RESETTING FOR GREATER ACHIEVEMENTS
April 20th 2017 marks the 7th anniversary of the enactment of the Nigeria Oil and Gas Industry Content Development (NOGICD) Act. With a new administration of a place at the federal level and appointment of a substantive Executive Secretary for the Nigerian Content Development and Monitoring Board (NCDMB), This represents the perfect timing to carry out a review of the Act has been implemented.
The review will confirm areas where progress has been recorded as well as other areas requiring improvement. The outcome will form the building blocks for the Board’s 5-years strategic road map and guide the new wave of Nigerian Content development and implementation.
The Board has commissioned a reputable consultancy for this assignment and we eagerly expect the outcome.
In the meantime, we have initiated a number of policies, some of which are geared to reinvigorate Nigerian Content implementation despite the fall in crude oil prices since 2014.
One of such policies is the streamlining of the Contracting Cycle, which has been protracted challenge over the years. We have put in place internal performance measures to fast track the contract processing time from NCDMB’s end.
We have also come up with a Community Content Guideline which provides pragmatic steps for incorporating and engaging community contractors as a critical delivery point for Nigerian content development.
The Nigerian Content Opportunities Fair planned for March 2017 will help showcase opportunities in upstream, midstream and downstream sectors and present available capacity. Nigerian companies and manufacturers can thereafter tailor their business development strategy towards exploiting the opportunities thereby increasing value retention. It will also provide multinationals with the opportunities to lick up and utilize in-country capabilities as against importation of goods and services.
For some time now, the Board has been working on various strategies geared to improve access to the Nigerian Content Development Fund (NCDF). We will soon roll out clear guidelines on how the fund will be deployed. We have made it clear that oil and gas companies that default in their deduction and remittance to the NCDF stand little chance of benefitting from it.
To ensure that Nigerian take advantage of opportunities in the marine services sector of the oil and gas industry, we have reconstituted the joint committee with the Nigerian Maritime Administration and Safety Agency (NIMASA) on local content development in shipbuilding.
THE BOARD HAS
ACHIEVED A LOT
“The position of the NCDMB is very critical; it’s a driver for the industry, a driver on that objective. Our job from Abuja is obviously to support the Board, provide the regulatory guidance and hopefully provide financial assistance that it requires to be able to execute its projects. But I think the Board is on track. The Board has a very good history in the last five years and every Nigerian appreciates the good work that it has done and we just need to continue to provide it with the right support and encourage the Board to get to the Promised Land.”
IS A SUCCESS
“At Energy Works Technology, we took advantage of the opportunity created by the Nigerian Local Content Act to nurture our skills to the point we are today. The Local Content is a success because Nigerian companies, technicians and engineers have acquired expertise and built capacities that have increased indigenous participation to the Nigerian Oil and Gas sector.”
The Nigerian Content Development and Monitoring Board (NCDMB) is the Agency of the Federal Government vested with the mandate to make procedures that will guide, monitor, coordinate and implement the provisions of the NOGICD Act signed into Law in April 2010. Key functions of the Board include:
- To review, assess and approve Nigerian Content plans developed by operators.
- To set guidelines and minimum content levels for project-related activities across the oil and gas value chain.
- To engage in targeted capacity-building interventions that would deepen indigenous capabilities- Human Capital Development, Infrastructure& Facilities, Manufactured Materials & Local Supplier Development.
- To grow and managed the Nigerian Content Development Fund.
- To establish, maintain and operate the Joint Qualification System (NOGICJQS) in conjunction with industry stakeholders.
- To monitor Nigerian Content Compliance by operators and service providers. This will be in terms of cumulative spending, employment creation and sources of local goods, services and materials utilized on projects and operations.
- To award Certificate of Authorization for projects that comply with Nigerian Content provisions.
- To conduct studies, research, investigate, workshops and training aimed at advancing the development of Nigerian Content.
Structure of the Board
OF FINANCE &
OF MONITORING &
OF PLANNING RESEARCH & STATISTICS
OF LEGAL SERVICES
The Act establishes the Governing Council to conduct and oversee the Affairs of the Board. The Governing Council is made up of:
- The Chairman who is the Honorable Minister of Petroleum Resources;
- Representatives of
- Nigerian National Petroleum Corporation (NNPC)
- Department of Petroleum Resources (DPR),
- Ministry of Petroleum Resources (MPR),
- Petroleum Technology Association of Nigeria (PETAN),
- Nigerian Content Consultative Forum (NCCF),
- Council of Registered Engineers of Nigeria (COREN),
- National Insurance Commission (NAICOM); and
- The Executive Secretary who is the Secretary of the Council and CEO of the Board;