The federal government has saved N3.5 trillion ($8.5 billion) by achieving 42 percent local content in oil and gas projects worth $20.4 billion.
Engr. Simbi Wabote, Executive Secretary of the Nigeria Content Development and Monitoring Board (NCDMB), stated this at the 10th edition of the Practical Nigerian Content (PNC) event held at the NCDMB headquarters in Yenagoa, Bayelsa.
Wabote, speaking on the topic “Driving Nigerian Content in the New Dawn of the Petroleum Industry Act,” said Nigeria is on track to reach 70% manpower content in the oil and gas sector by 2027.
Read Also: Insecurity: Gunmen Kill four oil workers and kidnap six others in Bayelsa
He also provided an assessment of Nigerian content performance in the areas of Engineering, Procurement, Fabrication, Project Management, and Services for the next ten years.
According to the ES, projects worth $20.4 billion were completed between 2016 and 2020, with Nigerian material accounting for 42 percent of the total.
He listed the spending categories as follows: $8.07 billion on Fabrication, accounting for 39% of total cost; $4.74 billion on Engineering services, accounting for 23% of total spend; and $5.67 billion on Procurement of manufactured materials, accounting for 28% of total spend.
According to him, the low spends were $1.18 billion on services, which accounted for 6% of total spending, and $746 million on project management, which accounted for 4% of total spending.
“Based on the aforesaid statistics, the aggregated level of Nigerian Content across the five categories has been determined to be 42 percent,” he stated.
“It is important to highlight, however, that while NC performance in Engineering as one of the main three spend areas is above the 70% target, we must focus on the other two areas, Fabrication and Materials Procurement, if we are to meet the 70% target by 2027.”
That is why, through our commercial venture partnerships and oil and gas industrial parks, we want to ensure that the established in-country fabrication yards are used for sanctioned projects like NLNG Train-7, as well as drive local manufacturing of goods like chemicals, hardware, spares, accessories, and other consumables.”
Read Also: Reviving palm oil exportation by solving the derivation controversy
“We are set to fully exploit the opportunity presented to gain maximum advantage for our country,” Wabote said, adding that the implementation of the PIA (2021) has further cemented NCDMB’s role in the oil and gas business.
Timipre Sylva, Minister of State for Petroleum Resources, urged the board to keep focused on implementing the Nigerian Content 10-Year Strategic Roadmap, which aims to increase Nigerian Content to 70% by 2027.