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NOGICD Act: NCDMB decries high rate of non-compliance by indigenous firms




NOGICD Act: NCDMB decries high rate of non-compliance by indigenous firms


The Nigerian Content Development and Monitoring Board (NCDMB) on Thursday decried  the high rate of non-compliance to the Nigerian Oil and Gas Industry Content (NOGIC) Development  Act by indigenous oil firms.

Mr Simbi Wabote, Executive Secretary of NCDMB, told the News Agency of Nigeria in Lagos that the International Oil Companies (IOCs) were the most compliant with NOGICD Act.

Wabote spoke with NNN on the sideline of a news conference on the forthcoming Nigerian Oil and Gas Opportunity Fair 2019 (NOGOF 2019).

NNN reports that the Nigerian Oil and Gas Industry Content Development Act signed into law on April 22, 2010, is designed to enhance participation of Nigerians and Nigerian companies in the country’s oil and gas industry.

With the promulgation of the Act, the government  clearly established its intention to increase indigenous participation in the industry in terms of human, material and economic resources.

It prescribes minimum thresholds for the use of local services and materials and to promote the transfer of technology and skill and provides that Nigerian independent operators be given first consideration in the award of oil blocks, oil field licenses, oil lifting licenses and all projects contracts (Section 3(1)).

It also notes that there shall be exclusive consideration to Nigerian indigenous service companies which demonstrate ownership of equipment, Nigerian personnel and capacity to execute contracted work (Section 3(2)).

For the purposes of the Act, a Nigerian company is defined as:“A company formed and registered in Nigeria in accordance with the provisions of the Companies and Allied Matters Act with not less than 51 per cent equity shares by Nigerians” (Section 106).

“The IOCs are the most compliant of the NOGICD Act 2010 compared to indigenous players;  if there are people who flout the Act, they are the indigenous players (oil firms) who have benefited from the Act.

“When you compare the compliance level between the IOCs and the indigenous operators, there is clear tendency by the indigenous operators to want to circumvent the provisions of the Act, which to me, is an irony.

“People who benefited from a process are now the ones who are actively working to circumvent the Act; the IOCs’ corporate governance structure is very strict.

“They also go through international scrutiny, so, they try as much as possible to comply,” he said.

On the strategy adopted by the NCDMB to promote compliance, Wabote said the board had put in place a pragmatic approach to the implementation of the Act.

“We have to compare between existing capabilities and capacities; are they available at all or available now to address a particular challenge.

“When do we build capacity up, are we going to build them in a couple of years’ time because, don’t forget that oil and gas is the mainstay of our economy.

“If we don’t manage it properly, we will shut down businesses as well as shut down our future as a country.

“So, we use a pragmatic approach in terms of implementing the Act itself and so far, we have made tremendous progress compared to other sectors, be it construction or Information Technology,’’ he said.

On the difference between Practical Nigeria Conference (PNC) and NOGOF, he said: “PNC focuses on policy thrust and direction of the oil and gas sector while NOGOF remains a platform for sharing potential opportunities in the oil and gas.

“NOGOF is a very distinct platform that we use to manage various stakeholders’ goals; there is no overlap as long as I am concerned,’’ Wabote said.

NNN reports that NOGOF 2019 Fair is expected to take place on April 4 and April 5 in Yenegoa, Bayelsa.

Oil & Gas

Expatriates in oil, gas sector reduced by 80% – NCDMB Executive Secretary



The Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Mr Simbi Wabote, says that the number of expatriates working in the Nigerian oil and gas sector has been reduced by 80 per cent.

Wabote disclosed this on Monday in Abuja at the NCDMB’s third quarter engagement with the media, which focused on the major achievements of the board.

“From 2010 till date, the board has reduced the number of expatriates in the Nigerian petroleum industry by 80 per cent.

“ Nigerians now occupy key positions and deliver critical services in the industry,’’ he said.

The executive secretary said that before the implementation of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, oil welding activities were done outside Nigeria because of lack of world-class welding facilities.

“Today, we are fabricating about 60,000 metric tonnes per annum in Nigeria, which never existed before.

“We have about five world-class welding yards as we speak today. These welding facilities can compete with any of their peers outside the country.

“Today, 95 per cent of service companies in the oil and gas sector, be it onshore and swamp drilling activities, well intervention facilities, well simulation activities and others, are being done by Nigerians.

“These used to be the exclusive preserve of multinational companies like Schlumberger, Haliburton and others; but Nigerians have taken all those responsibilities in the land and swamp areas, especially in the area of drilling,’’ he said.

On the operations of the upstream sector, Wabote noted that in the past, it was the multinationals that were operating all the existing fields.

He, however, said that Nigerians were now operating those fields which accounted for between 25 percent and 30 percent of oil production in the country, aside domestic gas production.

The executive secretary also said that margin fields were currently being produced by Nigerian companies, adding molecules to oil production.

Edited by ‘Wale Sadeeq



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NCDMB targets N9trn investment in oil, gas industry in 2 years




The Nigerian Content Development and Monitoring Board (NCDMB) says the implementation of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010, has brought tremendous transformation in the sector and is expected to attract $25 billion (N9 trillion) investment in the next two years.

Mr Simbi Wabote, the Executive Secretary, NCDMB, made the assertion while addressing newsmen on Thursday in Lagos on the upcoming Nigerian Oil and Gas Opportunity Fair (NOGOF) planned for Yenagoa, Bayelsa from April 2 to April 4.

Wabote said the country’s oil and gas industry was looking positive in spite of the changing dynamics in the global market which led to crude oil pricing uncertainties and the Petroleum Industry Governance Bill (PIGB), hanging in the National Assembly.

