NCDMB:
FORGING AHEAD TO A PROGRESSIVE FUTURE
Local Content Act was promulgated
in 2010 in order to improve and develop Nigeria’s oil industry by aiding and
giving opportunities to indigenous operators. Sequel to the Act was the
eventual creation of Nigerian Content Development and Monitoring Board (NCDMB),
to oversee and strengthened the Act.
The NCDMB is headed by an
Executive Secretary (ES) to manage its affairs. One man that has brought
face-lift and re-organization to the Board, is Engr. Simbi Wabote, its current
ES, and with tenacity, vision and passion, he has driven Local Content practice
in Nigeria to a reasonable height.
Delivering his keynote address at
the 8th edition of the Practical Nigerian Content (PNC) with the
theme “Driving Economic Development and Sustainability” which was held in
Yenegoa, Bayelsa state, Wabote highlighted to chief executives of International
Oil Companies (IOCs) and their indigenous counterparts of his plans for Local
Content drive.
The 8th PNC had array
of seasoned professionals in the oil and gas industry lined up to share their
vast knowledge and experience.
Wabote introduced ten-year
strategic roadmap aimed at increasing Nigerian Content from the current level
to 70% by 2027. He explained that the Board will utilize forum like PNC to
provide update on progress of the strategic roadmap.
The ES itemized promises and
plans that were made in previous years. The Board’s ten-year strategic plan is
hinged on five pillars and four enablers. The pillars are technical capability
development, compliance and enforcement, enabling business environment,
organizing capacity and sectorial regional market linkages.
These four enablers are: funding,
regulatory environment, collaboration and stakeholder engagement including
research and statistics. Each pillar is backed with strategic initiatives with
a project management officer or office set up to drive its implementation.
Wabote reiterated that “Ten years may appear far off but the first year has
been spent on the roadmap and we are left with nine years to deliver on our journey.”
First year of the journey has been used to put in place foundations that will
enhance the realization of target set up for the Nigerian Content level.
The NCDMB boss made it known that
as at the end of 2018, it was reckoned that Nigerian Local Content achieved its
30% objectives. On the technical capability development pillar where it was
promised to provide support for the Egina FPSO integration activities to
demonstrate that it is possible to integrate FPSOs in-country, it is common
knowledge that the Board achieved its objective which represents another dent
or claims by nay sayers that such feat could not be performed in Nigeria.
Other feats achieved by NCDMB
includes the commencement and infrastructural development of its industrial
parks and international certification programme for 20 marine personnel.
Another signature achievement is the provision of support to catalyze the
establishment of a 5000 per day modular refinery in Ibigwe, Imo state.
Besides, in 2019, plan to support
the establishment of two more modular refineries and participate in LPG value
chain if the condition precedence are in place. The Board has progressed the
infrastructural development of industrial parks, finalize review of offshore
rig acquisition strategy and ensure positioning of 20 trained marine personnel
for one year international sea time in fulfilment of requirement for
certificate of competency. According to Wabote, the second pillar has to do
with compliance and enforcement. The Board will put in place third party
monitors to enhance compliance monitoring in the upstream, midstream and
downstream sectors of the oil industry. The ES said after thorough tendering
and selection process, the programme has commenced tailored along section 64
and 65 of the Nigerian Oil and Gas Content Act (NOGIC).
As part of its success, NCDMB has
commenced forensic audit of remittances to establish compliance with provision
of Nigerian Content Development Fund. In 2019, the Board intends to deepen and
widened the role of third party monitoring service providers for effective
monitoring of 51 operating companies with 8000 oil and gas service providers
registered on the NOGIC JQS.
In addition, the Board will also
expand its compliance and enforcement framework to cover marginal field operators,
midstream and downstream sectors.
On the pillar for enabling
business environment, NCDMB will co-develop and implement service level
agreements with key stakeholders. Some these agreements have been signed with
Oil Producing Trade Section (OPTS), Nigerian Liquefied Natural Gas (NLNG) and
Independent Producers. Part of the content of service level agreement is that
there will be application of a 15 day rule, any request for approval of
endorsement to NCDMB that operators does not receive approval within 15 days,
means the request has been approved. For this, no operator has challenged the
Board for not meeting this obligation.
