Tag: NCDMB

The Nigerian Content Development and Monitoring Board (NCDMB) has okayed ₦15billion funding for Contractors Financing Scheme. The board has also scaled up single obligor limit for the initiative from N20 million to N100 million.

The initiative is expected to address critical challenges faced by local contractors’ limited access to funding for contracts awarded by oil and gas companies.

The Executive Secretary of the board, Engr. Felix Omatsola Ogbe, who declared this at the opening of the Practical Nigerian Content (PNC) 2024 Forum, in Bayelsa, with the theme: “Defining the Next Frontier for Nigerian Content Implementation” assured that efforts to increase what he described as the ‘spirit of collaboration and resilience that has brought us this far’.

Ogbe said the Nigerian Content Development indices had increased from 26per cent in 2016 to 56per cent by 2024.

While listing key achievements of the board, Ogbe said: “Our enabling law, the Nigeria Oil and Gas Industry Content Development (NOGICD) Act, 2010, charges the Board with a clear mandate: to build the capacity of Nigerian companies and individuals to actively participate in the oil and gas industry. To fulfill this mandate, in 2017, the Board launched the 10-Year Strategic Roadmap, which is built on five strategic pillars and supported by four enablement.

The Executive Secretary highlighted some milestones achieved in the last seven years and unveiled new initiatives that would take the board closer to its 2027 target.

The achievements, he said included the commissioning of Amal Technologies in Idu, Abuja; and the Kwale Gas Gathering facility in Delta State. Approval of 312 Nigerian Content Plans, and 402 Nigerian Content Compliance Certificates (NCCCs) were issued. Due to the new PCAD contracting guidelines which have reduced the touchpoints from 9 to 5, the contracting cycle has been reduced to six-months, he stated.

On strategic partnerships, the Executive Secretary listed feats to include the unveiling of Bell Oil and Gas’ 50,000 metric-ton integrated Oil Country Tubular Goods (OCTG) facility at the Lekki Free Trade Zone, commissioning of 10,000 MT capacity galvanizing plant by Daewoo, establishment of the Nigeria Oil and Gas Park Scheme (NOGaPS) in Bayelsa, Cross River, and Akwa Ibom states.

Commissioning of a 300 MMSCFD gas gathering and injection facility in Kwale, Delta State, in partnership with NedoGas,  commissioning of a 180-metric-ton LPG filling plant in Kaduna, in partnership with Butane Energy and a 100-metric-tonne LPG storage and bottling plant in Katsina State.

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For Human Capital Development (HCD) initiative, Ogbe said: “We have initiated cadetship training for 63 cadets on foreign-going vessels in partnership with Shell and PETAN launched an internship Program, which trained 49 graduate engineers, geologists, and geoscientists. Commenced the NLNG Train 7 Project Nigerian Content Human Capital Development (NC-HCD) Basic Training for 331 Nigerians.

“At the Federal University of Owerri (FUTO) in Imo State, we completed and commissioned an Engineering Design Studio and Information Hub in collaboration with NLNG. Similarly, we completed and commissioned an E-Library at the Niger Delta University in Amassoma, Bayelsa State, in partnership with SPDC and its JV partners.”

Speaking on the ‘Back to the Creek,’ an initiative that focuses on equipping youths in host communities with the skills needed to meet industry demands, directly supporting the local content drive, Ogbe said that this initiative aligned closely with the mandate of President Bola Tinubu, to create the enabling environment for businesses to thrive.

This initiative, he said would be implemented in three phases, the improvement of primary education infrastructure; the enhancement of secondary education and the provision of scholarships and facilitating employment opportunities for top-performing students from oil-producing communities.

The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Mr. Felix Omoshola Ogbe, has said the board had floated a $40 million Women in Oil and Gas Intervention Fund in partnership with the Nigerian Export-Import Bank (NEXIM).

He said the fund aims to empower women-led businesses and increase gender diversity in the nation’s oil and gas sector.

Ogbe announced the establishment of the fund at a meeting on strengthening partnership between the NCDMB and the Executive Secretary of the Nigeria Extractive Industries Transparency Initiative (NEITI), Dr. Orji Ogbonnaya Orji.

