IPPG: FG’s Local Content Policy Has Succeeded in Boosting Indigenous Oil Firms’ Capacity

Peter Uzoho

The Independent Petroleum Producers Group (IPPG) has said the federal government’s effort in deepening local capacity in the Nigerian oil and gas industry through the implementation of the Nigerian Content Policy has started paying dividends.

The group stressed that it was imperative that the effort be sustained and greater focus placed on bridging the capacity gap and addressing funding challenges.

Chairman of IPPG and Waltersmith Petroman Oil Limited, Mr. Abdulrazaq Isa, stated this in his keynote address at the just concluded 11th Practical Nigerian Content Forum (PNC) in Uyo, Akwa Ibom State, with the theme, “Deepening Nigerian Content Opportunities in the Decade of Gas.”

He noted that the 27-member indigenous oil and gas exploration and production group was a product of the Nigerian Content policy of the federal government, which he described as a clear testimony that the policy had recorded huge success.

“The emergence of the strong indigenous exploration and production companies is a testament to the successful local content policy. There is no better or clearer way to demonstrate that Nigerian Content is working.

“Nigerian-owned companies are beginning to play more active roles across the industry. Indigenous companies are now penetrating areas that were once solely dominated by foreign players,” Isa said.

He reaffirmed IPPG’s commitment to full compliance with the provisions of the Nigerian Oil and Gas Industry Content Development (NOGIC) Act.

He added that the group would continue to partner with the Nigerian Content Development and Monitoring Board (NCDMB) and all relevant stakeholders in a bid to strengthen in-country capacity and increase Nigerian Content for the benefit of the industry and the country at large.

The IPPG chairman stated that the theme of the conference – “Deepening Nigerian Content Opportunities in the Decade of Gas,” underscored the importance of re-positioning Nigeria’s oil and gas industry in the face of the ongoing global energy transition as well as divestment of assets by the International Oil Companies (IOCs) in Nigeria.

According to him, “the journey towards de-carbonisation of the energy mix is well underway and Nigeria cannot afford to be left behind. Our focus as an industry in the short to medium term must be to rapidly exploit our hydrocarbon assets for the socio-economic transformation of our country and deploying same to guarantee our energy security.

“It is reassuring that proactive and concerted efforts are being undertaken by Government, in particular, towards pushing gas as a major pathway for Nigeria’s Net Zero 2060 commitment.”

The IPPG chairman also stated that the group fully supports the declaration of 2021-2030 as the, ‘Decade of Gas’ and would work with all stakeholders to harness Nigeria’s gas resources as the policy has provided the country an opportunity to “galvanise the industry to fully utilise and commercialise the nation’s abundant gas resources to rapidly catalyse other sectors of the economy.”

He also felicitated with the Minister of State for Petroleum Resources, Chief Timipre Sylva, for the major role he played in the realisation of President Muhammadu Buhari’s vision for the oil and gas industry.

He also commended the Executive Secretary of the NCDMB, Mr. Simbi Wabote, for organising the annual PNC forum which he described as “the flagship event that has provided an opportunity to see Nigerian Content in Action by highlighting the monumental achievements recorded to date.”