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  • NCDMB staff redeployment:  Lokpobiri’s dangerous intervention

    NCDMB staff redeployment:  Lokpobiri’s dangerous intervention

    • By Boniface Chukuemeka

    A very troubling news emanated from the oil and gas sector on Wednesday last week, in which it was reported that the Minister of State Petroleum Resources (Oil), Senator Heineken Lokpobiri and the Executive Secretary of the Nigerian Content Development Board (NCDMB), Felix Ogbe, are currently at loggerheads over staff redeployment.

    As a matter of fact, one would have dismissed the report as mere social media gossip, but it was embarrassing to find out that Lokpobiri actually wrote a letter to Ogbe, nullifying the redeployment of staff at the NCDMB. The minister didn’t stop at that; he allegedly went further to ensure that all the staff were copied in the email directing the executive secretary to rescind the decision. What a shame and complete display of pettiness!

    The situation is an embarrassment to the government and an assault on corporate governance. It is also detrimental to the ambitious plans of the administration to restructure and reposition the oil sector for significant growth, as exemplified by the president’s signing of executive orders on oil and gas reforms.

    More so, this will not only undermine the authority of the executive secretary, but has opened the window of opportunity for all manner of indiscipline and bad blood in the organisation, which no doubt would negatively affect productivity. The NCDMB is one of the few government agencies that have excelled because of its independence and its steadfast commitment to the growth of local content in Nigeria’s oil and gas industry. It has remained stable and over the years enjoyed the benefit of professionals at its leadership as executive secretary, with little or no interference.

    Regrettably, with something as little as staff redeployment, Lokpobiri has shown his hands, signalling that he may not have good intention for the organisation.

    Lokpobiri, in the letter which is now in the public domain, is accusing the executive secretary of flouting extant rules. According to the minister, no part of the NCDMB Act empowers the executive secretary to redeploy or appoint management staff.

    He argued that the NCDMB management is answerable to the board led by him (Lokpobiri), explaining that Ogbe therefore does not have the power to redeploy, appoint or employ management staff.

    The minister’s letter reads: “The personnel announcement signed by the Executive Secretary (ES) NCDMB dated 4th March 2024 with Ref No. NCDMB/ES/1/001/03/24 redeploying some management staff of the board refers.

    “It has become imperative to empathically state that the Nigeria oil and gas industry Content Act 2010 does not empower the executive secretary to redeploy or appoint management staff.

    “Section 8 (2) (b) of the Act states ‘that the Executive Secretary is responsible to the Council for the execution of the policies and the administration of the daily affairs of the board,” part of the letter read.

    In the official communication, Lokpobiri urged those impacted by the decision of the executive secretary’s decision to redeploy and appoint to maintain status quo.

    “The ES therefore does not have the power to redeploy, appoint or employ management staff. Accordingly, the executive secretary does not have the authority to overturn deployments/redeployments made by the minister and the chairman governing council of the board.

    “Furthermore, Section 101 of the Act states that: ‘The minister shall make regulations generally for the purpose of carrying out or giving effect to the provisions of the Act.

    “The executive secretary is strongly advised not to usurp the powers of the governing council on any subject matter. In the light of the above, the redeployments announced by the ES to all staff on March 4, 2024 is hereby overturned,” Lokpobiri wrote.

    It is however, not clear if Lokpobiri consulted President Bola Tinubu, who is the substantive Minister of Petroleum before taking the action.

    Indeed, the NCDMB was established to drive the development of Nigerian content in the oil and gas industry by expanding the footprint of Nigerian-led initiatives. This includes the development of the local supply chain through direct capacity development interventions and support for investors.  By encouraging a balanced, market-friendly approach to local content, the agency has since its establishment, fostered a generation of African entrepreneurs.

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    It also initiated strategic national programs to build capacity and locate industry activities within Nigeria.  The NCDMB’s success over the years includes the establishment of a number of highly impactful funds. With the creation of the USD350 million Nigerian Content Intervention Fund (NCIF,) for example, the NCDMB was able to provide affordable credit for Nigerian oil and gas service companies and local contractors. It also launched a fund to drive local manufacturing of oil and gas industry equipment and components, a research and development fund to solve energy industry problems, and a working capital fund to help oil and gas companies overcome the damaging effects of the COVID-19 pandemic.

