Local Content Act: NCDMB Retains $6.4bn Of Industry Annual Spend
Notwithstanding the challenges in the global oil and gas industry, the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Simbi Wabote, has stated that the agency has retained the $6.4 billion of yearly spend as a result of Local Content Act implementation.
The value represents 32 per cent value retention of the $20 billion yearly spend in the oil and gas industry just as Wabote said efforts are on-going to achieve 70 per cent.
He added that the Board has also advanced the implementation of the 10-year strategic roadmap, held the checkpoint review session for the roadmap, continued the construction of oil and gas industrial parks, secured the Final Investment Decision (FID) and award of contracts for the NLNG Train 7.
Wabote, while speaking at the Nigerian Content Capacity Building workshop organised for media stakeholders in Port-Harcourt and Lagos, noted that only five per cent was being retained when the Nigerian Content Act was enacted in 2010 and that the percentage grew to 26 per cent in 2017.
He reiterated that the vision of the Nigerian Content 10-Year Strategic Roadmap is to achieve 70 per cent value retention by 2020, stressing that other targets are creating 300,000 jobs, retaining $14bn out of $20bn yearly industry spend, building shipyards and manufacturing facilities.
In his presentation, General Manager, Corporate Communications and Zonal Coordination Division, NCDMB, Dr. Ginah Ginah, hinted that the Board and operating oil companies had jointly deployed the Community Content Guideline (CCG), which provides a framework for engaging youths of host communities in employment, training and contracts.
The CCG also provides for the establishment of critical infrastructure to stimulate development, attract new businesses to host communities and sustain the growth of host community entrepreneurs through funding and policy support.
One of the key provisions of the CCG is that 100 per cent of unskilled job roles should be reserved exclusively for indigenes of the host community of projects, while 50 per cent of semi-skilled roles should be exclusively reserved for indigenes of host communities. Similarly, at least 10 per cent of skilled roles are to be reserved for the indigenes of host communities.
General Manager, Strategy and Transformational Projects, NCDMB, Abayomi Bamidele made a presentation at the workshop on the mid-term review of the Board’s 10-Year Strategic Roadmap.
Represented by the Supervisor, Strategy and Transformational Division, NCDMB, Olabisi Okunola, he stated that the mid-term review indicated that it was imperative to grow Nigerian Content attainment by 11 per cent year on year to achieve the targets set in the Nigerian Content 10-Year Strategic Roadmap.
He said the Board had initiated some steps to accelerate the attainment.
Some of them, according to him, included the extension of coverage to other segments of the oil and gas industry such as catalysing modular refineries and gas value chains. Another step is accelerating sectoral linkages with key input industries like the steel sector and securing additional finance for key industry needs.
Earlier, the Manager, Corporate Communications, NCDMB, Naboth Onyesoh, underscored the essence of the workshop, saying it was conceived to deepen the cordial relationship the Board had built with the media over the past 10 years.
He also hinted that the workshop was in furtherance of the Nigerian Content 10-Year Strategic Roadmap, particularly, the enabler, which focuses on collaboration and stakeholder engagement.