The implementation of the Nigerian Content Act in the past 30
months has deepened the Nigerian Oil and Gas local supply chain and increased
industry manhours performed by Nigerians by over 350 per cent resulting in over
30,000 direct productive jobs, the Minister of Petroleum Resources, Mrs.
Diezani Alison-Madueke has said.
months has deepened the Nigerian Oil and Gas local supply chain and increased
industry manhours performed by Nigerians by over 350 per cent resulting in over
30,000 direct productive jobs, the Minister of Petroleum Resources, Mrs.
Diezani Alison-Madueke has said.
Speaking at a meeting of the Governing Council of the Nigerian
Content Development & Monitoring Board held in Abuja last week, the
Minister who doubles as the Chairman of the Council explained “that just by
insisting on using Nigerians in the industry, we have deepened the local supply
chain”
The jobs were generated in engineering,
fabrication, exploration and production, marine transportation and logistics
sectors, which had been developed to become more robust.
fabrication, exploration and production, marine transportation and logistics
sectors, which had been developed to become more robust.
She expressed optimism that the job growth trajectory will not
only be sustained but also drive multipliers across industries following the
integration of youths training into the implementation process.
only be sustained but also drive multipliers across industries following the
integration of youths training into the implementation process.
“I have no doubt that more jobs will be created in 2013 and we
shall achieve greater localization of industry services, manufacturing and
fabrication in 2013,” she added.
shall achieve greater localization of industry services, manufacturing and
fabrication in 2013,” she added.
According to Alison-Madueke, Nigerian Content implementation has
increased the level of participation of Nigerians in oil and gas contracts to
87 per cent of total industry contracts, describing this is a first step
towards domiciliation of spend and local value addition.
increased the level of participation of Nigerians in oil and gas contracts to
87 per cent of total industry contracts, describing this is a first step
towards domiciliation of spend and local value addition.
Commenting further on the success
recorded so far, the Minister noted that “The Board has to a large extent
achieved consensus in most aspects of Nigerian Content implementation to the
extent that there has been no major dispute amongst stakeholders on
interpretation of provisions of the Nigerian Content Law.
recorded so far, the Minister noted that “The Board has to a large extent
achieved consensus in most aspects of Nigerian Content implementation to the
extent that there has been no major dispute amongst stakeholders on
interpretation of provisions of the Nigerian Content Law.
“Stakeholders are also responding
positively to the need to do things differently in the industry, for the
benefit of all. This clearly demonstrates that we have been carrying the
industry along in the implementation of the Act.”
positively to the need to do things differently in the industry, for the
benefit of all. This clearly demonstrates that we have been carrying the
industry along in the implementation of the Act.”
Alison-Madueke also assured that the
Federal Government will continue to support the Board and its numerous local
value addition initiatives, aimed at deepening indigenous participation in the
industry.
Federal Government will continue to support the Board and its numerous local
value addition initiatives, aimed at deepening indigenous participation in the
industry.
Dwelling on the Petroleum Industry Bill
presently before the National Assembly, the Minister noted that that the
provisions of the Nigerian Oil and Gas Industry Content Development Act were
safeguarded in the PIB, in a bid to sustain the momentum that has been achieved
in Nigerian Content.
presently before the National Assembly, the Minister noted that that the
provisions of the Nigerian Oil and Gas Industry Content Development Act were
safeguarded in the PIB, in a bid to sustain the momentum that has been achieved
in Nigerian Content.
“The PIB is now in the National
Assembly and should provide the needed impetus for additional investments in
the industry. This should be a major benefit for the capacity we are building
in the local industry,” she said.
Assembly and should provide the needed impetus for additional investments in
the industry. This should be a major benefit for the capacity we are building
in the local industry,” she said.
In his remarks, the Executive Secretary of Nigerian Content
Development and Monitoring Board, Engr. Ernest Nwapa explained that the
Nigerian Content implementation model is focussed on growing and utilizing
in-country capacity, while operators are made to consider long term value
addition.
Development and Monitoring Board, Engr. Ernest Nwapa explained that the
Nigerian Content implementation model is focussed on growing and utilizing
in-country capacity, while operators are made to consider long term value
addition.
Under this model, government might get
slightly lower revenue but this will be compensated with a higher in-country
value and greater attention to life cycle of industry operations.
slightly lower revenue but this will be compensated with a higher in-country
value and greater attention to life cycle of industry operations.
While acknowledging progress on the
quantum of contracts awarded to Nigerians, the Executive Secretary stressed
that real Nigerian Content can only grow if Nigerian companies that win
contracts procure items from Nigeria and execute the jobs in-country.
quantum of contracts awarded to Nigerians, the Executive Secretary stressed
that real Nigerian Content can only grow if Nigerian companies that win
contracts procure items from Nigeria and execute the jobs in-country.
To grow real Nigerian Content, Nwapa
said the industry must focus more on manufacturing, bringing back the bulk of
fabrication jobs that are done in foreign countries and ensuring that pipes,
valves, fittings and related equipment are procured from Nigeria.
said the industry must focus more on manufacturing, bringing back the bulk of
fabrication jobs that are done in foreign countries and ensuring that pipes,
valves, fittings and related equipment are procured from Nigeria.
He stated that appreciable progress had
been recorded in fabrication and engineering, noting that similar growth must
be achieved in the manufacturing sector as most of the valves, pumps, oil and
gas equipment are still being imported.
been recorded in fabrication and engineering, noting that similar growth must
be achieved in the manufacturing sector as most of the valves, pumps, oil and
gas equipment are still being imported.
Nwapa further noted, “We have started
creating the platform to ensure that components of these equipment can be done
here, even if we cannot manufacture the whole equipment here.
creating the platform to ensure that components of these equipment can be done
here, even if we cannot manufacture the whole equipment here.
“With the support of the minister, we have also issued guidelines
that require any new project to create some legacy facilities. We have been
able to get commitments from international operating companies on FPSO
integration facilities, dockyards, umbilicals manufacturing and fabrication
yards.”
that require any new project to create some legacy facilities. We have been
able to get commitments from international operating companies on FPSO
integration facilities, dockyards, umbilicals manufacturing and fabrication
yards.”
To grow participation of the oil producing communities, the Board
will organise Original Equipment Manufacturers/Small and Medium Enterprises
fairs in the oil producing states which will result in the selection of serious
local SMEs for integration into the equipment components manufacturing schemes.
will organise Original Equipment Manufacturers/Small and Medium Enterprises
fairs in the oil producing states which will result in the selection of serious
local SMEs for integration into the equipment components manufacturing schemes.
The Board will also collaborate with the state governments to
create industrial clusters to accommodate such enterprises, Nwapa explained.
create industrial clusters to accommodate such enterprises, Nwapa explained.
