The Nigerian
Content Development and Monitoring Board (NCDMB) yesterday said
European Union’s support to the implementation of the Nigerian Content
Act will encourage investors from their countries to set up oil and gas
facilities in Nigeria.
Ernest Nwapa, the
NCDMB executive secretary, said this at a forum organised by the
European Union (EU) in Abuja. He noted the long-standing economic
partnership between Nigeria and EU countries, urging that the same
spirit of collaboration be extended to Nigerian Content implementation.
“The Act was not
conceived to drive away foreigners from the Nigeria oil and gas
industry, rather to facilitate participation of Nigerians as well as
increase the quantum of industry expenditure retained in-country,” Mr.
Nwapa said.
“One of
government’s strategies for pursuing its job creation agenda is to
bring Nigerian jobs back home by progressively reducing the volume of
Nigerian goods and services being procured from abroad,” he further
said.
By encouraging the
establishment of shipping yards and facilities in Nigeria, Mr. Nwapa
said the implementation of the Act will create employment for
Nigerians, link the industry with the wider Nigerian economy, increase
the nation’s Gross Domestic Product (GDP), as well as provide continued
access to the oil fields, especially when indigenes of the oil
producing areas are integrated into industry mainstream.
‘It is working’
He claimed that the
guidelines have resulted in the development of in-country capacity for
the oil industry and local service industry patronage from a dismal
five per cent in 2004 to 35 last year.
The NCDMB scribe
expressed regrets that the limited capacity of the local service
industry has resulted in over 65 per cent of industry work scope still
being done abroad.
He told the meeting
attended by ambassadors of three EU member states and diplomats of six
others that the Board is currently working towards reversing this
negative trend by collaborating with operators to set up heavy
industries, pipe mills and equipment manufacturing facilities, in
addition to the development of dockyards, to increase the utilisation
of existing shipyards for marine vessels maintainance.
“The Board intends
to leverage on the Nigerian Content Development Fund to support genuine
investors interested in developing capabilities, acquiring equipment,
installing facilities and infrastructure required to bridge critical
capacity gaps in the industry, so as to ensure the domiciliation of
work and spend,” Mr. Nwapa declared.
He said the Board
is monitoring compliance level of international oil companies (IOCs)
and multinational service companies with the provisions of the Act, and
also deploying monitors to ensure compliance.
The secretary,
Petroleum Technology Association of Nigeria (PETAN), Emeka Ene, noted
that the growth of his members’ businesses was tied to the effective
implementation of the Act, though he expressed regrets that exclusivity
was accorded to Nigerian service companies for jobs in land and swamp
fields, noting that most of the firms are constrained by lack of
capacity which can be bridged by partnerships.
