa, Niger, Plateau, Gombe, Zamfara, Jigawa and Abuja.

Partnership to establish base oil manufacturing plant in Omagwa, Rivers State.

We now boast of very high engineering design capacity as Nigerian companies now have the required skills to do conceptual, FEED, and detailed engineering designs.

We now have capacity to manufacture low, medium, and high voltage cables and paints that can match any standard or quality in any part of the world.

According to Wabote,  “our plan in NCDMB is that by 2027, we will ensure 70% Nigerian Content; creation of 300, 000 direct jobs; retention of $13Bn of the estimated $20Bn spend in the oil and gas industry; ensure the domiciliation of major fabrication yards and manufacturing hubs in-country.”