Lagos — Nigerian content has witnessed several notable accomplishments under the leadership of Simbi Kesiye Wabote, the erstwhile Executive Secretary of the Nigerian Content development Monitoring Board, NCDMB, growing adaptation from 26% when he was appointed in 2016 to over 42% at the close of 2022.
The giant strides recorded in Nigerian content becomes more significant in the face of obvious contraction of business activities in the Nigerian oil and gas industry in the last 10 years owing to security challenges, poor governance structure due to the delays which dogged passage of the Petroleum Industry Act, PIA, rising concerns about climate change which has resulted in a global lethargy towards investments in the development of hydrocarbon, among other issues.
Nigerian Content Development and Monitoring Board (NCDMB) was established under the Nigerian Oil and Gas Industry Content (NOGICD) Act (2010). It is the sole agency of government responsible for the implementation of Nigerian Content requirements in the Oil and Gas Industry.
The mandate of the Board is to develop local capacities and capabilities as well as
monitor and enforce compliance with the provisions of the NOGICD Act.
The functions of the Board include:
To approve Nigerian Content Plans and issue Certificate of Authorization.
To set guidelines and minimum Nigerian Content levels.
To engage in targeted capacity building interventions.
To grow and manage the Nigerian Content Development Fund.
To establish, maintain, and operate the Joint Qualification System (NOGIC
JQS)
To monitor Nigerian Content compliance by operators and service providers.
To conduct studies, research, investigations, workshops, trainings, and
enlightenment programmes for the development of Nigerian Content.
Some of the Board’s achievements include:
1) Construction and commissioning of NCDMB 17-Storey Headquarters
The most visible accomplishment of the NCDMB is the construction, completion and commissioning of Nigerian Content Tower 17-storey headquarters building, with 1000-seater conference auditorium and multi-level car park in Yenagoa, Bayelsa State. The project was executed in five years, using an indigenous contractor. The Nigerian Content Tower is one of the tallest structures in use in the South/South and South/East Regions of the country, and was commissioned by President Muhammadu Buhari in August 2020. The project generated over 250 employment positions for the host community, ample opportunity for artisanal skills development and other capacity building opportunities for Nigerians.
2. Introduction and implementation of Nigerian Content 10-Year Strategic Road Map.
One of the fundamental accomplishments of the NCDMB is the conception and implementation of a 10-year Nigerian Content Strategic Road Map in 2017. This became the guidepost to Nigerian Content growth as it clearly delineates the activity schedules and milestones towards increasing Nigerian Content performance from 26% in 2016 to 70% by 2027. After four years of implementing the roadmap, in-country value retention has increased remarkably from 26% to 42%.
3. Cross Sectorial Linkages.
The Board has consistently promoted the extension of Local Content to other critical sectors of the Nigerian economy and fostered cross-sectorial linkages between the oil sector and Power, ICT, Education, Construction and other industries. This inspired the Federal Government to issue Executive Order 003 titled ‘Support for local contents in public procurement by the Federal Government and Executive Order 005 titled ‘Planning and Execution of Projects – Promotion of Nigerian Content in Contract and Science, Engineering & Technology. The Board also collaborated closely with the National Assembly in the ongoing efforts to enact a Local Content Law to guide other sectors of the economy
4. Promotion of African Local Content
The NCDMB under Engr Simbi Kesiye Wabote has championed the development of
Local Content across the continent and provided guidance to several African
countries on the implementation of Local Content policies in their jurisdictions. The
Board also initiated and hosted the first African Local Content Roundtable in
partnership with the African Petroleum Producers Association (APPO) and is
canvassing for the establishment of African Local Content Bank to provide funding
for the development of oil and gas projects across the continent.
5. Enabling 50% Domiciliation of $12bn NLNG Train 7 Project
NCDMB enabled the domiciliation of 50% of the $12bn NLNG Train 7 Project. Over half of the project scope is being executed in the country by Nigerian vendors and is expected to create 12,000 jobs directly and engender peace in the Niger Delta region. The Board also facilitated the project by granting all necessary approvals within a record time of 15 months and saved the economy $2bn on the Engineering, Procurement, and Construction (EPC) cost through the insistence on Local Content for the project.
6) Introduction of Service Level Agreements (SLAs)
The NCDMB, under Engr. Wabote introduced the Service Level Agreements (SLAs) between the Board and critical oil and gas operating companies and other key industry stakeholders. This seminal initiative not only shortened the protracted tendering cycle in the Oil and Gas Industry from 36 months to 9 nine months, but also enhanced broad compliance with the requirements of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, leading to significant reduction in the unit cost of oil production in Nigeria.
