Nigeria eyes $10b from local content in oil sector yearly
The Nigerian Content Development and Monitoring Board (NCDMB) yesterday said that local content in the oil and gas sector would hit 70 per cent, with hope that it would help the government to save $10 billion yearly.
At the 12th edition of the HSSE Forum, which focused on
“Nigerian Content Development: Facing The Future”, the Executive Secretary of
the board, Simbi Wabote, said the projections were achievable in the next 10
years.
The Nigerian Oil and Gas Industry Content Development Act,
which came out of decades of agitation for local value and benefits to
Nigerians, has facilitated the growth of local content to 31 per cent.
Wabote, who noted that as much as $380 billion was going out
of the country as capital flight when the content law was not in place, said
that about 300,000 jobs would be generated in a decade under the new
projections of the board.
According to him, the recent disruptions caused by COVID-19
pandemic should force Nigeria to prioritise local content development. Deputy
Managing Director, Deep Water, Total Upstream Companies in Nigeria, Ahmadu-Kida
Musa, said: “We believe in the development of local capacities and will
continue to work with all stakeholders, especially the NCDMB to ensure sustainable
economic development of Nigeria.”
He disclosed that the company makes a yearly expenditure of
over $40 million on corporate social responsibility in Nigeria. Using EGINA
FPSO as a testament of the company’s commitment to local content in Nigeria,
Musa described the vessel as the largest in the TOTAL Group and the first to be
fabricated and integrated in Nigeria with 77 per cent engineering man-hours
done in-country. According to Musa, 100 per cent of the project management
man-hours is being performed in Nigeria.
Managing Director of Shell Nigeria Exploration and
Production Company (SNEPCo), Bayo Ojulari, noted that recent executive order by
the country is pushing the need for local content in other sectors of the
economy.
He stressed the need for legislative backing to compel
policy in construction, power, ICT and others. Ojulari, however, said that the
fiscal instability and harsh operating environment in the country would affect
the pace of investment, slowing down efforts to grow the industry.
He also decried lack of technology know-how, state of
infrastructure and cost competitiveness. If local content is prioritised,
Ojulari expects reduction in lifecycle cost of projects and assets.
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