Oritsegbubemi Omatseyin

Lagos — The Nigerian Content Development and Monitoring Board, NCDMB, stated that the three Executive Orders signed by President Bola Ahmed Tinubu in March 2024 regarding the oil and gas sector did not diminish the importance of the Nigerian Oil and Gas Industry Content Development, NOGICD, Act in governing the activities of the oil and gas industry.

One of the main messages from the Local Content Masterclass and panel discussion took place during the African Energy Week, which commenced in Cape Town, South Africa. The panel discussions emphasized Nigeria's achievements and procedures in local content, offered valuable insights for other African oil and gas producing nations, addressed misunderstandings, and set the stage for investment in Nigeria's oil and gas sector.

The panel consisted of the Director for Capacity Building, Engr. Abayomi Bamidele, the General Manager for Monitoring and Evaluation, Mr. Silas Omomehin Ajimijaye, and the General Manager of the Nigerian Content Development Fund, Ms. Fateemah Mohammed, with the session being led by the General Manager of Corporate Communications at NCDMB, Dr. Obinna Ezeobi.

Providing clarification on the Presidential Directives, Engr. Bamidele noted that certain oil and gas industry players significantly misunderstood the directives, believing that the NOGICD Act had been set aside or ignored, and therefore they were no longer obligated to follow its provisions.

The President's Special Advisor on Energy needed to explain that the Presidential Directives did not disregard local content. They only required that current capabilities be utilized and that intermediaries be removed from the contracting process.

The three Executive Orders include the Presidential Directive regarding Local Content Compliance, the Presidential Directive aimed at reducing costs and timelines in Petroleum Sector Contracting, and the Presidential Directive concerning Oil and Gas Companies (Tax Incentives, Exemptions, Remissions, etc.)

Bamidele stated that the NCDMB has simplified its contracting approaches to match the Presidential Directives, reduced the number of contact points in the contract approval process from 9 to 5, thus helping to shorten the industry's contracting cycle, lower project costs, and encourage new oil and gas projects by existing oil and gas companies.

He stated that certified international service companies are now eligible to receive Nigerian Content Equipment Certificates, enabling their direct involvement in deepwater operations within the Nigerian oil and gas sector, as outlined in the NOGICD Act. "This policy will encourage investments in the industry and aligns with the Presidential Directives," he explained.

Regarding the Board's approach to capacity development for new oil and gas projects, Bamidele mentioned that preparations are underway to organize training sessions in fields that are currently in high demand within the industry. He emphasized the importance of consistently aligning capacity building efforts with industry needs and evolving trends.

"The Board is also dedicated to advancing key infrastructure like the Brass Island Shipyard, with assistance from NLNG, as well as finishing and putting into operation the Nigerian Oil and Gas Parks in Odukpani, Cross River State, and Emeyal-1 in Bayelsa State," he suggested.

A counselling sister to African nations, Bamidele emphasized that local content and capacity development strategies need to be tailored to each country, and that decision-makers should grasp the mindset and skill levels of their own people. He also recommended that local content policies and capacity building approaches must be suitable and practical in line with the host country's technological, educational, and human resource capabilities.

As he delivered his remarks, the General Manager for Monitoring and Evaluation, Mr. Silas Omomehin Ajimijaye, described the strong system the Board utilizes to oversee companies' implementation of oil and gas projects, ensuring adherence to the regulations set forth by the NOGICD Act, and maintaining substantial economic value.

Regarding the effect of divesting oil and gas assets on Nigerian content adherence, he mentioned that the shift of assets to local operators has not adversely affected compliance. This is due to the Board maintaining the compliance procedures it had set with earlier owners. "The Board is prepared to assist new companies in dealing with any compliance issues they may face," he further noted.

Ajimijaye further emphasized the significance of strong research and development efforts in attaining sustainable local content growth. He mentioned that NCDMB has created an R&D strategy and maintains regular cooperation with operating companies, service providers, the academic sector, and other pertinent organizations.

"Presently, NCDMB has set up six centers of excellence in prominent universities across the six regions of the country, while the Research and Development Fund has been utilized to assist in the commercialization of feasible projects, with 15 research concepts and innovations currently being supported to guarantee their effective development," he stated.

In her remarks, the General Manager of NCDF, Fateemah Mohammed, stated that the Nigerian Content Intervention Fund is a specialized financial program offering single-digit financing to Nigerian service companies, helping them expand their capabilities and take important roles in the oil and gas sector.

Providing information about the seven products offered by the NCI Fund, she focused on the Community Contractors Fund, a N50 billion financial initiative aimed at local community contractors, allowing them to access up to N100 million at single-digit rates to carry out contracts in the oil and gas sector and boost the local economy. Another distinctive offering is the US$20 million Women in Oil and Gas Intervention Fund, administered by the Nigeria-Export-Import Bank, intended to enhance the skills and abilities of women entrepreneurs and industrialists so they can fully engage in the Nigerian oil and gas industry.

Suggesting comparable funding programs to other African nations, Mohammed revealed the NCDMB's goal to expand the NCI Fund and work with additional financial organizations to facilitate bigger projects and improve the skills of the population.