In a country full of hopes and potentials, the federal government, in order to increase greater local participation in the technical and operational aspect of the oil industry, set up the Nigerian Content Development and Monitoring Board (NDCMB) as the veritable vehicle to propel local talent and business in the country.
Now, eight years on, since the signing into law of the Nigerian Content Development and Monitoring Board (NDCMB) Act, the Board has essentially being able to meet up with the mandate, the dream and the aspiration that heralded its establishment.
To effectively steer the board to achieve this objective, the current management under the leadership of Engineer Simbi Wobote has developed strategies that will stimulate local manufacturing and fabrication culture to meet the provisions of the law setting up the
Board, giving the fact that local manufacture of oil and gas equipment is necessary for the desired growth of the Nigerian Content.
It is based on this that the Executive Secretary of the NCDMB, Engineer Simbi Wabote, upon resumption initiated a review of the programmes and performance of the Board to determine its progress to where it is now, what needed to be improved upon and what new innovation was needed in order to fulfill the sacred mandate; and furthermore, to bring to the awareness of Nigerians, the giant strides that have been achieved since the board was set up.
To consolidate on the gains, the Executive Secretary early in the year, put together an Oil and Gas Fair in Uyo, the Akwa Ibom State capital, with the theme: “Advancing digenous Participation in the Nigerian Oil and Gas Industry For National Development” The aim of the fair was to showcase opportunities in the upstream, midstream and downstream sectors of the Oil & Gas industry; and to showcase local capabilities, potentials and capacity available in-country.
The fair which was the maiden edition of series of such fairs in the years ahead was deliberately targeted to provide multi-national oil and gas companies operating in the country the opportunity to link up and utilise in-country Nigerian capacity and enable Nigerian companies tailor their business strategies towards exploiting available opportunities in the sector.
Under Engr. Wabote, the management has established a platform for stakeholders to obtain direct and specific information on upcoming activities across the spectrum of oil and gas sectors and the numerous linkages to other industries such as power, mining, information technology and welding.
The management is also keen to identify high impact activity areas with potentials for employment generation, training, in-country value addition, and revenue retention for support and inclusion in her Five-year roadmap thereby further cementing the sustainability of Nigerian Content development and implementation.
Within the last one year, the Board has made improvement in the response time for request or application sent to it, while also expanding the Board’s operation to include the midstream and downstream sectors in line with section 106 of the NOGIDCD Act; and roll out of the revised operating model that will enhance access to NCDF by service providers and the inclusion of research and development culture in the industry.
Efforts are on to provide support in the effort to implement local content across other sectors such as power, ICT and construction. The Simbi Wabote led management has also digitalized government data to enable the general public access to information, pursue the domiciliation of manufacturing for paints and other goods used in the oil and gas industry and promote collaboration to aggregate the industry’s business plans.
In his quest to re-position the Board, one of the first commitments the Executive Secretary gave upon resumption was that operators can assume they have received the consent of the Board if they did not get feedback from the board in 15 working days.
Beyond the directive, the board has streamlined the internal process such that NCDMB is now positioned to review contract within 100 days provided they are submitted in line with the NOGICD Act.
Having demonstrated the directive in the last one year it has recorded an unprecedented completion time of tendering process for the Zabazaba project.
NCDMB has also jointly developed and signed Service Level Agreement with some critical stakeholders such as the Nigeria Liquefied Natural Gas (NLNG) Company Limited – a first by any government agency.
Besides this, it has written to OPTS to jointly draw up similar agreement to ensure NCDMB’s role in contracting process is clear and transparent in line with the Executive order on Ease of Doing Business.
As part of the achievement of NCDMB in the last one year, the board has systematically commenced the expansion of operation to cover midstream and downstream sector of the industry. NCDMB is now part of NLNG business activities and has also visited Dangote refineries where they agreed on steps to involve more Nigerian companies with capacities for patronage by Dangote Oil Refinery in the development of the project to meet cost and schedule timelines.
