The Nigerian Content Development and Monitoring Board (NCDMB) has said the country saved about $8 billion annually with the implementation of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.
Executive Secretary of NCDMB, Mr. Simbi Wabote, stated this during separate breakfast meetings held with members of the Guild of Corporate Online Publishers and editors of newspapers and broadcast stations at the weekend.
He hinted that a pointer of the marked improvement in Nigerian content implementation is that the local economy used to retain little or nothing from the annual oil industry spend of $20 billion before the NOGICD Act, 2010 but is now able to retain more than $8 billion in-country per year.
According to him, the improvement is because of the development of critical capacities and assets by local oil and gas service companies and increased domiciliation and domestication of industry operations, he said.
Wabote added that the implementation of NOGICD Act has created over 50,000 direct jobs in the local economy over the past 11 years. He hinted that the level of Nigerian content in the oil industry hovered around five percent before the enactment of the NOGICD Act in 2010, however, the focused implementation of the Nigerian Content Law resulted in an increase to 26 per cent in 2016 and 42 per cent as at December 2021.
Wabote explained that NCDMB had launched the Nigerian content 10-Year Strategic Roadmap in 2017, with a target to achieve 70 percent Nigerian content by 2027.
As part of this goal, he said the Board would catalyze the creation of 300, 000 direct jobs in the oil and gas industry and linkage sectors, enable the retention of $13billion out of the estimated annual $20billion spend in the oil and gas industry and establishment of major fabrication yards and manufacturing hubs in-country.
According to the NCDMB boss, Nigeria has also moved from near zero participation in the operations side of the oil and gas sector “to the point that our indigenous operators such as SEPLAT, AITEO, EROTON, and others are now responsible for 15 per cent of oil production and 60 per cent of domestic gas supply.”
Other major accomplishments of Nigerian Content implementation include the establishment of two world-class pipe mills and five impressive pipe coating yards, the ability of Nigerian firms to fabricate more than 250,000 tonnes of steel per year and ownership of more than 40 percent of marine vessels used in the oil and gas industry by Nigerians.
The Executive Secretary further stated that over 10 million training manhours have been delivered via the Board’s Human Capacity Development Programs, adding that “it was no surprise that our indigenous workforce was able to sustain oil production at the peak of the COVID-19 pandemic lockdown.”’