By Emmanuel Nduka
The Nigerian Content Development and Monitoring Board (NCDMB) has assured that the creation of the Nigerian Oil and Gas Park Scheme will help mitigate exorbitant start-up costs for local manufactures in Nigeria’s Oil and Gas sector, in setting up manufacturing plants.
This assurance was given by the Executive Secretary of the NCDMB, Engr Simbi Wabote who was represented by Mr Abdulmalik Halilu, General Manager, Research, Statistics and Development, NCDMB, on Friday while he led other African oil players on a tour of the Project Site in Emeyal-1, Ogbia, Bayelsa State.
The ES who led the delegation on the heels of Thursday’s African Local Content Roundtable held in Yenagoa, harped that in implementing local content, the supply chained must be considered, while government on its part, must strive to provide necessary intervention for local manufacturers.
“When you look at the Oil and Gas sector, especially production and exploration activities, the procurement of manufactured materials account for over 50 percent of typical engineering procurement and construction contract. We needed to create an environment where manufacturing activities can actually happen if we can get maximum in-country value addition.
“So we initiated the Equipment Component Manufacturing Initiative which basically made it mandatory for every equipment supplier in the industry to assemble and produce certain components of that equipment in Nigeria,” he added.
He noted that feedback gotten from in-house industry players was that “the cost of setting up a manufacturing plant was exorbitant, some came back to say it costs almost $1million just to acquire a land, not to talk of the equipment and commissioning. We realized that start-up cost was an issue.
“If our local manufacturers are bidding with their peers in UK and US, you find out that their price is almost three times higher. That is why we came up with the Nigerian Oil and Gas Park Scheme. To provide an environment that would be procured by the Board, built by the Board, and all the manufacturers need to do is lease the units on just the sizes that they need.”
Appreciating the initiative and spate of work at the site, Secretary-General of the African Petroleum Producers Organization (APPO) Omar Farouk Ibrahim, urged other African countries to learn from Nigeria’s experience in creating the Oil and Gas Park.
“It is something that each APPO member countries should have. Beyond this, we are also looking at having these things at regional level so that big projects that a country on its own cannot take, a number of countries can come together and assist.
“We are very impressed with the park. It is very important and strategic to the continued existence of the Oil and Gas sector in Africa, especially in the light of energy transition,” he said.
Mr Omar further noted that the world is fast moving away from fossil fuel to renewable energy, adding that technology, finance and human capital will gradually fizzle out from those country that depends on them.
“What that means is that African countries that are not yet able to produce, fabricate and do not have the technology to continue with this industry, are going to be in deep trouble,” the APPO boss added.
The park according to the NCDMB, would be used for many activities including manufacturing, processing, training of local manufacturers.
Meanwhile, Engr Wabote, had earlier in February while inspecting the project, revealed that it would be completed in the 4th quarter of 2022.