    In addition, its $40 million Women in Oil and Gas Intervention Fund, created in partnership with the Nigerian Export-Import (NEXIM) Bank helped to benefit oil and gas firms where women hold majority shares or manage the companies. It also ensured increased indigenous participation in oil and gas contracts, and drove investments in local manufacturing and skills development, just as it forged strategic collaborations with international oil companies, universities, and training institutions to enhance local capacity building and technology transfer. And he implemented initiatives to improve transparency in NCDMB operations and combat corruption within the oil and gas sector.

    Interestingly, the reasons cited by the minister for his action are also being challenged by stakeholders who described it as a narrow and self-serving interpretation of the enabling legislation.

    The Act which empowered previous heads of the institution to make appointments similar to the one made by Ogbe states that the executive secretary as the chief executive and accounting officer is “responsible to the (Governing) Council for the execution of the policies and the administration of the daily affairs of the Board.”

    It was clearly silent on redeployment and no part of it talks about getting approval from the minister or the Governing Council for redeployment of staff.

    Lokpobiri must understand that he is trying to set a bad precedent in an agency that has over the years been focused on delivering its mandate. He must understand that with the action he has taken, he has opened the floodgates for indiscipline, unruly behaviour by civil servants; he is encouraging disorderliness and disrespect to the rules and regulations of the organisation and a situation where staff would now seek to place their personal desires above the overall interest and needs of the organisation.

    • Chukuemeka is a public policy analyst.

  • NCDMB hosts capacity building workshop for stakeholders nationwide

    NCDMB hosts capacity building workshop for stakeholders nationwide

    Oil and gas industry stakeholders and leading academics have begun a three-day Research and Development Zonal Workshop at the Niger Delta University (NDU).

    The workshop sponsored by the Nigerian Content Development and Monitoring Board laid special focus on needs-driven research and deepening of collaboration and linkages.

    Scheduled to be hosted in the six geopolitical zones of the country by NCDMB Centres of Excellence in six universities, the workshop is also intended to enhance capacity building of research directors and lecturers, particularly in writing and reading compelling research proposals.

    Read Also: Senate queries NCDMB’s $400m intervention funds

    In a keynote address at the Workshop, the Executive Secretary of the NCDMB, Felix Omatsola Ogbe, noted that the Board was empowered by Sections 36-39 and 70 (m) of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, 2010, to “coordinate and superintend over research and development towards the further attainment of the goal of developing Nigerian content in the Nigerian oil and gas industry.”

    According to him, “critical gaps hampering the research climate in our sector,” notably, “lack of research infrastructure, funding and weak commercial frameworks,” had been identified in the Board’s 10-Year Strategic Road Map, which had been developed in 2017. Appropriate measures to close such gaps were also identified.

    He noted that “the establishment of Research Centres of Excellence in the six geopolitical zones of the country and establishment of the R&D Fund to stimulate research in the oil and gas sector” were some of the measures recommended to remedy the identified gaps.

  • Senate queries NCDMB’s $400m intervention funds

    Senate queries NCDMB’s $400m intervention funds

    The Senate Committee on Local Content has queried the management of the Nigerian Content Development and Monitoring Board (NCDMB) over $400 million in intervention funds said to have been kept in banks and other financial institutions for over many years without disbursement.

    The Chairman of the Committee, Senator Natasha Akpoti-Uduaghan asked the NCDMB to explain the development during an interactive session with the agency on Wednesday evening in Abuja.

    According to Akpoti-Uduaghan, out of the said intervention funds, $30 million was earmarked for capacity building in oil and gas while $20 million was meant for women in oil and gas in the country.

    She another $50 million of the fund was meant for research and development in oil and gas industries which is said to be domiciled in the Central Bank of Nigeria (CBN).

    She sought to know why the funds were lying fallow without Nigerians being allowed to access them.

    She also urged the NCDMB to make the funding opportunities accessible to ordinary Nigerians.

    These funds, according to her, will attract oil and gas equipment manufacturers to Nigerian Oil and Gas Parks Scheme (NOGaPS) facilities, as well as increase access to affordable finance by the manufacturing entities.

