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NCDMB unveils procedures to drive local content implementation

By Tochukwu Bliss, Abuja

The Nigerian Content Development and Monitoring Board (NCDMB), has unveiled five focal areas for the implementation of the local content policy initiative.

NCDMB’s Executive Secretary, Felix Omatsola Ogbe, did the unveiling on Monday when he spoke at the Nigerian Content Seminar, during the opening of the Nigerian Oil and Gas (NOG) Energy Conference, in Abuja.

The focal areas include promoting the utilisation/growth of in-country capacities; enhancing the cost competitiveness of oil and gas projects; non-inclusion of intermediary entities lacking the essential capacity to perform the Nigerian Content Plan (NCP).

Also, approval of Nigerian Content Plan (which consists of contractors that meet the legal definition of Nigerian companies and demonstrate capacity to execute projects within Nigeria); and ensuring that entities acting solely as intermediaries, with no demonstrable capacity to execute the project or activity, shall not be approved.

He noted that the Presidential Directive on Local Content Compliance Requirements is crucial for enhanced competitiveness and mitigation of risks in regard to unqualified contractors.

According to Mr. Ogbe, the Board would continue to leverage its existing processes “to assess and verify the capacity of companies, facilitating and carrying out in-country capacity audits in collaboration with all relevant stakeholders.”

On enhancement of cost competitiveness of oil and gas projects, he said, operators would only be permitted to source capacities out-of-country “only after in-country capacity gaps have been identified.”     

In regard to non-inclusion of intermediaries lacking the essential capacity, he said the “Tender opportunity’s pre-qualification and technical evaluation phases” would be used to eliminate entities so identified as incapable of performing.

Regarding the Board’s procedure in respect of approval of the NCP, he noted that international players’ participation would be deemed appropriate only “when the necessary Nigerian Content level is unavailable locally or inefficient.”

While assuring that entities acting solely as intermediaries with no demonstrable capacity to execute a project would not be approved, he reiterated that the Board remains “steadfast in its dedication to guaranteeing that any services provided will generate value in the country.”

he added that it would “evaluate current policies and guidelines to encourage the development of indigenous capabilities and guarantee that these policies and guidelines are not misused, misapplied, or misinterpreted.”

The Board would continue to leverage its existing processes to assess and verify the capacity of companies, facilitating and carrying out in-country capacity audits in collaboration with all relevant stakeholders.

70% content by 2027

Mr Ogbe said the Presidential Directive and the Board’s modalities are in sync with the objectives of its 10-Year Strategic Roadmap, which aims to increase Nigerian Content to 70% by 2027.

While noting the recent landmark accomplishments of the Board, he also congratulated winners and participants in the Golf Tournament organized as part of the NOG Energy Week.

The golf tourney is sponsored by the NCDMB and the Executive Secretary emphasized that the event is an excellent platform to provide clarity, expositions, tips and guidance to industry players on the provisions of the NOGICD Act.

Speaking during one of the breakout sessions, the Director of Projects Certification and Authorization Certificate (PCAD) at the NCDMB, Abayomi Bamidele, explained that NCDMB had enabled the growth of the oil and gas sector through its policies, collaboration and investments.

He informed that about 1000 Nigerian service companies were registered on the NOGIC JQS in 2011, but the number had increased to 13,000, while the number of operating companies had equally increased to 120 firms.

He charged service companies to only accept jobs they have the technical capacity to execute, and to eschew the practice of bidding for every job in the oil and gas industry. He also emphasized that Nigerian Content is not a major cost driver in Nigeria, noting that other elements like security and managing community stakeholders are big cost drivers.

In his contribution, the General Manager, Planning Research and Statistics, Silas Ajimijaye, noted that subsequent legislations enacted in the industry after the Nigeria NOGIC At 2010, have reinforced the effectiveness of the law.

Also contributing, the Chairman, Petroleum Technology Association of Nigeria (PETAN), Wole Ogunsanya, noted that Nigerian Content development built the capacity of local companies who now execute jobs across Africa and beyond.

He added that local content implementation has lowered the entry barriers into the oil and gas industry and created local operating companies that are acquiring the assets being divested by international oil companies.

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