7) Creation of US$450m Intervention Fund
The NCDMB created a US$350m Nigerian Content Intervention Fund managed by the Bank of Industry and NEXIM Bank, to provide affordable credit for Nigerian oil and gas service companies and community contractors, with single digit interest rate. Through this intervention, the Board has effectively addressed the perennial challenge of lack of affordable capital which hampered growth and development of many indigenous service providers. The funds have been disbursed to over 60 indigenous operators in the oil and gas industry without default. As a result, there has been an enhancement of the capacity of local service companies and job creation for thousands of Nigerians.
8) Introduction of Women in Oil and Gas Fund, Working Capital Fund
The NCDMB in partnership with the Nigerian Export-Import (NEXIM) Bank set up
additional $50 million fund with the NEXIM Bank, which was matched with $50
million by NEXIM Bank to bring total fund size to $100 million. This fund has
products for: Women in Oil & Gas; Working Capital and Capacity Building.
The Women in Oil and Gas Intervention Fund benefits oil and gas firms where
women hold majority shares or manage the firms. The Working Capital Fund is for oil
and gas service companies, to support the operations of companies against the
adverse effects of the COVID-19 Pandemic, loss of contracts due to low oil price and
ensure the companies retain their personnel in employment.
9) Introduction of US$50m Fund for Oil Industry Manufacturing
Recently, the Board also launched a $US50 million dollars fund for NOGAPS Manufacturing Product Line. The fund is to incentivize companies that would operate in the Nigerian Oil and Gas Parks and engage in the manufacturing of equipment components used in the oil and gas industry and linkage sectors.
The fund is managed by the Bank of Industry (BoI) and will stimulate the oil and gas component manufacturing and address the peculiarities of the sector, which include long lead time before returns, low margins on products, and reluctance of commercial banks to lend to operators.
10). Modular Refinery Initiative
NCDMB invested and facilitated the construction, and completion of Waltermith’s 5000 barrels per day (bpd) modular refinery in Imo State, now in operation. NCDMB also invested in Azikel Group12,000 bpd hydro-skimming modular refinery in Polaku, Gbarain Clan, Bayelsa State; Atlantic International Refinery’s 2000 barrels plant in Brass, Bayelsa State; and Duport Midstream’s 2,500bpd modular refinery in Edo State. These practical steps created over 3000 jobs in the refining value chain, ensured value addition to Nigeria’s crude oil, growth in domestic refining capacity to improve products availability, creation of jobs in-country and curbing of pipeline vandalism.
11) Construction of Oil & Gas Parks Scheme
NCDMB spearheaded the rapid development of Oil and Gas Parks in Odukpani, Cross River State, Emeyal 1 in Ogbia, Bayelsa State, Onna, in Akwa Ibom State, Oguta in Imo State and Ilaje in Ondo State. The parks are designed to spur the manufacturing of critical oil and gas equipment, tools and spare parts in Nigeria. The parks are in various stages of construction, with the Emeyal 1 and Odukpani sites almost ready for commissioning.
The parks have created hundreds of employment opportunities in the construction phase
and would employ over 2000 persons per location when they become fully functional.
12) Introduction of Project 100 Initiative
NCDMB introduced Project 100 Initiative which seeks to identify 100 oil and gas start-ups and deploy special institutional interventions for their incubation, maturation and growth into world class service companies. This special interventions for Project
100 companies include access to capacity building, funding and access to market.
13) Establishment of FPSO Integration Facility
NCDMB championed construction and integration of Egina FPSO modules (deep offshore drilling and storage ship) for the first time in Nigeria and the entire Gulf of Guinea. This initiative resulted in the creation of 3000 jobs across five years and fabrication of 60,000 tonnage of steel. In addition, this bullish enforcement of Nigerian Content requirements in Egina project resulted in the establishment of 500-meter integration quay side in Lagos for future construction, integration and maintenance of FPSOs.
14) Completion of 10MW power plant
The NCDMB partnered with Eni Companies in Nigeria to construct a 10MW power plant at Elegbele, Bayelsa State. The plant will supply electricity to the Nigerian Content Tower, Nigerian Oil and Gas Industrial Park in Emeyal, Bayelsa State and key offices of the Bayelsa State Government.
15) Investment in Composite Cylinder Factory
NCDMB partnered with Rungas Prime Industries Limited to establish a cooking gas cylinders manufacturing plant in Polaku, Bayelsa State and Alaro City in Lagos. The construction of the factories are underway and they would in addition to job creation in the construction and operations phase, also ensure local manufacturing of 1.2 million per annum LPG composite cylinders; and strategically position Nigeria as a continental hub for the supply of composite cylinders.
16) Retention of 40% of marine vessels
NCDMB introduced policies that grew indigenous ownership of marine vessels in the oil and gas industry to 40 percent, thereby retaining huge oil industry spend in the country and creating jobs for Nigerian seafarers and others support services.