    She asked the board create awareness among Nigerians who are not aware of the availability of the fund how they can access it.

    Read Also: NCDMB, Chevron pledge accelerated projects approvals

    She directed the NCDMB to urgently submit the audited account of the agency from 2021 to 2022, the budget performance of 2022 and 2023, and the nominal roll of the agency.

    The Chairman of the panel insisted that the Committee was not out to antagonize the agency but to collaborate with it to discharge its mandate to the benefit of Nigerians especially women.

    Responding, the Executive Secretary of NCDMB, Engr. Felix Ogbo, said the $300 million meant for the Nigerian Content Intervention Fund was still domiciled in the Bank of Industry (BoI).

    According to Ogbo, the entire $300 million has been disbursed.

    He added that the total amount disbursed so far amounts to $330million, explaining that as beneficiaries pay the money would be given to others who want to borrow.

    “Bank of Industry carries out quarterly monitoring to ensure the companies use the loan for the purpose it was meant for. We also carry out joint annual project monitoring with the Bank of Industry,” Ogbo added.

    He NCDMB pledged to supply all documents requested by the committee before its next interactive session.

  • NCDMB, Chevron pledge accelerated projects approvals

    NCDMB, Chevron pledge accelerated projects approvals

    The Nigerian Content Development and Monitoring Board (NCDMB) has restated its commitment to accelerated approvals of requests and documents submitted to it by operating oil and gas companies. The goal is to ensure speedy development of oil and gas projects and contribute to increased oil production and improved national economy.

    The Executive Secretary NCDMB, Engr. Felix Omatsola Ogbe gave the assurance at the Nigerian Content Tower, Bayelsa State when he received senior officials from Chevron Nigeria Limited led by the Deputy Managing Director, Cosmas Iwueze.

    Ogbe conveyed the Board’s willingness to improve on the timelines set by the Service Level Agreement (SLA) instituted by the Board, Nigerian National Petroleum Company Ltd (NNPC Ltd) and international oil companies for shortening the contracting cycle for oil and gas projects.

    He reiterated his proposal for the setting up of technical working groups (TWGs) between the representatives of the NCDMB and respective international oil firms. The working groups could meet monthly or quarterly to evaluate the companies’ expectations from the NCDMB on their projects.

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    The intent, he explained is “to resolve contentious issues, close all the gaps and come to an agreement before the official correspondences are received. That will ensure quick turn-around and approvals will be dealt with quickly and that will help to cut downtime”.

    Emphasising the need for all oil and gas companies to comply with the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, the Executive Secretary promised that the Board will accede to strong urgent requests from companies to avoid delays that could cause costs overruns, impact negatively on oil and gas operations and the economy at large.

    He encouraged the companies to see NCDMB as partners in progress, saying: “We want to create the enabling environment that will minimize conflicts with international oil companies (IOCs) and attract investments into the sector. We want to create employment opportunities for our youths and help achieve the economic objectives of President Bola Tinubu. We want to make international oil companies comfortable and reverse the exit of foreign investors because they create jobs, and we need all hands on the deck.”

    The Executive Secretary who said he had long and successful career with Chevron Nigeria added the hallmark of the company is teamwork. He noted that NCDMB operates with the same core value, hence the Board is determined to support oil companies to accomplish their operational goals. “We have to make sure that you succeed otherwise we will not be successful,” he stated.

    The Executive Secretary confirmed that NCDMB under his watch will not emphasise the use of sanctions, rather will seek to dialogue with companies to achieve win-win situations. “We will be flexible regarding your requests, but we all need to have open minds and look at the critical paths that will ensure that we make progress and produce effectively,” he said.

    Contributing, the Director, Planning Research and Statistics, NCDMB, Isaac Yalah, commended Chevron Nigeria for supporting the Board’s development of the Nigerian Content Research Centre of Excellence at the Federal University of Technology, Akure (FUTA), Ondo State. He affirmed that the Board will continue to collaborate with Chevron on other projects and would address any issues relating to requests for expatriate quota approvals.

    Iwunze in his response commended the Executive Secretary for adopting the mantra of collaboration and pushing to increase crude oil production in Nigeria. He highlighted the importance producing crude oil at competitive costs, noting that the primary aspiration of oil companies and the Federal Government is to ramp up Nigeria’s crude oil production volumes and shore up the revenue accruing to the national coffers.

