*Lauds introduction of Nigerian Content Investment Forum in Houston, Texas
19 November 2015, Sweetcrude, Abuja – The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Mr. Denzil Kentebe has lauded the initiation of the Nigerian Content Investment Forum (NCIF) for its efforts to boost investment in the nation’s oil and gas industry.
Kentebe, who was speaking on Wednesday when he hosted officials from the Mayor of Houston’s Office of International Trade and Development, said the government has various incentives to encourage Original Equipment Manufacturers, OEMs, to invest in the country.
The Nigerian Content Investment Forum, NCIF, which held for the first time on the sidelines of the Offshore Technology Conference, OTC, in Houston, Texas, is an initiative of Sweetcrude, sponsored by NCDMB, aimed at promoting direct investment in the Nigerian oil and gas industry.
“We are promoting the Nigerian Content Investment Forum, NCIF, to attract investors to set up facilities for manufacturing and services connected to oil and gas industry activities in Nigeria.
“Conscious of the growing size of the Nigerian population in Houston and the eminent position of the city as the largest collection of oil and gas Original Equipment Manufacturers, OEMs, we launched the maiden NCIF at the Houstonian in Houston, Texas on 4th May 2015,” Kentebe explained.
Kentebe said the areas of interest for the NCIF is to encourage OEMs involvement in the manufacture and services of instrumentation & automation, valves, flanges and connections, brackets, switchgears, well tools, panels, clamps, gaskets, pumps, seals, equipment assembly, services & testing etc.
According to him, location of oil and gas parks in Bayelsa, Imo and Cross River states were “carefully selected to confer access to required electricity, water (for cheap transport of raw materials & finished goods) and gas (to power operating equipment). This will enhance competitiveness of goods manufactured (price, quality and schedule).”
He added that NCDMB is directly funding land acquisition and provision of primary infrastructure (road network, fence, security post). “This will reduce startup cost for the OEMs.”
“OEMs are required to form partnerships with local SMEs in this venture. This, coupled with the fact that goods produced are classified as locally made would enhance compliance with Local Content Requirement, LCR, for supply of goods.
Kentebe said investment in Nigeria will provide access to a vast local market (10th largest proven reserves in the world ) and the African market.
“The Federal Government is implementing Nigeria’s Industrial Revolution Plan, NIRP, which seeks to increase contribution of manufacturing to GDP from current 4% to 10%. Incentives are in place to ease operations of the OEMs,” he stated.
He noted that the The Nigerian Oil and Gas Industry Content Development, NOGICD, Act of 2010 established NCDMB, with the primary mandate to develop capacity of local supply chain, for effective and efficient service delivery to the oil and gas industry, without compromising standards.
“Our emphasis is on in-country value addition and not about indigenization or Nigerianisation of the oil industry. Pursuant to our mandate NCDMB is implementing a couple of Capacity Development Initiatives, CDIs, that is addressing current gap in local manufacturing of critical goods,” he added.
The NCDMB helmsman listed some of the areas of interest to the Board including the Equipment Component Manufacturing Initiative, ECMI, which requires suppliers of equipment to manufacture components, spares or accessories of the equipment in Nigeria as condition for participation in bids.
“Our target here is to have at least 10% (by value) of the equipment to be made in Nigeria,” he noted.
Other Capacity Development Initiatives, he said, include the Nigeria Oil and Gas Park Scheme, NOGaPS, the Pipe mill Scheme, and the Liquefied Petroleum Gas Cylinder Manufacturing Initiative, which promotes local manufacture of LPG cylinders to encourage use of LPG with a plan to increase local production from 400,000 unit/annum to 2 Million/annum.
He noted that, “Specifically under NOGaPS, we have identified the need for international partnership to achieve the objectives of the program.
“At this point we will like to thank the Mayor of Houston and her team for their contribution and support, which made the launch of the NCIF a huge success. The Board intends to make NCIF an annual event going forward; and we count on your continuous participation, along with OEMs operating from Houston.
“We believe this follow up visit will enable NCDMB and the Mayor of Houston to better structure engagements between the Board, OEMs in Houston and our local SMEs, to achieve our aspirations of domiciling manufacturing and services in-country.
“Based on the enumerated benefits of NOGaPS to OEMs, we count on your support to attract OEMs from Houston, to set up in our oil and gas parks. We also look forward to your support in attracting investments into other sectors of the Nigerian economy,” he stated.
Speaking earlier, the representative of the Mayor and Chairperson the Mayor of Houston’s Office of International Trade and Development Council for Africa, Ms. Linda Anukwuem, said based on the success of the maiden Nigerian Content Investment Forum in Houston, the Mayor’s Office was already reaching out to more OEMS in the Greater Houston area to participate in subsequent forums.
She said the delegation was in Nigeria to seek for better collaboration, noting that despite oncoming elections this year, the office of the Mayor of Houston was determined to enhance cooperation and boost development of mutual investments with the Nigerian oil and gas industry.