17) Trained 4000 youths on GSM Technology
NCDMB has trained about 4,000 youths in Kano, Bauchi, Yobe, Kaduna, and Cross River States on GSM phone repairs, hardware, software, and entrepreneurship development. The training is part of NCDMB’s Youth Empowerment Programme designed to train and empower youths in high impact economic and linkage sectors such as ICT, Agriculture and construction.
18) Upgrade of Vocational Colleges, Equipping of ICT Centres
NCDMB renovated and equipped the Government Technical College Abak, Akwa Ibom and Technical College Amoli, Awgu Local Government Area, Enugu State as part of strategies to develop critical manpower needed to support various sectors of the economy. The Board also donated over 35 ICT centres and science labouratories to secondary schools across the country to enhance the quality of Information, Communication Technology (ICT) and Science, Technology,
Engineering and Mathematics (STEM) education.
19) Championing Innovation and Launch of Enterprise Development.
The Board launched enterprise development programmes – NOGTECH HACKATHON and Nigerian Content Science and Technology Innovation Challenge (STIC), to foster innovations in the oil and gas and ancillary industry, stimulate local creation of digital technologies that would solve problems in the Nigerian society and challenge the participants to channel their intelligence and become successful entrepreneurs. Five winners emerged from the maiden NOGTECH HACKATHON in 2020 winning the $50,000 prize, while Cross River University of Technology (CRUT) emerged the overall champion of the Nigerian Content Science and Technology Innovation Challenge (STIC), winning the star prize of N10m
20) Launch of $50million Nigerian Content Research & Development Fund
The NCDMB endowed $50 Million Nigerian Content Research and Development
Fund to support research findings that have practical utilisation and have
capability of being commercialised and applied to solve teething problems in the
economy. The R&D Fund would also be used to drive basic research,
commercialization of research breakthroughs, establishment of Centers of
Excellence, and to sponsor University endowments. The NCDMB also
championed the establishment of R&D Centers of Excellence in five universities,
notably Federal Universities of Technology in Minna, Akure and Owerri, Niger
Delta University, Amasoma and Modibbo Adama University of Technology, Yola.
21) Development of Gas based projects
The NCDMB also championed equity investment in critical gas-based projects in keeping with President Muhammadu Buhari’s declaration of a Decade of Gas. Some of the projects include the partnership for the construction of NEDO Gas’ 300MMscfd gas gathering hub for gas supply into the OB-3 pipeline in Edo State, partnership with Butane Energy to deepen LPG utilization in the North, with the roll-out of LPG bottling plants and depots in ten Northern States and the Federal Capital Territory, Abuja; Partnership with NNPC and other investors to develop
the Brass Fertilizer and Petro-chemical Plant, Odioama, Brass, Bayelsa State;
and partnership with Transiel Limited’s LPG Loading/Receiving Terminal in Koko, Delta State.
22) Partnership with BUNORR Integrated Energy Limited
NCDMB partnered with BUNORR Integrated Energy Limited in Port Harcourt, Rivers State, to produce 48,000 litres of base oil per day. The company is designed to blend waste oil to get other derivatives of other lubricants. This facility is nearing completion and commissioning.
23) Partnership to develop Brass Fertilizer and Petrochemical Projects
The Board is partnering with the Nigerian National Petroleum Corporation (NNPC) Limited, Brass Fertilizer and Petrochemical Company Limited and DSV Engineering to establish a 10,000 Ton Methanol Production Plant, Odioama, Brass, Bayelsa State. The facility would be the largest methanol plant in Africa and the first in Nigeria and the construction phase is expected to create 30,000 direct and indirect jobs and additional 5000 permanent jobs during the operations phase.
24) Construction of Oloibiri Museum and NCDMB Conference Centre
The Board is partnering with the Petroleum Technology Development Fund (PTDF), Nigerian Content Development and Monitoring Board (NCDMB), the Bayelsa State Government (BYSG) and Shell Petroleum Development Company of Nigeria (SPDC) Joint Venture partners led by the NNPC
to develop the Oloibiri Museum and Research Center (OMRC). The museum will provide a suitable location where historic developments, data, equipment, and tools used in the Nigerian oil and gas industry will be stored for posterity and provide a Research Center where research prototypes from the industry can be tested against
the requirements of the industry.
The Board is also developing the NCDMB Conference Hotel Project (CHP), a three-star hotel being developed by the Nigerian Content Development and Monitoring Board (NCDMB) at Swali, adjacent to the 17-storey Nigerian Content Tower. The Hotel will provide accommodation for stakeholders and other personalities that visit Yenagoa for business or to participate in the several oil and gas events organised periodically at the Board’s 1000-seater ultra-modern Conference.