    Iwunze emphasised the need to incentivise investments in the oil and gas sector. He explained that international oil and gas companies in Nigeria compete for capital with their sister operations in other oil producing nations.

    He said: “The capital we need for big oil and gas investments is domiciled with global investors. We need to always present Nigeria as an investor friendly destination where people can come and do business.”

    He also confirmed that the company was working on some major projects, relating to deepwater and Escravos gas-to liquids (EGTL) and he looked forward to receiving the Board’s support and collaboration when the projects come for consideration and approvals.

  • NCDMB seeks deepened partnership to meet economic targets

    NCDMB seeks deepened partnership to meet economic targets

    The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Felix Omatsola Ogbe has called for deepened partnership with key agencies of the Federal Government to achieve the economic aspirations of President Bola Tinubu’s administration adding that cooperation and teamwork were key to accomplishing any noble objective.

    He made this call during the visit the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Engr. Gbenga Komolafe and the Commissioner for Insurance of the National Insurance Commission (NAICOM), Sunday Olorundare Thomas at their respective offices in Abuja.

    The visit by the new executive secretary was aimed at familiarizing himself with chief executives of institutions that are represented on the NCDMB’s Governing Council as well as exploring areas of collaboration.

    Ogbe pledged to work closely with NAICOM to review and operationalize the insurance services regulations jointly issued by both agencies in June 2022, to get Nigerian oil and gas companies to patronize local insurance firms and retain spend in the economy.

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    The Commissioner for NAICOM congratulated the Executive Secretary on his appointment, noting that he would be building on the solid foundation laid by his predecessors. He described NCDMB as a formidable institution and commended the founding fathers of the Board for their foresight in creating such an important agency. He also lauded the former Executive Secretaries of the NCDMB for their innovative projects and achievements while in office that added value to the economy.

    The Commissioner described insurance as the oxygen of business operations. He expressed the concern that the insurance services regulations that were signed by the commission and NCDMB were yet to be implemented. He requested the Executive Secretary to address the challenges, hinting that implementing the regulations would bring the needed changes in the insurance subsector of the oil and gas industry before being extended to other key sectors of the economy.  

    At the NUPRC, the Executive Secretary reiterated the need for teamwork and partnership amongst various agencies under the Ministry of Petroleum Resources, to sustain the growth of the Nigerian oil and gas industry. He hinted that collaboration would create an enabling environment that would attract investments and new projects into the sector, helping to create employment opportunities for youths and address insecurity in the polity.

    While noting that Local Content development would be stunted if projects and investments in the oil and gas sector did not flourish, the Executive Secretary suggested that NCDMB and NUPRC should organize workshops to examine and resolve concerns identified by investors as obstacles to investments and new projects. He hinted that investment decisions by international oil and gas companies are often affected by their assessment of their Return on Investments (ROI).

    In his comments, the Commission Chief Executive of NUPRC congratulated the Executive Secretary on his appointment, noting that the industry was pleased to have a person of his pedigree as the new helmsman of the NCDMB.

    Komolafe highlighted the important role of the NCDMB in the operations of the upstream sector of the petroleum industry and commended the new Executive Secretary for seeking closer cooperation among the agencies.

    He described the move as beneficial, especially at a time when every hand is on the deck towards increasing Nigeria’s crude oil production, earning higher revenue for the nation, and reviving the economy. 

    He noted that the Nigerian upstream sector was facing severe pressures because of the low crude oil production and lack of investment in recent years. He pointed out that the energy map of the world had changed considerably with the emergence of several new oil-producing countries.

    This situation he said, had induced a high level of competitiveness for investment capital, stressing that strategic actions must be taken to make the Nigerian environment investor-friendly. According to him, “we must vacate entry barriers for investment. This is common logic when there is high competition. We need to work together to lower barriers and do everything possible to motivate investment”.

    He assured that the NUPRC would partner closely with the NCDMB to achieve the programmes it had planned for 2024.