The NCDMB boss explained further
that the Board will enhance the provision of constant power to aid
manufacturing in industrial park sites. The site construction is ongoing which
will be for provision of gas fired power plants for the park in Bayelsa while
communication has been opened with the NIPP station in Odukpani, Cross River
state for power supply as well.
Wabote commended the Nigerian
National Petroleum Corporation (NNPC) and National Petroleum Investment
Management Services (NAPIMS), for supporting the project to ensure that the
Board establishes within Bayelsa, a 25 MegaWatts power plant that will provide
power for NCDMB head office and some critical state infrastructures. The ES
appreciated its host Bayelsa State Government for partnering with the Board in
setting up an SPV to manage power plant like a private business.
The Board has delivered numerous
youths prgrammes which include training of 120 youths under the graduate and
agriculture entrepreneurial training programme. Through this initiative, 50
youths were sponsored for training at the Lagos State Power Academy and over
226 youths trained under various initiatives based on the Board’s training
programmes. In 2019, the Board plans to firm up power supply engagement for
industrial park in Cross River state and carry out youth empowerment programmes
to enhance conducive business environment and establish a functional customer
service desk.
Under the organizational
capability pillar, Wabote said, NCDMB has targeted the completion of its new
headquarters in Yenegoa, in 2018, but was unable to deliver it due to late
arrival of some of construction materials for the project. The ES assured that
as part of its progressive mandate, the project will be delivered in 2019, it
is at 92% completion level. Surprisingly, the magnificence edifice is being
constructed by an indigenous company paving way for Local Content drive.
In other areas, the Board has
also deployed new organizational structure which has been manned. It has
completed inter departmental service level agreements as part of efforts aimed
at approving internal efficiency. By 2019, NCDMB staff will relocate to its new
operational base where cogent issues will be managed.
Wabote emphasized on sectorial
regional market linkages, NCDMB has delivered on its promise to provide in-puts
into various legislative processes as required to enhance sectorial linkages in
Local Content practice. Nigeria will continue to service as resource country
for the development of African Local Content policy.
As part of his plan for NCDMB,
Wabote added that in 2019, the Board plans to validate by prioritizing
opportunity sectors for Local Content development. Regional marketing of some
of its infrastructures being developed such as the FPSO integration facility
will further be pursued.
On the four enablers: the Board’s
has launched a $200 million Nigerian Content Intervention Fund. As at the end
of October, $21 million has been lent to beneficiaries while in 2019, the Board
intends to develop and launched its investment policy to provide flexibility to
funding and investment interventions.
With regards to regulatory
environment, the ES said the Board has delivered on judges’ sensitization
workshop in the NOGIC Act as a prelude to prosecution of non-compliance cases
in courts. There was stakeholders’ workshop on operational guidelines and
drafted ministerial regulations. The Board intends to finalize and secure
approval of ministerial regulation in 2019.
For collaboration and stakeholder
engagement, Wabote was of the view that the Board will sharpened its
inter-agency collaboration across board. NCDMB has established collaborations
with the Nigerian Customs Service, Economic and Financial Crimes Commission
(EFCC), NNPC, NAPIMS, Nigeria Immigration Service, Federal Aviation Authority
of Nigeria (FAAN) among others. It plans to consolidate and sustain these
collaborative efforts in 2019 through the joint committees put in place to
deepen inter-agency collaboration. There is need to strengthened sectorial
groups under the Nigerian Consultative Forum as a credible platform to get
regular feedback from industry practitioners.
Research and Statistics cannot be relegated to
the background. The Board has inaugurated Research and Development Council and
it has commenced the development of ten-year research and development road-map
that will guide R&D effort over the next ten years. Wabote said R&D framework
has been established and data analysis from marine vessels demand has also been
completed with key industry needs on vessel types and manning levels
established as well in close collaboration with NAPIMS. R&D roadmap will be
launched in 2019 for implementation. These are the future projections of NCDMB
for 2019 and going forward.
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