Nigerian Content in Oil, Gas Industry Hits 54% in 2022

•NCDMB charges indigenous companies on compliance

Emmanuel Addeh in Abuja

Mid-way into a 10-year Strategic Road Map for enhanced indigenous participation and utilisation of local assets in oil and gas operations, industry regulator Nigerian Content Development and Monitoring Board (NCDMB) has recorded a 54 per cent Nigerian content level in 2022

Presenting a status report at the 11th Practical Nigerian Content (PNC) Workshop organised by the Board in Uyo, Akwa Ibom State, the Executive Secretary NCDMB,  Simbi Wabote explained that the average Nigerian content performance in the last five years is 44 per cent, which represents the period the 10-year Nigerian Content Strategic Roadmap has been implemented so far.

He indicated that the performance in 2022 above is well above the 42 percentage target set by the Project Management Office (PMO), just like in 2021 when 42 per cent was achieved, above the target of 38 per cent.

He confirmed that the tracking of the performance was based on the Board’s monitoring and evaluation of industry activities.

The technical capability development pillar of the roadmap, he said, stands out as a major highlight as fabrication and construction, hitherto under near-total dominance by foreign firms, had 99 per cent Nigerian content during the period under review.

He further disclosed that 77 out of 96 initiatives under the short- and medium-term  categories of the roadmap had been completed in November 2022.

Wabote stated that manpower in the oil and gas industry had reached 81 per cent Nigerian content as of November, while project management as of that month was 80 per cent.

 Zeroing in on year 2022, the executive secretary revealed that performance was largely driven by the contracts awarded under the Nigerian Liquefied Natural Gas Train 7 Project.

However, he stated that the low points in accomplishment were in procurement, engineering and services, with Nigerian ontent as unimpressive as 34, 46, and 50 per cent respectively. These, he assured, would be sufficiently addressed, going forward.

Technical data, cited by Wabote showed the capture of 12 new indigenous operators in the upstream sector of the oil and gas industry, bringing the total to 97.

In the service subsector, there were 1,303 new corporate entrants, raising the total to 9,532, while 22,512 individual registrations were recorded, bringing the total to more than 271,000. 

The executive secretary informed stakeholders that the Board has commenced the process of allocation of serviced plots to manufacturers of equipment components, spares, and tools required in petroleum industry operations to kick-start operations within the industrial parks at Emeyal 1, Bayelsa State, and Odukpani in Cross River state.

He expressed the Board’s displeasure at the activities of indigenous oil and gas companies, which seek to undermine its effectiveness after they had benefitted from strategic interventions in funding and capacity building programmes of the organisation. He advised them to turn a new leaf and ensure compliance with regulations or face the consequences.

In his own remarks , the Nigerian National Petroleum Company Limited (NNPC),  Group Chief Executive,  Mele Kyari , assured the nation that the effort to deepen the utilisation of gas to drive industrialisation and economic development was very much on course.

While emphasising Nigeria’s interest in gas as energy transition fuel, he stated that gas will continue to provide the opportunity to power the global economy.

Among several projects embarked upon by government, he cited the multibillion dollar Nigeria-Morocco Trans Saharan Gas Pipeline, which had taken him to Morocco recently.

Feedstock for the pipeline, he explained, would be from faraway Brass in Bayelsa State. He further said: “We will complete the OB-3 (East-West pipeline, with a projected capacity of two billion standard cubic feet) pipeline.”

In a welcome address, the Governor of Akwa Ibom State, Mr. Udom Emmanuel, expressed the joy of the people of the State for the opportunity to host the PNC for a second time.

Represented by the Deputy Governor, Mr. Moses Ekpo, he stated the desire of the state to be considered in plans for oil and gas producing states.