  • Nigerian Content Development & Monitoring Board and its new leadership

    Nigerian Content Development & Monitoring Board and its new leadership

    By Adekunle Ologunlado

    Nigerians should commend President Bola Tinubu for scouting for a seasoned professional to help stabilise the Nigerian Content Development & Monitoring Board (NCDMB) at this critical time because an effective NCDMB will in the long run contribute to the needed economic growth, by promoting local production through partnership.

    Charged with the duty of institutionalising local content in Nigeria’s oil and gas sector, the new Executive Secretary Engr. Felix Omatsola Ogbe who hails from Warri, Delta State is an experienced Russian-trained engineer with Masters Degrees in Civil Engineering and Construction Management respectively.

    With over 38 years of experience in oil and gas operations in Nigeria and local content operations, onshore and offshore, LNG, water drilling, treatment and storage facilities, and civil, building, and dredging engineering, among others, Engineer Ogbe worked at Chevron Corporation, where he held top positions in Nigeria and overseas, before retiring voluntarily in June 2014, to venture into private business.

    While at Chevron Nigeria Limited, Ogbe served as Construction Services Group Superintendent (Escravos-Warri) and was responsible for field construction services requirements to support the company operations.

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    He equally served as Offshore Projects Manager at Chevron. In this role, he was responsible for all the Engineering designs, Planning and execution of maintenance works, and installation of new facilities to support productions in Chevron Nigeria Limited offshore locations.

    Other positions he held in Chevron include Construction Manager (Lagos and Escravos-Warri), Escravos Gas Project (EGP-3B), where he was responsible for the fabrication and installation of various sizes of pipelines/flowlines in offshore and onshore locations in the Niger Delta.
    In his early years, he served as Construction Superintendent responsible for Engineering Designs and Construction requirements and also worked as the Cost Control Engineer, in addition to being responsible for all Facility Engineering Division Projects’ cost controls, budgeting, and cash calls.

    His exploits were not limited to Nigeria and Africa, as he also operated in the large port city of Busan in South Korea, as well as the United States of America, where he worked in the Conceptions, Engineering Designs, Project and Construction Management to Commissioning Phases of projects.
    Ogbe is a member of the Nigerian Society of Engineers, the Council of Registered Engineers, and American Institute of Civil Engineers.

    Ologunlado write from Lagos

  • NCDMB’s support for oil, gas, services companies coming

    NCDMB’s support for oil, gas, services companies coming

    The Nigerian Content Development and Monitoring Board (NCDMB) has assured that patronage and deployment of indigenous oil and gas service companies would remain of strategic importance to take advantage of the massive development of operational capabilities since the implementation of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act over the years.

    Speaking in Port Harcourt, the Rivers State capital at the load-out ceremony of OML 100 skidded ejector package, fabricated and assembled by an indigenous company, Wilkriss Nigeria Limited, for residual gas recovery, the Director, Monitoring and Evaluation at the NCDMB, Abdulmalik Halilu, expressed the Board’s excitement to see companies make significant breakthroughs in the fabrication space.

    He commended TotalEnergies and its Joint Venture (JV) partners, sponsors of the project for providing an opportunity for capacity utilisation by an indigenous company, just as he lauded Wilkriss Limited for the top-notch quality in project execution.

    According to the NCDMB Director, the project was significant in two respects. “First is the output, which is the skid itself, being able to deliver the right quality on schedule.” He pointed to metrics he had observed, which he described as quite good, noting that it is very positive for Monitoring and Evaluation. The other leg, he explained, is “where we try to evaluate the outcomes in terms of jobs created on the back of this project”.

    “We will be interested in all those metrics, we want to see the manhours covered, the skills developed, probably new capabilities–some of the equipment that you didn’t have before but because of the opportunity that TotalEnergies has provided, you’re able to acquire them.” He advised the company to update its profile on NCDMB’s Nigerian Oil and Gas Industry Content Joint Qualification System (NOGIC-JQS) platform as soon as possible “to show that this is additional capability that you have acquired”, Halilu expressed. 

    He also urged the management of Wilkriss to sustain the quality assurance attainments already made as evidenced by “all the ISO certifications from HSE to Environment and to Quality Management,” as the company moves to its new site “because that is what counts when we talk about technical evaluation.”    