He said that since the legislation came into effect, the oil and gas industry had recorded significant Foreign Direct Investment (FDI) from pipe mills and growth in Nigerian-owned marine vessels.

He said the industry recorded 20 billion dollars investment in the last two years, with various projects pursued by International Oil Companies (IOC’s).

The executive secretary disclosed that certain key Final Investment Decisions, (FIDs) would be concluded before the end of the year and would set a new pattern of growth for the industry.

Wabote said the major focus of the Nigerian Content Law was “domiciliation” of value-adding activities, which had identified investment opportunities in fabrication and construction and manufacturing of component parts.

Others, he said, included equipment, spare parts, accessories, drilling fluid, Sub-sea production systems, line pipes, and Personal Protective Equipment (PPE) among others.

On NOGOF 2019, with the theme, Maximising Investments Into The Nigeria Oil and Gas Industry for the Benefit of the Nigerian People”, he said the fair was another milestone achieved by the Board.

He explained it was uncommon to find players in the sector and beyond to come together in the same room to support Nigerian content.

“So it is with great pride that we are able to bring together major players across the Upstream, Midstream and Downstream sectors of the Nigerian Oil and Gas industry as well as government agencies, industry regulators and the National Assembly to showcase opportunities in this industry and present available in-country capacity to all stakeholders in attendance.

“One of the key objectives of the fair, is to bring together governments, national oil companies, investors, corporate players and independents to give them unique space in the country to network, discuss and share knowledge.

“The potential benefits of the fair include, integrating oil producing communities into the oil and gas value chain, fostering institutional collaboration and maximising participation of Nigerians in oil and gas activities.

“It will also link oil and gas sector to other sectors of the economy, maximise utilisation of Nigerian resources, including goods, services and assets and attracting investments to the Nigerian oil and gas sector,” he added.

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Science & Technology

Association urges govt to check capital flight in ICT sector

The President of ICTLOCA, Mr Adewale Akingbade, made this known during the ICT Community Roundtable, organised by ICTLOCA on Wednesday in Lagos.



By Florence Onuegbu
Lagos, Jan. 30, 2019 (NNN) The Association of Information Communication Technology Local Content (ICTLOCA) says there is an urgent need to stop capital flight in the ICT sector.

The President of ICTLOCA, Mr Adewale Akingbade, made this known during the ICT Community Roundtable, organised by ICTLOCA on Wednesday in Lagos.

The theme of the roundtable is: “ICT Local Content: Dissecting Challenges and Proffering Solutions’’.

Represented by the Vice President of ICTLOCA, Busayo Balogun, Akingbade said that curbing capital flight entailed that local content should be promoted.

According to him, all laws and policies put in place to promote local content in ICT must be effectively implemented.

“We must put a stop to capital flight especially in the ICT sector. We are aware that this is an enormous task that cannot be handled by ICTLOCA alone.

“This is the reason we are bringing together stakeholders in the ICT community and industry to deliberate on the challenges stopping us from benefiting from the several laws and policies in place.

“We have brought stakeholders together to proffer solutions that will deepen the patronage of local ICT goods and services in both the private and public sectors.

“With your constant and continuous support, we are sure of achieving the goals and mission of the association, which is to advocate, promote and protect local content in the ICT, in oil and gas and other sectors of the Nigerian economy,’’ he said.

Mrs Edith Udeagu, the Executive Secretary, Nigeria Internet Registration Association (NIRA), said that for the greater part of the last four decades, the Nigerian oil and gas industry had been dominated by major international oil companies.

Udeagu said that the oil and gas sector had large numbers of expatriate workers being deployed to carry out projects in various onshore and offshore locations in the country.

She said that this preponderance of expatriate workers had resulted in paucity of jobs, skills development, capacity building and utilisation of the indigenous workforce.

According to her, in the long run, it will be a lack of sustained national economic development.

“The Federal Government of Nigeria in its effort to ensure the domestication of a significant portion of economic derivatives from the oil and gas industry enacted the Nigerian Oil and Gas Industry Content Development Act (NOGICD) 2010.

“The Act was enacted with the aim of providing for the development of indigenous content in the Nigerian Oil and Gas industry by ensuring that priorities are given to indigenous companies.

“Section 12 of the Act stated categorically that Nigerians are to be given first consideration for the provisions of goods and services in the sector.

“In the second schedule to the Act, the list of ICT goods and services and the percentage that must be provided by Nigerians are well enumerated.

“The NOGICD Act mandated the Nigerian Content Development Monitoring Board (NCDMB) to set up Nigerian Content Consultative Forum in ICT (NCCF-ICT) to provide a platform for information sharing and collaboration in the oil and gas industry,” Udeagu said.

Udeagu said that the significance of the Executive Order was that preference be given to locally-manufactured ICT goods and services.

She said that the order stated categorically that henceforth, 40 per cent of all ICT goods and services consumed by all MDAs must be provided by Nigerian IT firms.

“As at today, can we say we have effectively achieved 40 per cent patronage of local ICT goods and services consumed by MDAs in Nigeria?

“We believe that through this roundtable, members of the ICT community will be effectively engaged to take lasting decisions that will positively disrupt the ICT industry.

“This Roundtable will afford members of the ICT community to put together policies that will deepen patronage of local ICT goods and services and will positively impact on their businesses.

“It will also translate to huge financial and investment opportunities for Nigerians with skills in Information and Communication Technology.

“It will lead to job creation, economic development and growth of the nation at large.

“Coming together to solve the problem is the first step. Collaboration and supporting each other in the industry will bring a major development in the ICT industry,’’ Udeagu said. (NNN)
Edited by Angela Okisor/Adeleye Ajayi


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