Nigeria has retained about N36.67 trillion from the oil industry spend over the past 11 years through the implementation of the local content policy. The policy has also led to the creation of some 50,000 jobs for Nigerians.
The implementation of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act is expected to lead to retention of more than N54.2 trillion and creation of 300,000 jobs under a 10-year plan ending 2027.
Data provided by the Nigerian Content Development and Monitoring Board (NCDMB) at the weekend indicated that the NOGICD Act, which was enacted in 2010, has raised Nigeria’s annual local content retention from near zero prior to the Act to more than $8 billion from the annual oil industry spend of $20 billion, an annual average retention of 40 per cent. This is equivalent to N36.67 trillion at the current exchange rate.
Under a 10-year plan ending 2027, NCDMB plans to increase Nigeria’s local content retention to 70 per cent, equivalent to $13 billion of the estimated average yearly oil industry spend of $20 billion or $130 billion over the period, amounting to N54.2 trillion at the current exchange rate.
Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Simbi Wabote, who provided a scorecard of the NOGICD Act at a media parley at the weekend, said the economy has benefited remarkably from the content implementation as the local economy, which used to retain little or nothing from the yearly oil industry spend of $20 billion before the NOGICD Act, 2010 is now able to retain more than $8 billion in-country per year.
According to him, the level of the Nigerian content in the oil industry had hovered around five per cent before the enactment of the NOGICD Act in 2010 but focused implementation of the content law resulted in an increase to 26 per cent in 2016 and 42 per cent as at last December.
Wabote explained that NCDMB had launched the Nigerian Content 10-Year Strategic Roadmap in 2017, with a target to achieve 70 per cent Nigerian content by 2027. As part of this goal, the board would catalyse the creation of 300, 000 direct jobs in the oil and gas industry and linkage sectors, enable the retention of $13 billion out of the estimated annual $20 billion spend in the oil and gas industry and establishment of major fabrication yards and manufacturing hubs in-country.
He added that the improvement in local retention also underscored the development of critical capacities and assets by local oil and gas service companies and increased domiciliation and domestication of industry operations.
He outlined that Nigeria has also moved from near zero participation in the operations side of the oil and gas sector to the point that indigenous operators are now responsible for 15 per cent of oil production and 60 per cent of domestic gas supply.
According to him, other major accomplishments of Nigerian content implementation include the establishment of two world-class pipe mills and five impressive pipe coating yards, the ability of Nigerian firms to fabricate more than 250,000 tonnes of steel per year and ownership of more than 40 per cent of marine vessels used in the oil and gas industry by Nigerians.
He noted that more than 10 million training manhours have been delivered through NCDMB’s human capacity development programmes, pointing out that it was no surprise that indigenous workforce was able to sustain oil production at the peak of the COVID-19 pandemic lockdown.
Providing details of the NCDMB’s provision of credit facilities to the oil and gas industry, Wabote said NCDMB had inaugurated a $50 million Nigerian Content Research & Development Fund to drive basic research, commercialisation of research breakthroughs, establishment of research centers of excellence, and to sponsor university endowments.
“The Board floated a $50 million special loan product for women in the oil and gas business to enable empowerment of the womenfolk in the industry and established another $30 million 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,” Wabote said.
He announced that NCDMB recently secured the approval of its Governing Council to set up a $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. Beneficiaries of the NOGAPS fund would have to be engaged in the manufacturing of equipment components used in the oil and gas industry and linkage sectors.
He urged the media to continue to advocate for the implementation of the local content policy in all spheres of the Nigerian economy noting that COVID-19 pandemic made humanity to realise that every economy needs to develop local capacities and capabilities in the core sectors, hence, all hands must now be on deck to push the local content narrative.
In his remarks, Manager, Corporate Communications, Nigerian Content Development and Monitoring Board (NCDMB), Mr. Esueme Kikile noted that media practitioners are key partners in the implementation of the NOGICD Act and their role was clearly spelt out in section 70 (n) of the Nigerian Content Legislation.
He further solicited the support of senior media practitioners to curb the incidence of fake news and libelous publications being perpetrated by some organisations.
He assured the media of the NCDMB’s continuous partnership and support of their operations and advancement of the national economy.