    Halilu revealed that “NCDMB has conducted a baseline census in fabrication yards and we’ve seen a major trend in terms of burst and boom era, in terms of capacity utilisation. So we try as much as possible to give premium attention to fabrication yards to ensure that there’s a healthy pipeline of opportunities for them to sustain the operations of the yards”.

    On the wider significance of the Wilkriss breakthrough with the Skided Ejector Package for the oil and gas industry, he explained: “We know Nigeria has signed on to net zero carbon emission by 2060…. So this project which seeks to reduce gas flaring – ultimately that means carbon emission – is part of the global momentum we have today around decarbonisation and net zero”.

    The other bit that is of interest, according to him, is “the fact that the Skided Ejector Package helps with the Nigerian Liquefied Natural Gas feedstock. Being able to unlock availability of feedstock is very important. It’s no point completing Train-7 of the NLNG and everybody is struggling with supply of feedstock.”

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    In his concluding remarks he urged the company to think of how staff who worked on such a sophisticated project would remain engaged in operations in the industry so the knowledge is retained and improved upon, just as the company itself must strive to build capacities as new technologies emerge.

    An Executive Director of Wilkriss, Engr. Naaba Umahi, thanked the NCDMB boss and management for honouring the invitation to the Load-out Ceremony, which he said marked a major milestone not only for the company but the industry and the country, given that a project of such magnitude could be executed in-country with a workforce, which included 6-G-certified welders, that was 100 per cent Nigerian.

    While commending TotalEnergies for being “very supportive” at all stages of the project, he said both companies “were able to agree on materials that could be procured locally.” On the scope of work carried out, he pointed out that it was from steel cutting to completion, adding there was no rework at any stage. Functionality tests, pressure tests, and related activities were all handled by company staff, without a hitch.

    Among challenges Wilkriss faced initially was the review of project design, an undertaking and experience he said were rewarding as they brought out the best in their engineers, yielding what turned out to be process improvement.

    Engr. Umahi, who doubles as Deputy Managing Director of Wilkriss, assured the NCDMB that the company would strive to build capacities for new technologies on a continuous basis.

  • NCDMB seeks media support on evaluation of content performance

    NCDMB seeks media support on evaluation of content performance

    The Nigerian Content Development and Monitoring Board (NCDMB) has sought the support of the media practitioners and other critical stakeholders to help in strategic evaluation and dissemination of the Nigerian content performance.

    The acting General Manager, Corporate Communications and Zonal Coordination, Mr. Esueme Dan-Kikile, made the appeal yesterday at the Nigerian content capacity building workshops for media stakeholders in the Southsouth, held in Port Harcourt, Rivers State capital.

    Speaking on the theme, ‘The Role of the Media in Sustaining Nigerian Content Legacies’, Dan-Kikile noted that the workshop was targeted at empowering media practitioners with the requisite knowledge in disseminating local content policies and evaluating its performance, using the fundamentals of media strategy and corporate storytelling techniques.

    He said: “The idea behind this media workshop that we have held is simply in two folds: one is for us to have this interface with the media and use the opportunity to evaluate where we are in terms of Nigerian content performance and also what our public, which includes the media, stakeholders, community people and their perception of NCDMB performance.

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    “The second objective is for us to use it to develop knowledge for media practitioners. At every point in time, we choose very specific leaders in communication, leaders in the media, leaders in other areas of practice including, in one instance, a very senior legal practitioner to speak to journalists on the ethics of their profession and how those things converge to help in the reporting of Nigerian content.”

    A Communication Consultant and Executive Director, Institute of Communication and Corporate Studies, Lagos, Dr. Austin Tam-George, said media strategy in the context of the NCDMB was the ability to develop and sustain the relationship in a long term with the media community.

    He said NCDMB is a government institution that serves the people in the specific sector of oil and gas.

    Speaking on corporate storytelling, Tam-George said the development helps in creating a narrative of efficiency and goal setting.

    He advised that corporate stories must be true and verifiable, realistic and achievable, inspirational, aspirational and engender some teachable moments in order for people to have faith in such an organisation.

  • Content board rejects 179 expatriate quota requests

    Content board rejects 179 expatriate quota requests

    Nigerian Content Development Monitoring Board (NCDMB) has rejected a total of 179 expatriate quota (EQ) requests while 889 requests received the blessing of the board.

