By John Ikani
The Nigerian Content Development and Monitoring Board (NCDMB) is perfecting plans to issue policy directives regarding the domestic manufacturing capabilities of essential equipment used in the oil and gas industry.
The equipment grouped into categories that include pumps, flanges, valves, and others, account for a significant portion of capital and operational expenditures.
Engr. Simbi Wabote, the Executive Secretary of the NCDMB, revealed the plan while receiving the report from the industry-wide implementation committee responsible for in-country manufacturing of pumps, valves, flanges, gaskets, bolts, and nuts.
The committee, comprising members from international and indigenous operating and service companies, as well as NCDMB staff, was established on July 7, 2022.
During the submission of the report in Abuja on Wednesday, the committee’s chairman, Mr. Cyprain Ojum, emphasized the importance of the eight major equipment categories in various oil and gas operations.
The categories, namely pumps, valves, flanges, gaskets, bolts, nuts, meters, and instrument fittings, play a vital role throughout the production field, transportation and transformation processes, and distribution and sales of oil and gas products.
Ojum stressed that “regular inspections, maintenance activities, shutdowns, and daily production operations necessitate the repair or replacement of the equipment categories, resulting in substantial costs over the years.”
He recommended the establishment of in-country manufacturing facilities for these components to support operations, enhance local content, and strengthen the national economy.
Furthermore, Ojum expressed confidence that “achieving the Nigerian Content target of 70% by 2027 and retaining $14 billion within the economy is feasible, with in-country manufacturing of the eight major equipment categories playing a significant role in attaining this goal”
Describing the committee’s work program, Ojum highlighted that “over a period of 12 months, members extensively researched, assessed, visited, evaluated, and documented local manufacturing capacity for these critical equipment components and accessories in Nigeria’s oil and gas operations.
“They meticulously surveyed 12,000 service companies, visiting each facility that claimed to possess substantial capacity in the specified areas.”
Upon receiving the report, the Executive Secretary of the NCDMB, Engr. Simbi Kesiye Wabote, commended the committee for their diligence, dedication, and unwavering belief in the country.
He assured them that “the Board would carefully review the report and implement its recommendations in the short, medium, and long term.”
Engr. Wabote emphasized that the implementation of Nigerian Content is an ongoing process, with certain targets and percentages outlined in the Nigerian Content Act serving as aspirations.
While emphasizing the pragmatic approach taken in implementing Nigerian Content while safeguarding the companies that have invested in local capacity, Engr. Wabote referred to a previous study commissioned by NCDMB on in-country manufacturing of personal protective equipment, which led to the issuance of a policy to the industry.
He reiterated that “the fundamental objective of local content implementation is to eliminate briefcase contractors, add value domestically, and create employment opportunities for Nigeria’s population.”
The Executive Secretary also announced that the Board would soon establish a similar committee focusing on the local manufacturing of production chemicals.
He stressed the importance of Nigerian companies being capable of manufacturing production chemicals used in the oil industry, considering that 70% of these chemicals consist of water.
Wabote highlighted existing petrochemical plants, such as Dangote and Indorama, suggesting that production chemicals could be derived from the facilities for use in the oil and gas industry.
