NCDMB Midwives Annual Production of 1.2Million Gas Cylinders, Secures $50Million for Manufacturers – Wabote

Segun Atanda/

The annual production of 1.2million Gas Cylinders, starting from this year, and the approval of a $50million support for Nigerian manufacturers of oil and gas equipment were today listed among the gains of Local Content Development in the Oil & Gas Industry.

Counting Nigeria’s blessings after years of driving local content as a key development imperative, the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Wabote announced that over 50,000 direct jobs were created by the agency, and 300, 000 more are in the pipeline.

Presenting NCDMB’s scorecard to the Guild of Corporate Online Publishers at the Sheraton Hotel in Lagos, Wabote revealed that after massive capital flights of over $380 Billion and an estimated two million job losses over a 50-year period, Nigeria now has “a well-established local content in the oil and gas industry such that other nations are even coming to learn from us”.

Stressing the need to extend it to other sectors of the economy to further drive National Development in the growth trajectory, Wabote said that the COVID-19 pandemic brought home the reality that every economy needs to develop local capacities and capabilities in the core sectors.

He said, “Nigeria moved from near zero participation in the oil and gas sector to the point that our indigenous operators such as SEPLAT, AITEO, EROTON, and others are now responsible for 15% of our oil production and 60% of our domestic gas supply.

“Before the Act, we had annual spend of $20 billion, with little or nothing retained in-country. Today, we now spend more than $8 billion in-country per year.

“We now have two world-class pipe mills and five impressive pipe coating yards

“More than 40% of marine vessels used in the oil and gas industry are now owned by Nigerians.

“In fabrication, today Nigeria can handle fabrication of more than 250,000 Tonnes per annum.

“Over 10 million training manhours have been delivered via our Human Capacity Development Programs. No surprise that our indigenous workforce was able to sustain oil production at the peak of the COVID-19 pandemic lockdown.

“Over 50,000 direct jobs have been created on the back of the implementation of the NOGICD Act.”

Wabote also listed among the accomplishments of NCDMB, the completion and commissioning of a 17-storey headquarters building – the Nigerian Content Tower in Yenagoa, complete with a 1,000-seater conference auditorium and multi-level car park; the completion of a 10MW power plant for the supply of electricity to the Nigerian Content Tower and the industrial park in Bayelsa State; the completion and commissioning of the 5,000bpd Waltersmith Modular Refinery at Obigwe, Imo State, now in operation with the products completely sold out.

According to the Executive Secretary, NCDMB also launched the $350million Nigerian Content Intervention Fund managed by the Bank of Industry and NEXIM Bank for single-digit loans for Asset Acquisition, Manufacturing, Loan Refinancing, Working Capital and Loan for Women in Oil and Gas.

“The only infrastructure in Africa for FPSO integration is available in Nigeria. The Egina FPSO which is the largest in the world was integrated at the SHI-MCI Yard in Lagos,” he said.

Other NCDMB accomplishments included the completion of GSM training scheme for about 4,000 trainees in Kano, Bauchi, Yobe, Kaduna, and the Cross River States as part of the development of linkage sectors; the upgrade of two Vocational Technical Colleges in Akwa Ibom and Enugu states, and the launch of NOGTECH HACKATHON and ENACTUS STIC to nurture innovation amongst young minds.

He said, “NCDMB inaugurated a $50million Nigerian Content Research & Development Fund to drive basic research, commercialization of research breakthroughs, the establishment of Centers of Excellence, and to sponsor University endowments.

“The Board floated a $50m special loan product for women in the oil and gas business to enable empowerment of the womenfolk in the industry.

“We also established another $30m Working Capital Fund to support oil and gas service companies. Both the Women and Working Capital funds are managed by Nexim Nigerian Export-Import Bank.

“Last Thursday we secured the approval of our Governing Council to set up a USD$50 million fund for NOGAPS Manufacturing Product Line, to be dedicated to companies that would operate in the Nigerian Oil and Gas Parks, being constructed by the Board in Bayelsa and Cross River States. The beneficiaries would engage in the manufacturing of equipment components used in the oil and gas industry and linkage sectors.

“Capacity Development Initiative for the Completion of the Block Tower and Workshops in the PTDF Skills Development Center at Omagwa, Port Harcourt, Rivers State.

“The level of Expatriate Quota has continued in a downward trend due to our stringent monitoring activities and collaboration with the Ministry of Interior. We continue to utilize the Exchange Program and the Understudy Program under the Expatriate Quota regime to develop the required skills in the industry.

“Construction of oil and gas industrial parks spread across six states complete with the provision of infrastructure and utilities to enhance local manufacturing.”

NCDMB has engaged in partnerships for the local manufacturing of 1.2million composite LPG cylinders per year with the 1st phase scheduled for commissioning in 2022; for the establishment of additional modular refineries in Bayelsa and Edo States; for the construction of 300MMscfd gas gathering hub for gas supply into the OB-3 pipeline in Edo State; to deepen LPG utilization in the North with the roll-out of LPG bottling plants and depots in ten (10) Northern States of Kaduna, Bauchi, Katsina, Kano, Nasarawa, Niger, Plateau, Gombe, Zamfara, Jigawa and Abuja, and to establish base oil manufacturing plant in Omagwa, Rivers State.

Wabote said, “We now boast of very high engineering design capacity as Nigerian companies now have the required skills to do conceptual, FEED, and detailed engineering designs.

“We now have capacity to manufacture low, medium, and high voltage cables and paints that can match any standard or quality in any part of the world.

“These are just a few of the achievements through the adoption and implementation of local content in the oil and gas industry.

“It is important to state here that our plan in NCDMB is that by 2027, we will ensure 70% Nigerian Content; creation of 300, 000 direct jobs; retention of USD$13Bn of the estimated USD$20Bn spend in the oil and gas industry; ensure the domiciliation of major fabrication yards and manufacturing hubs in-country.”

Wabote was accompanied by Dr. Ginah O. Ginah, the General Manager, Corporate Communication and Zonal Coordination, NCDMB; Barr. Esuene Dan Kikile, Manager, Corporate Communication Department, NCDMB; Barr. Naboth Onyesoh, Head, Directorate of Legal Services, NCDMB; Engr. Abayomi Bamidele, General Manager and Senior Technical Assistant to the ES, NCDMB, and a guest presenter, Barr. Kemela Okara of Vale Partners and former Secretary of Bayelsa State Government, who spoke on Media Practice and the Law.

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