The Nigerian Content Academy Lecture Series, organized by the Nigerian Content Development and Monitoring Board (NCDMB), began on a thought-provoking note on Friday, offering a panoramic review of local content strategy and implementation in Nigeria’s oil and gas industry.
The event also featured a strong admonition to stakeholders not to trivialize the national local content initiative.
Delivering a lecture titled “Staying the Nigerian Content Course in the Midst of Delivery Challenges,” the pioneer Executive Secretary of the NCDMB, Dr. Ernest Nwapa, dispelled claims that the absence of Final Investment Decisions (FIDs) in the country’s oil and gas sector was due to the Board’s stringent local content enforcement.
According to him, “There are many government policies that are affecting FIDs,” noting that the NCDMB’s local content policies have been wrongly blamed for wider macroeconomic and policy challenges.
Dr. Nwapa observed that the oil and gas sector operates in “an increasingly complex environment shaped by global energy trends, shifting investment patterns, and heightened expectations for local participation and value addition.”
Responding to concerns that Nigeria’s local content framework might be under pressure, he argued that such fears are unfounded and largely promoted by stakeholders resistant to local capacity development.
“Unfounded fears about local content being too restrictive have always come from those who oppose the idea of Nigerians taking charge of their own industry,” he noted.
The former Group General Manager of the Nigerian Content Division at the Nigerian National Petroleum Corporation (2005–2010) also highlighted “unintended ambiguities” in the Presidential Directives issued in February 2024, warning that these ambiguities could weaken the authority of the NCDMB if not promptly addressed.
“There must be institutional adjustment to re-enact the authority in NCDMB directives,” he said, lamenting that “some industry players no longer respect the Board’s authority.”
He cautioned against disregard for NCDMB’s official communications, stating:
“When the Board writes a letter and says this is what stands on Nigerian Content, nobody should question it. If you challenge a letter from the NCDMB, it wouldn’t stand.”
Reflecting on the evolution of local content policy, Dr. Nwapa, a Fellow of the Nigerian Society of Engineers (FNSE), noted that the aspiration for local participation in the oil and gas value chain predates the NOGICD Act 2010.
He cited earlier frameworks such as the Petroleum Act (1969), Joint Venture agreements, the Petroleum Technology Development Fund (PTDF), NAPIMS, and the Cabotage Act (2003) as earlier attempts to localize industry benefits, though none matched the impact of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, 2010.
“Our young engineers and technicians now have platforms to acquire practical skills because projects are happening locally,” he said. “If you look at the number of Nigerians who worked on the Egina FPSO integration project at Tarkwa Bay, Lagos, you can’t underestimate the transformation we’ve achieved.”
On cost concerns, Dr. Nwapa acknowledged that “high costs associated with local content implementation” remain a challenge, but insisted that the solution lies in sustained local participation.
“If we don’t practise local content now, the cost gap will only widen. We must bite the bullet and use activities within our economy to drive costs down to competitive levels,” he urged.
He further recommended that project costs be evaluated “on a project-by-project basis” and handled strategically by the Board in collaboration with industry players.
The pioneer NCDMB boss also urged that the Nigerian Content Academy serve as a knowledge hub and policy think tank, where theories are tested, workshops conducted, and practical recommendations developed for submission to the NCDMB Executive Secretary or even the Presidency.
During the interactive session moderated by Dr. Ama Ikuru, Director of the Nigerian Content Academy, participants raised pertinent questions about industry practices. Mr. Simeon Ogari, Nigerian Content Manager, SEPLAT Energy Limited, queried the existence of both the Nigerian Oil and Gas Industry Content Joint Qualification System (NOGIC JQS) and a parallel NIPEX JQS.
In response, Dr. Nwapa clarified that both systems have coexisted for some time without disrupting industry operations, adding that harmonization could be achieved through dialogue. Other contributors included Mr. Isoboye Amachree of Oando PLC, Mr. Kamselem Mohammed, and Barr. Naboth Onyesoh, Director, Legal Services, NCDMB.
The Nigerian Content Academy Lecture Series is held weekly to deepen understanding of local content trends and challenges while empowering Nigerians to maximize economic opportunities within the oil and gas sector.
“Our young engineers and technicians now have platforms to acquire practical skills because projects are happening locally,” he said. “If you look at the number of Nigerians who worked on the Egina FPSO integration project at Tarkwa Bay, Lagos, you can’t underestimate the transformation we’ve achieved.”
On cost concerns, Dr. Nwapa acknowledged that “high costs associated with local content implementation” remain a challenge, but insisted that the solution lies in sustained local participation.
“If we don’t practise local content now, the cost gap will only widen. We must bite the bullet and use activities within our economy to drive costs down to competitive levels,” he urged.
He further recommended that project costs be evaluated “on a project-by-project basis” and handled strategically by the Board in collaboration with industry players.
The pioneer NCDMB boss also urged that the Nigerian Content Academy serve as a knowledge hub and policy think tank, where theories are tested, workshops conducted, and practical recommendations developed for submission to the NCDMB Executive Secretary or even the Presidency.
During the interactive session moderated by Dr. Ama Ikuru, Director of the Nigerian Content Academy, participants raised pertinent questions about industry practices. Mr. Simeon Ogari, Nigerian Content Manager, SEPLAT Energy Limited, queried the existence of both the Nigerian Oil and Gas Industry Content Joint Qualification System (NOGIC JQS) and a parallel NIPEX JQS.
In response, Dr. Nwapa clarified that both systems have coexisted for some time without disrupting industry operations, adding that harmonization could be achieved through dialogue. Other contributors included Mr. Isoboye Amachree of Oando PLC, Mr. Kamselem Mohammed, and Barr. Naboth Onyesoh, Director, Legal Services, NCDMB.
The Nigerian Content Academy Lecture Series is held weekly to deepen understanding of local content trends and challenges while empowering Nigerians to maximize economic opportunities within the oil and gas sector.
No comments:
Post a Comment