A statement yesterday in Abuja by NEITI said the Women in Oil and Gas Intervention Fund specifically targets businesses where women hold a minimum of 51 per cent ownership and occupy significant roles within management.

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Ogbe outlined the eligibility criteria for accessing the fund, including 51 per cent women shareholding in the company; a minimum of 50 per cent of management positions held by women; companies with female CEOs and at least 40 per cent female representation in management.

The intervention fund will also support start-ups and established companies, enabling their growth across various sectors, including manufacturing, oil services, environmental management, leasing, logistics, catering, and training.

The support will help women-led companies play a more active role across the oil and gas value chain, the statement said.

NEITI’s recent reports said the NCDMB recorded $613.12 million in levy collections in 2022, an 819.45 per cent increase over the 2021 figure of $66.68 million. Although the 2023 levy figure was lower by 76.3 per cent ($146 million), it underscored the agency’s ongoing commitment to transparency, accountability, and job creation within Nigeria’s borders.

The Nigerian Content Development and Monitoring Board (NCDMB) has concluded plans to launch new Contracting Cycle Guidelines for the oil and gas industry in compliance with the Presidential Directives on Local Content announced by President Bola Ahmed Tinubu in March to accelerate oil and gas contract timelines, incentivise investments in the sector and increase Nigeria’s crude oil production.

The Executive Secretary of the NCDMB, Engr Felix Omatsola Ogbe announced this at the two-day Contracting Cycle Guidelines Sensitisation Workshop organized in Lagos by the Project Certification and Authorization Directorate (PCAD) of the Board for international and indigenous operating oil and gas companies and their service counterparts.

The workshop provided a platform for NCDMB to explain the provisions of the Guidelines and how it would implement them in alignment with the Nigerian Oil and Gas Industry Content Development (NOGICD) Act and the Presidential Directives.

Represented by the Director, Project Certification and Authorisation, Engr. Abayomi Bamidele, the Executive Secretary emphasized that NCDMB is a business enabler hence the decision to get stakeholders’ feedback before finalising and launching the guidelines at the forthcoming Practical Nigerian Content Workshop slated for December 3-5 at the Nigerian Content Tower, in Bayelsa State.

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 To further assist the companies, he promised that NCDMB would convene a technical workshop in the first quarter of 2025 to train personnel of operating and service oil and gas companies on how to efficiently complete various technical documents utilized in oil and gas contracting process.

The three Presidential Directives are the Presidential Directive on Local Content Compliance, Presidential Directive on Reduction of Petroleum Sector Contracting Cost and Timelines and Presidential Directive on Oil and Gas Companies (Tax Incentives, Exemption, Remission, etc).

Commenting on the objectives of the Presidential Directives, Ogbe canvassed that for Nigeria to deepen local content practice and grow the sector, it must eliminate premium margins charged by some service companies, stop frequent policy changes and ensure that final investment decisions (FIDs) are signed regularly, to catalyse new projects. He recommended that at least one or two FIDs should be signed at the annual oil and gas conferences, to create activities in the sector.

The Executive Secretary provided further details on the Presidential Directives and the Board’s actions, noting that the PD on Local Content Compliance addressed issues pertaining to NCDMB, while the PD on Reduction of Petroleum Sector Contracting Cost and Timelines referred to NCDMB and the Nigerian National Petroleum Company and its investment arm, the NNPC Upstream Investment Services (NUIS). He added that NCDMB is working to support oil firms to accelerate their projects and take advantage of the incentives provided by the PD on Oil and Gas Companies (Tax Incentives, Exemption, Remission, etc).

He informed that the PDs reduced the period for concluding oil and gas contracts from 180 days to six months, while it also revised the Contracting Timelines in the Memorandum of Understanding (MoU) the Board had signed with the Nigerian National Petroleum Company Ltd and international operating companies in September 2023 and reduced the number of days allotted to NCDMB on the cycle.

He pointed out that the Board was mandated to develop templates to collapse its touchpoints on the contracting cycle to enhance the business environment within the provisions of the law. Accordingly the Board has reduced its touchpoints from nine to five for open tenders and selective tenders, while retaining only four touchpoints for single source contract.

He stated that another goal of the Presidential Directive is to eliminate intermediaries with no demonstrable capacity and to develop structured processes to determine, verify and document in-country capacities and capabilities. He added that the Board has adopted robust pre-qualification and technical evaluation process, policy revisions to provide clarity on in-country value addition for OEM representatives and in-country capacity audit every two years.

