By John Ikani
The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Wabote has asserted that local content is indispensable in driving sustainability and cost-effectiveness in African industries.
Engr. Wabote made the assertion on Monday while speaking during a panel session at the opening ceremony of the 2023 Africa CEO Forum’s Annual Summit held in Abidjan, Côte d’Ivoire.
Drawing from his experience in the oil and gas industry, the NCDMB boss explained that “Local content can be cheaper as well as more effective and sustainable than using foreign expertise.”
While noting that the use of foreign expertise in the oil and gas industry can be expensive, as it requires the payment of high salaries and benefits, Engr. Wabote added that “It can be difficult to find foreign experts with the right skills and experience, as many of them are reluctant to work in Africa due to security and economic concerns.”
Dispelling fears about the capital-intensive nature of local content, Engr. Wabote presented a compelling case, stating that local content gradually becomes cheaper and more sustainable in the long run, ultimately benefiting both the companies and the host nations.
He went on to cite an example of the unrest that used to ravage Nigeria’s Niger Delta region, pointing out that despite the departure of international service providers from the country, oil production did not come to a halt.
“This was possible due to the capacity-building efforts that enabled the local workforce to manage production effectively. The recent COVID-19 pandemic also served as a testament to this, as Nigeria, with a significant reliance on local expertise and resources, managed to maintain uninterrupted oil production,” he said.
The local content chieftain went on to stress the need for businesses operating in Africa to prioritize long-term sustainability over short-term gains, as demonstrated by Shell’s 60-year presence in Nigeria.
Citing an example out of prevailing global challenges, Engr. Wabote said: “Let’s talk about the current challenge of gas supply in Europe. If the likes of Shell, and Total had set up presence in African countries with a short-term mindset, today, they would have all been out. By nurturing long-term presence, these companies now play a vital role in supplying the necessary gas to sustain industrialized nations.”
Furthermore, the Executive Secretary stressed that local content required time and capital to thrive.
He highlighted the involvement of local content stakeholders in financing local businesses, including a collaboration with the Bank of Industry that resulted in a $300 million financing scheme.
By creating a specialized desk manned by individuals well-versed in the local content sector, the financing initiative has been hailed as one of the country’s most successful schemes.
It is worthwhile to note that the 2023 Africa CEO Forum’s Annual Summit brought together over 1,000 CEOs, government officials, investors, and thought leaders from across Africa and the world to discuss the most pressing issues facing the continent.
The summit themed “Navigating the Crises – From 300 to 3000: How to deliver the next generation of African Champions” was organized by Jeune Afrique Media Group, a leading pan-African media company.