On the strength of the achievement, a compilation of auxiliary business required to sustain operation of the refinery is under development to support the operational phase of the huge 650,000 barrels/day refinery.
In the last one year, the Board has lunched the $200m intervention fund for Nigerian oil and gas service providers that are contributors to the Nigeria Content Development Fund. The intervention fund has all-in single digit interest rate of 8% for loans extended to Nigeria Oil and Gas service providers and all in single digit interest rate of 5% for loans extended to community contractors.
With a robust research and development culture, NCDMB has signed the Research and Development Guidelines with key industry stakeholders in the early part of the year.
The Board has already held a very successful R & D Fair and Conference and it is already building on the momentum to set up a R & D Steering Committee to guide the R&D implementation plan and other initiative such as R&D Centres of Excellence; on sector Linkages, NCDMB has been on the forefront of advocacy for the utilization of in-country capacities beyond oil and gas industry.
The country has local capacities in manufacturing of pipelines, cables and paints that can be utilized in the construction and power sector of the economy. The service providers are also being encouraged to venture into the construction sector to utilise their equipment and project delivery.
Within the last one year NCDMB has made a big leap in going paperless.
On the strength of the discoveries of abundance in in-country capacities, the Board has issued directives that electrical cables procurement, coating of all line-pipes and threading of Oil Country Tubular Goods (OCTG) are to be carried out in Nigeria.
The management of the Board has launched the upgraded NOGIC JQS platform so that transaction such as application of expatriate quota, Nigerian Content equipment certificates, and marine vessel categorization can now be carried out online.
In its efforts to domicile manufacturing, the Board has progressed the Nigeria Oil and Gas Park scheme in five states. Another major progress by the Board is the firm arrangement for provision of 24/7 power supply to the industrial park has the materialised as this is a core enabler for domiciliation of manufacturing in-country.
AS a way of aggregation of Industry Business Plans, NCDMB has complied
a compendium of industry opportunities and posted them on its website. (COMMEND)
Besides, NCDMB has commenced the implementation of a 10-startegic roadmap, the roadmap is meant to increase in-country value retention from the current 28% to 70% with the next ten years. At a glance the 10-years Strategic Roadmap has five pillars and four enablers.
Under the Technical Capability Development plan, NCDMB will provide support to the Egina FPSO integration service to demonstrate in-country capabilities the industry stakeholders.
The management of the Board has also put in place 3rd party outfit to enhance compliance monitoring in the upstream, midstream and downstream sectors of the industry as well as sharpen intervention monitoring based on complaints and whistle-blower alert.
To enable business environment NCDMB has co-developed and implemented Service-level agreement on process that interfaces with operation and other external stakeholders as recently executed with NLNG.
It is boosting it organisational capacity even as works on the new NCDMB headquarters in Yenagoa, the capital of Bayelsa State is progress and the 1000 seater auditorium which will host the next PNC in 2018 is near completion.
While NCDMB will provide inputs into the various legislative processes as required to enhance sectorial linkages in local content practice, the regional marketing of some of the infrastructure is being developed such as the FPSO Integration is being vigorously pursued.
The impact of the Nigerian content policy on other sectors of the economy is very critical to the success of the policies of the present administration given the comprehensive scope of the Nigerian content law cutting across manufacturing, services, human capital development, community integration and institutional collaboration.
The Nigerian Content policy of the Federal Government is emphatically about promoting value addition in-country which has been demonstrated in the several regulations, pronouncement and policy direction.
The NOGIC Act mandating utilization of locally made goods and services in all aspects of the oil and gas value chain has created the needed demand to induce investment in the local economy.
NCDMB has set clear direction for the actualisation of its mandate. The management has instituted a template that will serve as a catalyst for the sustainable Nigerian content development and implementation in the oil and gas sector.
The NCDMB management has made progress in the areas covered by its mandate as contained in the NOGICD Act, especially the improvement in human capital development and initiating infrastructural projects.