    The Executive Secretary of NCDMB, Simbi Wabote who spoke at the 12th Practical Nigerian Content Forum with the theme: Deepening Nigerian Content amidst Divestments, Domestication and Decarbonisation, in Bayelsa State, said the regime of expatriate quota approval is been declining over the last five years.

    He said this year, a total of 1,156 EQs were approved at the end of November compared to 889 approved last; 328 EQs were compared, 179 rejected last year.

    Wabote said NCDMB has completed 83per cent of the 96 initiatives under its strategic roadmap. The focus is now shifting to the remaining initiatives that require some heavy lifting to bring into fruition.

    In the roadmap, the technical operations data in NOGIC-JQS showed that the number of registered industry operators moved from 53 in 2018 to 114 in 2023 representing about 100 per cent increase. Within the same period, service companies increased from 8,000 to 11,000 while individual registrations increased from 140,000 to almost 400,000.

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    Certification of Nigerian Content (NC) Plans increased from 178 in 2022 to 255 in 2023 while the approved NC Compliance Certificates dropped from 197 in 2022 to 168 in 2023.

    It’s believed the higher certified NC Plans in 2023 will soon translate to approved contracts with NC Compliance Certificates as the industry gets accustomed to the policy directions of the new government. To shorten contracting cycle to a max of six months, a new SLA-MoU has been signed with industry operators and the Nigerian National Petroleum Corporation (NNPC) Limited.

    NCDMB had at the end of 2017 launched a 10-year Strategic Roadmap aimed at increasing Nigerian Content in the oil and gas industry to 70 per cent by the year 2027.

    The board had rolled out five pillars and four enablers to drive the focus areas under the roadmap, each supported with short, medium, and long-term initiatives.

    The Executive Secretary said the expatriate quota approval has been trending down from up till 2021 when it started an upward trend largely due attributed to the post-COVID-19 business recovery, newly sanctioned projects such as Train-7, and the passage of the Petroleum Industry Act (PIA) of 2021.

    According to him, under the Technical Capability Development pillar of the roadmap, the in-country fabrication capacity moved from 60,000tons per year to 250,000tons/year.

    Under this pillar, the board has transformed two of the portfolio of NOGAPS sites from bare land to industrial parks to support in-country manufacturing and assembly of equipment and input materials required for exploration and production activities.

    While these two NOGAPS sites are essentially ready for commissioning, the board is keen to operationalize it by having manufacturing activities in place which is scheduled for first half of next year, the Executive Secretary revealed.

    Wabote said a total of 37 applications have been received for allocation of service plots and or shop floors so far, adding that the process of allocation of serviced plots to manufacturers is in top-gear and so far, service plots/ shop floors have been allocated to six companies.

    At the moment, the board has reached an advanced stage in their review of the Business Plans of intending tenants adding another batch of allocations will soon be made.

    Earlier, the board set up a dedicated $50million fund to co-finance industry research and development activities.

    The Executive Secretary said the Research and Development Fund led to the development of Amal Tech Smoke Alarm Detector Facility that will be commissioned soon in Abuja.

    The board also created Centers of Excellence for research and development in six Nigerian Universities as well as created the Technology Incubation and Innovation Center to incubate innovative ideas/startups.

    Wabote said Seventeen start-up companies had successfully concluded Training at the NCDMB Technology Incubation and Innovation Centre (TIIC).

    On Human Capacity Development, Wabote said the board identified existing technical/vocational or craft centers and carried out intervention programs to strengthen the institutions including Government Technical College in Abak, Akwa Ibom State, GTC Port Harcourt, GTC Amoli, University of Ibadan, University of Port Harcourt, Rivers State University, University of Lagos, Nigerian Maritime University, and many others.

    The HCD programs, according to him have enabled training and provision of sea-time exposure to marine cadets, underwater divers, boat builders, and NDT Level-3 certified engineers.

    In his welcome address, the Chairman, Independent Petroleum Producers Group (IPPG), Abdul Razaq Isa IPPG hereby re-affirms its commitment to continue to partner with NCDMB, as it aims to strengthen in country capacity and increase Nigerian Content for the benefit of the industry and the county.

