NCDMB Emphasizes That Local Content Implementation Is Vital For Africa’s Economic Prosperity....KINDLY READ THE FULL STORY HERE▶

The Executive Secretary (ES) of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Kesiye Wabote, has emphasized the pivotal role of local content development in powering the economic growth of African nations. Speaking at the 2023 Africa Energy Week in Cape Town, South Africa, Wabote stressed that African countries must cultivate local capabilities to process, utilize, and export their resources if they aim to achieve economic prosperity.

Wabote expressed concern that many African nations lack the essential local capacities in critical areas of the oil and gas industry, such as Engineering, Procurement, Construction, Fabrication, Installation, Commissioning, and Operation. This deficiency results in missed opportunities for job creation, revenue generation, skill acquisition, and overall national development.

Furthermore, these key sectors consume a significant portion of the oil and gas industry’s expenditure. Thus, it is imperative for oil-producing nations to develop local capabilities to retain these financial outlays within their own borders.

Wabote offered guidance on strategies to enhance local content capacity in African countries. He stressed the importance of making local content a national priority and supporting it with appropriate legislation or legal frameworks in each respective jurisdiction. This approach would clearly communicate that local procurement, fabrication, and manufacturing are national imperatives, garnering support from institutions, businesses, decision-makers, investors, and citizens.

Drawing from Nigeria’s experience, Wabote highlighted the significance of establishing policies and legal frameworks to deepen local content practices. He mentioned the Nigerian Oil and Gas Industry Content Development (NOGICD) Act enacted in 2010, which eliminated the possibility of companies merely complying with local content requirements on a best-effort basis.

He also identified other essential tools for enhancing local content capacity, including collecting factual data on current in-country capacities, conducting gap analyses, and factoring local peculiarities into enhancement programs. Wabote stressed that local content is not a one-size-fits-all concept.

Additionally, he emphasized the need for structured capacity building interventions to bridge identified gaps, as well as funding and incentives to implement local content programs, develop infrastructure, attract new investments, and sustain existing businesses.

Wabote underlined the importance of patronizing in-country capacities and capabilities, pointing out that policies and individuals would be ineffective without engagement and rewards for sustainability and growth. The NCDMB ensures the patronage of local goods and services through principles like the “right of first refusal” contained in the Nigerian Content Act, along with project certification and compliance monitoring tools.

Providing an update on the Board’s activities, Wabote revealed that NCDMB initiated a 10-year Strategic Roadmap in 2018 with the goal of achieving 70 percent Nigerian Content in the Nigerian Oil and Gas industry by 2027. Under five strategic pillars and four vision enablers, various initiatives were launched. As of the end of 2022, halfway into the 10-year journey, they had already achieved a 54 percent Nigerian Content level, surpassing the 42 percent target.