TERepublic November Issue 2021
A Special Edition focused on the opportunities in Uganda oil and gas industry, as the country has moved into Commercialisation, Oil and Gas Production.
A Special Edition focused on the opportunities in Uganda oil and gas industry, as the country has moved into Commercialisation, Oil and Gas Production.
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AFRICAN ENERGY STORIES
TA L K I N G P O I N T
Engr. Simbi Kesiye Wabote
Executive Secretary of Nigerian Content
Development and Monitoring Board (NCDMB)
‘Capacity Building,
Funding key
Conditions for Local
Content Growth’
Any nation or sector of the economy
that seeks to implement Local
Content policies successfully must
deploy certain programmes such as Capacity
Building initiatives, Funding and Incentives
and Research and Development, Gap
Analysis, Regulatory Framework and Access
to market. The Executive Secretary of
Nigerian Content Development and
Monitoring Board (NCDMB) Engr. Simbi
Kesiye Wabote identified these conditions
recently in a presentation he delivered to the
6th Ugandan International Oil and Gas
Summit titled “Developing A World Class
Local Content Structure.”
D r a w i n g f r o m t h e s u c c e s s f u l
implementation of the Nigerian Oil and Gas
Industry Content Development (NOGICD)
Act, he underlined that entrenching a
sustainable Local Content practice leads to
development, empowerment, prosperity,
and creation of employment opportunities
for the populace.
Providing details, he explained that an
enabling regulatory framework backed with
the appropriate legislation is fundamental to
effective Local Content practice as it sets the
framework and boundaries for all
practitioners in the sector.
According to him, the second factor is
baseline and periodic gap analyses to
determine gaps that need to be closed in the
areas of skills, facilities and infrastructure.
He added that “the oil and gas industry keeps
evolving and regular reviews and monitoring
of local content goals show where capacities
have been met, current gaps, and where
capacity upgrade is required to guide
deployment of resources and investment
decisions.”
He underscored the need to strike a balance
between aspirational goals and realistic target
setting and to put in place credible action plans
and initiatives to close the gaps and
understanding that all gaps cannot be closed
overnight, hence the need to prioritize areas of
high impact and deploy implementation
measures.
Wabote also stressed the importance of
developing in-country capacities and capabilities,
catalysing local manufacturing and infrastructural
development as well as Human Capacity
Development.
He hinted that implementation of major projects
are important in the development of in-country
capacities and capabilities, while Capacity
Development Initiatives (CDI’s) are important
tools in closing identified capacity gaps. He added
that Project Based trainings are important
element of Human Capacity Development, while
major projects are important to sustain utilization
of established capacities and attract additional
investments for growth.
He pointed out that Funding and Incentives are
important to implementing Local Content
programs, developing infrastructure, attracting
new investments, and keeping existing businesses
afloat where required.
Dwelling on funding, Wabote explained that one
percent of the value of contracts awarded in the
upstream sector of Nigeria’s oil and gas industry is
pooled into the Nigerian Content Development
Fund (NCDF), adding that the NCDMB had
deployed the funds in the launch of the $350
million Nigerian Content Intervention Fund (NCIF)
in partnership with the Bank of Industry and
NEXIM Bank. Other utilizations of the NCDF
include ongoing development of Nigerian Oil and
Gas Parks Scheme as manufacturing hubs,
Construction of the new 17-storey headquarters
building, 1000-seater international conference
center and Partnership with project promoters in
the establishment of modular refineries, LPG
terminals, manufacturing of LPG Cylinders, and
others.
The Executive Secretary underscored the
importance of that Research and Development,
hinting that Local Content thrives where there is
robust R&D guideline to drive development of
home-grown technology. He added that “no nation
can really develop by being a consumer of other
countries technology and intellectual properties.”
He further revealed that NCDMB had focussed on
Research and Development in the oil and gas sector
with the launch of the R&D Roadmap anchored on
eight key pillars and 42 initiatives and launch of a
$50million Nigerian Content Research &
Development Fund to drive basic research,
commercialization of research breakthroughs,
establishment of Centers of Excellence, and to
sponsor University endowments.
He pointed out that Access to Market is also a critical
parameter for developing Local Content because all
policies, laws, capacities and R&D efforts would
become stifled if there was no outlet to receive
reward for growth and sustenance.
He explained that the Board had enabled Access to
Market by ensuring patronage of goods and services
that are developed from established local capacities
using the ‘right of first refusal’ principle. He listed
other tools such as the Nigerian Content Plan, the
Nigerian Content Compliance Certificate, and the
Nigerian Content Equipment Certification.
The NCDMB boss noted that the experience
garnered by the local businesses, and the capacities
developed over the years have positioned them for
the opportunities that would be realized from the
African Continental Free Trade Agreement.
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OIL AND GAS REPUBLIC I SPECIAL EDITION