Operators in the Nigerian oil and gas industry have increased compliance to local content directive from less than 3 per cent in 2010 when the law to increase in-country capacity in the energy sector was enacted to over 30 per cent today.
This assertion was made by Simbi Kesiye Wabote, executive secretary of the Nigerian Content Development and Monitoring Board, NCDMB during a facility tour of Niger Dock facilities in Snake Island, Free Trade Zone Lagos on December 1.
“Before even 2010, the local content attainment was about 3 per cent because the country focused more on the revenue they get from selling oil and the tax they get out of that revenue, but with the advent of local content, we felt all the money that was left on the table, we needed to retain some of it in-country hence the push to carry out most of those activities that hitherto were exported out of the country to happen here.”
He attributed the current increased drive for project design in-country to enforcement of local content law. From front-end to detailed engineering design, he said operators have brought back design to Nigeria.
This has led to the establishment of a lot of design companies to deliver value to the sector and even the various international oil companies have set up their own design team with which they provided those services.
“In terms of service terms a lot has improved and today we have moved the needle to about 30 per cent, we are not there yet,” he admitted.
“Niger Dock is an example of some of the local content policies we have adopted in the past before I’m sure none of you visited this yard, I was speaking to the chairman of the group, he told me that before they came here, they had twenty drivers and two cars, and those two cars were not working but today we went round and see what we have seen the impact of local content can be seen on these facility.”
BusinessDay observation around the facility showed that but for a sprinkling of expatriates, NigerDock has large number of Nigerians engaged in highly skilled activities. The companies training centers were welders and fabrication skill are trained are entirely peopled by Nigerians both the trainers and trainees.
The management team from the NCDMB along with representatives of most of the IOCs and journalists were conducted round the Niger Dock facility. The company, a member of Jagal Energy, an indigenous energy services company displayed their capabilities in handling complex oil and gas projects, shipbuilding and repairs, offshore logistics, associated base support and keen adhearance to safety standards.
Anwar Jarmakani, Chairman, Jagal Group and Chris Bennett, group managing director led the visitors the company’s facilities including its 25,000DWT graving dock, 3,500DWT floating dock, multiple quayside facilities and weather proof multi-purpose workshops.
Wabote said local content development is not a sprint, but a marathon, and will require skills and investments to achieve greater success.
