NCDMB Retains 70% Nigeria’s Oil Industry Annual Expenditure Budget
The Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr Simbi Wabote, has confirmed that as a result of Local Content Act implementation, the board retained the sum $6.4 billion of yearly spend.
He said that while efforts are on-going to achieve 70 per cent, the amount retained by the board represents 32 per cent value retention of the $20 billion yearly spend in the oil and gas industry.
Wabote made this at the Nigerian Content Capacity Building workshop organised for media stakeholders in Port-Harcourt. He stated that the board advanced the implementation of the 10-year strategic roadmap, held the checkpoint review session for the roadmap, continued the construction of oil and gas industrial parks, secured the Final Investment Decision (FID) and award of contracts for the NLNG Train 7.
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According to Wabote, only five per cent was being retained when the Nigerian Content Act was enacted in 2010 and that the percentage grew to 26 per cent in 2017.
He reiterated that the vision of the Nigerian Content 10-Year Strategic Roadmap is to achieve 70 per cent value retention by 2020, stressing that other targets are creating 300,000 jobs, retaining $14 billion out of $20 billion yearly industry spend, building shipyards and manufacturing facilities.
In his presentation, general manager, corporate communications and zonal coordination division, NCDMB, Dr. Ginah Ginah, hinted that the Board and operating oil companies had jointly deployed the Community Content Guideline (CCG), which provides a framework for engaging youths of host communities in employment, training and contracts.
The CCG also provides for the establishment of critical infrastructure to stimulate development, attract new businesses to host communities and sustain the growth of host community entrepreneurs through funding and policy support.
One of the key provisions of the CCG is that 100 per cent of unskilled job roles should be reserved exclusively for indigenes of the host community of projects, while 50 per cent of semi-skilled roles should be exclusively reserved for indigenes of host communities.
Similarly, at least 10 per cent of skilled roles are to be reserved for the indigenes of host communities.
The General manager, strategy and transformational projects, NCDMB, Abayomi Bamidele, represented by the supervisor, strategy and transformational division, NCDMB, Olabisi Okunola, stated that the mid-term review indicated that it was imperative to grow Nigerian Content attainment by 11 per cent year on year to achieve the targets set in the Nigerian Content 10-Year Strategic Roadmap.
According to him, the Board had initiated some steps to extend coverage to other segments of the oil and gas industry such as catalysing modular refineries and gas value chains, and accelerating sectoral linkages with key input industries like the steel sector and securing additional finance for key industry needs.
By Chibisi Ohakah, Abuja