Nigeria Spent $20.4bn on 5 Local Content Categories from 2016-2020 – NCDMB boss
By Chibisi Ohakah, Abuja
Executive secretary of the Nigerian Content Development Board (NCDMB), Engr. Simbi Wabote, has emphasized on monitored levels of Nigerian Content in five categories showing that that oil companies in Nigeria spent about $20.4 billion in the categories in the past five years from 2016 to 2020.
Speaking at the ongoing 10th Practical Nigerian Content Conference with the theme “Driving the Nigeria Content in the Dawn of Petroleum Industry Act,” organized by the NCDMB in Yenegoa, Engr. Wabote said that Nigeria retained $4.2billion out of $4.7billion representing 89% of the spending on engineering services while in project management.
In services, he said $441million out of $1.12billion representing 37 per cent was retained by local companies, while $1.5billion out of $5.7billion representing 27 was retained in the procurement of materials. In fabrication services, $1.98billion out of $8.07billion representing 25 per cent was retained.
According to him, the aggregated level of Nigerian Content across the five categories amounted to 42 per cent. He admitted that although performance in Engineering was above the 70 per cent target, there was a need to focus on the other two areas fabrication and procurement of materials if the country would achieve the 70 per cent target by 2027.
“That is why we are keen to ensure that the established in-country fabrication yards are utilized for sanctioned projects such as NLNG Train- seven as well as drive local manufacturing of goods such as chemicals, hardware, spares, accessories, and other consumables via our commercial venture partnerships and our oil and gas industrial parks,” he said.
The NCDMB boss further stated that in the overall, the board believes it is on track towards the 70 per cent Nigerian Content target, but will still need the support of all industry stakeholders to make it happen.
He informed that the board would commission and commence operations at Nigerian Oil and Gas Park Scheme (NOGaPS) sites in Emeyal, Bayelsa and Odukpani, Cross Rivers State and complete the engineering design of Brass Island Shipyard while embarking on roadshows to secure investment partners.
NCMDB is also commissioning the 2,000 bpd Atlantic Modular Refinery in Brass, the 400,000/year Rungas LPG composite cylinder manufacturing plant in Polaku, Bayelsa State, the 48,000 litres/day Base Oil production plant located in Omagwa Rivers State, the 30MMscf Nedo gas processing plant and the 300MMscfd gas hub tied to the OB-3 pipeline in Kwale, Delta State, he said.
Engr. Wabote has been at the forefront of advocacy towards the expansion of the local content laws in Nigeria. According to him, the Nigerian National Assembly is being engaged in the review of the Nigerian Oil and Gas Industry Content Development Act to make it more effective.