Another objective of the PD is to target global benchmarks. For this, he noted that NCDMB was proposing the co-creation of tender cost templates/tariffs, the promotion of joint venture of local/foreign service companies, the adoption of robust waiver management system by the Board and conveyor belt of at least two final investment decision (FID) per year.

The workshop featured technical presentations and interactions and the participants thanked NCDMB for providing a platform for stakeholders to make constructive inputs into the industry’s operating guidelines.

The Nigerian Content Development and Monitoring Board (NCDMB) has partnered Triple Helix Nigeria (THN) to host the maiden edition of the SciBiz Annual Conference, 2024.

“Integrating Research Innovation and Policy: Triple Helix Pathway to a Digital Nigeria,” the event, slated for Abuja between 23rd and 25th October, brings together the academia, industry and government – known as the three arms of the Triple Helix – for the purpose of formulating strategies to bridge the gap between scientific discoveries and their practical applications in solving societal challenges.

The group noted that “The Triple Helix model had been a proven mechanism for fostering innovation ecosystems in advanced economies,” but that it has been largely lacking in Nigeria because of limited interaction among the three aforesaid arms, with the result that the potential synergy had remained untapped. 

The conference, which is being sponsored by the Nigerian Content Development and Monitoring Board (NCDMB), is seen as a strategic response to “the urgent need to strengthen innovations that convert research findings into marketable products and services, generate employment, and stimulate economic growth”.

Key programme elements, as announced, include Plenary Sessions, featuring expert keynote speakers from Nigeria and abroad; Panel Discussions in which leaders from the academia, industry, and government, would explore how to overcome barriers to research commercialisation and innovation in Nigeria, and Innovation Pitching Competition, to be conducted in collaboration with OxFounders, featuring presentation of projects undertaken by startups and innovators to potential investors and partners.

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Other key elements are Workshops and Breakout Sessions, involving discussion groups focusing on research funding, intellectual property management, and fostering entrepreneurial mindset in universities; Exhibition, a platform for innovators, start-ups, research institutions, and industries to showcase their products, services, and technologies to a diverse audience, and Diaspora Engagement for which a dedicated subcommittee is in place “to facilitate collaborations with Nigerian professionals to leverage global expertise for local challenges”.

Target audience for the conference are academics and researchers from Nigerian and international universities, representatives from industries, including start-ups and small and medium-scale enterprises (SMEs), government officials and policymakers in science, technology, and innovation sectors, investors and venture capitalists, international organisations and development partners, innovators, entrepreneurs, and students.

Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Felix Omatsola Ogbe has commended the significant Nigerian Content strides achieved in the Nigeria LNG Limited (NLNG) Train 7 Project.

Speaking during a visit to the NLNG six-train plant, Train 7 Project construction site, and the NLNG Shipping and Marine Services Limited (NSML) training centre, Maritime Centre for Excellence (MCOE) in Finima, Bonny Island, Rivers State, Ogbe emphasised the need for increased collaboration and advocacy for Nigerian Content in the oil and gas industry.

Ogbe was received by the Deputy Managing Director, Olakunle Osobu, General Manager of Production, Nnamdi Anowi, Train 7 Project Director, Engr. Ali Uwais, NSML Managing Director/CEO, Abdulkadir Ahmed and other senior management officials of the company.

The visit comes on the heels of a recent tour of BEAMCO Limited, where pumps and valves are locally assembled for the Train 7 Project, and the commissioning of the Daewoo Galvanising Plant at Abam-ama, Okrika, Rivers State.

The Executive Secretary highlighted how the Train 7 Project had significantly boosted local capacity through the production of ancillary components and accessories within Nigeria, contributing directly to the project’s successful execution. He commended the recent Presidential Directives on Local Content implementation, which mandate that contracts in the oil and gas sector be awarded exclusively to local companies with proven in-country capabilities, as instrumental to these achievements.

Reflecting on the progress made, Ogbe stated: “The accomplishments we are witnessing today at the NLNG Train 7 Project are a testament to the NLNG’s unwavering commitment to Nigerian Content. This project stands as a beacon of what we can achieve when we prioritise our local industries and talents.”