    Isa noted the NCDMB since inception on 2016 has delivered unprecedented milestones and been a shining example, not just in the industry but the nation in general on how a best-in-class government agency should operate.

    He admitted these strides have definitely laid a solid foundation for the growth and development Nigerian Content in the years to some.

    He expressed the optimism that the vigour with which the local content policy has been implemented, we are able to get it right for the long-term growth of our industry.

  • NCDMB warns oil firms against reduction in compliance, tax revenue

    NCDMB warns oil firms against reduction in compliance, tax revenue

    The ongoing and planned divestments of onshore assets by some international operating oil and gas companies (IOCs) and subsequent acquisition by Nigerian operating companies must not be allowed to impact negatively on the level of compliance with the Nigerian Oil and Gas Industry Content Development (NOGICD) Act and remittance of tax revenues to the federal government.

    Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Wabote, said the planned sale of assets of Nigerian Agip Oil Company Ltd to Oando Plc and Seplat Plc’s planned acquisition of assets of Mobil Producing Unlimited (MPNU) would transform Oando and Seplat from midsized players into big-time oil and gas operating companies.

    He disagreed with the impression that the international oil companies were exiting the country because of unfavourable conditions, noting that the foreign firms were carrying out assets rationalization, whereby they leave the onshore and shallow waters and focus on deep offshore operations, where they retain a competitive advantage and contend with minimal human interferences.

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    Wabote spoke during breakfast meeting with members of the Guild of Corporate Online Publishers (GOCOP) and editors of newspapers and directors of broadcast stations in Abuja.

    He said the ongoing and other planned divestments are big accomplishments for Nigerian Content development, describing them as “bold statements that Nigerian indigenous operating companies have come of age and acquired the technical, managerial, and financial capabilities to play in the big league.”

    He said: “We are proud that we have moved from near zero participation in the oil and gas sector to the point that our indigenous operators such as SEPLAT, AITEO, and others are now responsible for 15% of our oil production and 60% of our domestic gas supply.” With this planned acquisition, the share of local firms in crude oil production could reach 30 percent or more in a short while.”

    The Local Content boss however warned that the ongoing transactions and future divestments from international companies to local producing firms could pose serious challenges to the country in terms of declining Nigerian content compliance and reduction in tax payments to the Government from the new owners and operators.

    He based his position on the Board’s experience and records which showed that indigenous firms, especially the indigenous operating companies are serial violators of the Nigerian Content Act and other laws. According to him, “many indigenous companies feel entitled and assume they can get away with non-compliance. Some indigenous firms have also argued that they should be excluded from the implementation of the NOGICD Act since their primary investors are Nigerians.”

    Comparing the attitude of the local firms to their international counterparts, the Executive Secretary stated that “in many instances, international operators try to comply with the Nigerian Content because it is in their DNA to obey laws or they have to show evidence of compliance to their home offices. The IOCs will do everything to comply with the provisions of the NOGICD Act. But the indigenous companies will do everything to circumvent the law.”

    He emphasized that the provisions of the Nigerian Content cover all entities and all activities connected to the Nigerian oil and gas industry and no firm is exempted from compliance. He explained that the Nigerian economy would not develop without encouraging local content in key industries, catalyzing local production of goods and services retaining spend in the country, and conserving foreign exchange.”

    On strategies that would compel the indigenous companies to comply, the Executive Secretary said the Board would continue to use existing regulations and guidelines as well as the provisions of the NOGICD Act to reign in non-compliant firms. The Board is also partnering with relevant agencies, including the Economic and Financial Crimes Commission (EFCC) and industry stakeholders to ensure that the increasing footprints and stakes of indigenous production companies do not cause a reduction in Nigerian content compliance and remittance of taxes to the Government.

    He charged the media to advocate for Nigerian Content compliance by all stakeholders of the industry and to challenge indigenous oil and gas operating companies to comply with the laws of the land, including the payment of accurate taxes on their operations.

    He stated that the Board organized the breakfast meeting to update the media stakeholders about the Board’s programmes, build their competencies, enhance their professional effectiveness, and update them on the latest trends in their industry.  He described the media as a reliable stakeholder and promised the Board’s continuous support toward an enduring symbiotic relationship.