By Stanley Onyeka, Lagos
The Nigerian Content Development and Monitoring Board (NCDMB), yesterday, revealed that presidential directives, which facilitated the elimination of middlemen from the oil and gas industry value chain, have contributed to shortening the oil industry contracting cycle to six months from 36 previously.
The Board said this feat was made possible through the three presidential directives on local content operations issued by President Bola Tinubu in March 2024.
NCDMB Executive Secretary, Felix Ogbe, disclosed this during a breakfast meeting with some media executives in Lagos, tagged: “Role of the Media in Sustaining Nigerian Content Development.”
Mr. Ogbe, an engineer, also confirmed that NCDMB had complied fully with the presidential directive on local content compliance requirements, 2024 (EO 41), which seeks to ensure that only local service companies with domiciled proven capacities and capabilities can participate in oil and gas tenders.
He added that NCDMB has reduced its touch points and fast-tracked project approval processes, in compliance with the presidential directive on reduction of petroleum sector contracting costs and timelines, 2024 (EO 42).
According to him, the presidential directives and the Board’s compliance are geared to attract new international and local investments, encourage speedy development of oil and gas projects and improve the Nigerian economy.
The Executive Secretary hinted on plans to launch a major initiative tagged “Back to the creeks.” This policy will take the impact and contribution of local content implementation to oil producing communities and other hinterlands across the country.
The major drivers of high cost of oil production are downtime and disruptions in operations caused by community issues or technical problems.
In terms of rising cost of oil production in Nigeria, Mr. Ogbe dismissed insinuations that local content implementation is responsible for the current high cost, saying that the major drivers are downtime and disruptions in operations caused by community issues or technical problems.
He identified other factors to include the cost of providing security, and the activities of briefcase contractors.
On the Board’s strategies for enabling growth of the industry, Mr. Ogbe informed that NCDMB was working intently to create an enabling environment for international oil companies to take final investment decisions (FIDs) for new projects and was evolving policies to support indigenous oil and gas service companies.
On domiciling insurance businesses, the NCDMB boss promised to revive the insurance services guidelines the Board signed in June 2022 with the National Insurance Commission (NIACOM), which would oblige the Nigerian oil and gas industry to patronise the local insurance sector.
Mr. Ogbe further acknowledged that the success of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, and the Nigerian Content 10-year strategic roadmap depends largely on public communication, awareness and support from key oil and gas stakeholders.
To this end, he appreciated the media for projecting NCDMB activities and programmes and assured that cooperation with the media would be deepened under his leadership as the Executive Secretary.
The General Manager, Corporate Communications and Zonal Coordination, Esueme Kikile, explained that the breakfast meeting was organised to formally introduce the Executive Secretary to leading media stakeholders.
Other senior management of NCDMB present were the Director Corporate Services and Capacity Building, Ama Ikuru; Director Monitoring and Evaluation, Abdulmalik Halilu; Director Projects Certification and Authorisation, Abayomi Bamidele; and Director, Legal Services, Naboth Onyesoh.
Also commenting, Mr. Ikuru charged media stakeholders to report Nigeria in a positive light, to attract investments in the oil and gas sector.
On his part, Mr Halilu gave an update on the performance of the Nigerian Content Intervention Fund (NCI Fund), with performance at over 90%, judging by the percentage of access by qualified companies and repayment by the borrowers.
He equally hinted that the Executive Secretary had constituted a team to review the Community Contractors Fund, which is a poor performing product under the NCI Fund.
He expressed the hope that an announcement would soon be made on the remodeling of that particular product, under new partners and product papers.
Additionally, Mr Bamidele highlighted the increased number of projects approved by the Board since it started implementing the Presidential Directive on Local Content.
He added that the Board was equally supporting companies seeking to fast-track gas investments to take advantage of the Presidential Directive on Tax Incentives, Exemptions and Remissions for the Oil and Gas Companies
Mr Onyesoh commended the media for their support to the Board over the years, which increased the visibility and public awareness of its functions and achievements.