Speaking further, the executive director commended NLNG’s management for achieving 52 million man-hours on the Train 7 project with zero lost time injury (LTI). “We will support you to achieve everything you desire to accomplish for the overall development of Nigeria,” he said.

Ogbe also commended his immediate predecessor, Simbi Kesiye Wabote, for his immense contributions to the approval, take-off and success of the Train 7 project.

Commenting on the Maritime Centre for Excellence (MCOE), the executive secretary expressed the delight that it was the first training centre in Africa to receive accreditation from the UK Maritime and Coastguard Agency (UK MCA) to deliver and issue certificates for the STCW 2010 Electronic Chart Display and Information System (ECDIS) and Basic Liquefied Gas Tanker Cargo Operations courses.

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The MCOE, a maritime training and research facility, aims to enhance maritime expertise in Nigeria and the West African region. It currently hosts a specialised training programme for marine services providers in the upstream oil and gas sector, with the support of NCDMB.

In his comments, NLNG’s Deputy Managing Director, Olakunle Osobu, who represented Philip Mshelbila, NLNG’s MD/CEO, lauded the NCDMB’s unwavering support for the Train 7 Project, describing the partnership as a shining example of the public-private collaboration that can drive Nigeria’s industrial growth. He emphasised that NLNG’s Nigerian Content deliverables showcase the power of strategic collaboration and capacity building, aligning with the NCDMB’s broader objectives and contributing to national development goals.

Osobu further reiterated that Nigerian Content was not just a regulatory requirement for NLNG but a core business strategy. “We are committed to going beyond compliance, embracing Nigerian Content as a fundamental part of our vision of helping to build a better Nigeria,” he added.

He also highlighted the economic impact of the Train 7 Project, stating that the addition of Train 7 will expand Nigeria’s LNG production capacity from 22 Metric Tons (MT) to 30MT per annum, which will not only boost the nation’s economy by creating jobs and driving sustainable development but also reinforce Nigeria’s position as a formidable player in the global energy market.

The Nigerian Content Development and Monitoring Board (NCDMB) has retained its top ranking in business efficiency and transparency among ministries, departments and agencies (MDAs), as captured in the latest evaluative assessment by the Presidential Enabling Business Environment Council (PEBEC).

In the ‘2024 Half Year Transparency and Efficiency Compliance Report (January 2024-June 2024)’, released in Abuja by PEBEC, the Board scored 71.6 per cent in Efficiency Compliance and 100 per cent in Transparency Assessment, to emerge with an Overall BFA Performance score of 80.1 per cent.

The Overall Business Facilitation Act Performance of MDAs, as explained by PEBEC, is assessed “using an efficiency and transparency scale weighted at 70 per cent and 30 per cent, respectively.”

With the latest Report, NCDMB has retained the top ranking for 30 consecutive months, having first secured the coveted position in the January 2022-June 2022 review period and subsequently in the second half of that year and the 12 months of 2023.

Under the Efficiency Compliance Ranking, PEBEC focuses its evaluation on “adherence to service level agreements (SLAs), cost management, procedural efficiency, One Government directive, and instances of Default Approval as provided in the Business Facilitation Act, 2022”.

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For Transparency Ranking, the focus is on “how effectively MDAs-make essential information accessible to the public,” with particular emphasis on “clarity and completeness of published details on service level agreements, operating procedures, eligibility requirements, timelines and fees.” 

In a year-on-year overview, PEBEC noted with satisfaction that “The MDAs have made progress in adhering to service level agreements and advancing digitization efforts,” even though “bureaucratic challenges and issues with consequence management persist.”

The Council states further that “The outlook for efficient public service delivery remains positive, given this administration’s commitment to creating a conducive environment,” and that “There has been significant improvement in the overall rankings, with over 60% of MDAs now scoring above average, compared to the previous report above-average scores.” 

A total of 40 MDAs, categorised as ‘PEBEC Priority MDAs,’ were covered in the ‘2024 Half Year Transparency and Efficiency Compliance Report.’ The Standards Organisation of Nigeria (SON), which scored 78.2percent, and the Nigeria Agricultural Quarantine Service (NAQS) 74.8 per cent, were second and third, respectively, in the ranking.