By Chioma Iruke
The Executive Secretary of Nigerian Content Development and Monitoring Board (NCDMB) Engr. Simbi Wabote, has listed capacity building, funding and incentives, research and development, gap analysis, regulatory framework and access to market as key conditions for nations or sectors that seek to implement local content policies successfully.
The ES made the statement recently in a presentation he delivered to the 6th Ugandan International Oil and Gas Summit titled “Developing A World Class Local Content Structure.”
Drawing from the successful implementation of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, he underlined that entrenching a sustainable Local Content practice leads to development, empowerment, prosperity, and creation of employment opportunities for the populace.
He highlighted that Funding and Incentives are important to implementing Local Content programmes, developing infrastructure, attracting new investments, and keeping existing businesses afloat where required.
Dwelling on funding, Wabote explained that one percent of the value of contracts awarded in the upstream sector of Nigeria’s oil and gas industry is pooled into the Nigerian Content Development Fund (NCDF), adding that the NCDMB had deployed the funds in the launch of the $350 million Nigerian Content Intervention Fund (NCIF) in partnership with the Bank of Industry and NEXIM Bank. Other utilizations of the NCDF include ongoing development of Nigerian Oil and Gas Parks Scheme as manufacturing hubs, Construction of the new 17-storey headquarters building, 1000-seater International Conference Center and Partnership with project promoters in the establishment of modular refineries, LPG terminals, manufacturing of LPG Cylinders, and others.
The Executive Secretary underscored the importance of research and development, hinting that Local Content thrives where there is a robust research and development guideline to drive development of home-grown technology. He added that “no nation can really develop by being a consumer of other countries technology and intellectual properties.”
He further revealed that NCDMB had focused on research and development in the oil and gas sector with the launch of the R&D Roadmap anchored on eight key pillars and 42 initiatives, and the launch of a $50million Nigerian Content Research & Development Fund to drive basic research, commercialization of research breakthroughs, establishment of Centers of Excellence, and to sponsor University endowments.
He pointed out that access to market is also a critical parameter for developing Local Content because all policies, laws, capacities and research efforts would become stifled if there was no outlet to receive reward for growth and sustenance.
He explained that the Board had enabled access to market by ensuring patronage of goods and services that are developed from established local capacities using the ‘right of first refusal’ principle. He listed other tools such as the Nigerian Content Plan, the Nigerian Content Compliance Certificate, and the Nigerian Content Equipment Certification.
The NCDMB boss noted that the experience garnered by the local businesses, and the capacities developed over the years, have positioned them for the opportunities that would be realized from the African Continental Free Trade Agreement.
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