The Nigerian Content Development and Monitoring Board (NCDMB) said on Thursday that the implementation of the Nigerian Oil and Gas Industry Content Development (NOGIC) Act was geared to bring Nigerian jobs back home.
The Executive Secretary of the NCDMB, Mr Ernest Nwapa stated this at the ongoing 2012 Nigerian Oil and Gas (NOG) conference in Abuja.
He said the board would ensure that all technology required to develop the local content was deployed to the country to create greater opportunities for Nigerians.
Nwapa said the emphasis of the Federal Government with the implementation of the Act was not only to retain the bulk of the annual oil and gas industry spend in the country, but ultimately to create employment for millions of Nigerians on the back of oil and gas industry operations.
He noted that most countries around the world were currently working towards bringing back jobs for their nationals in the wake of the global economic crisis.
The NCDMB executive secretary said that this agenda of the Federal Government should be supported by all stakeholders, conceding that keeping the cost of production reasonable and meeting work schedules were critical to national revenue.
He said that given Nigeria’s population of over 150 million, the oil and gas industry, which is the main stay of the economy, needed to pay special attention to job creation.
Nwapa explained that NNPC and the operating Joint Ventures could not employ more than 25,000 persons, adding that several thousands of Nigerians would be employed if operating companies put jobs in the yards of local service companies and encouraged their traditional service providers to build facilities in Nigeria to execute their contracts locally.
Nwapa regretted that the preference for importing almost all the goods and services used by the industry from abroad was steadily eliminating opportunities to develop human and infrastructural capacity, consequently impoverishing our people and stultifying national economic development.
“Each major offshore production facility awarded to be fabricated in the traditional Asian fabrication yard translates to the export of over $1 billion dollar capital from the Nigerian economy.
“About 5,000 Nigerian jobs in the two-year engineering and fabrication period and opportunity to train several thousand other Nigerians within same time frame.
“Such decisions also result in lost opportunity to upgrade existing yards and build new ones, crippled opportunity to attract investment for facilities and lost opportunities to grow partnerships between local and foreign companies,’’ he stressed.
Nwapa demanded that such practices must stop, adding that compliance with provisions of the Act called for a drastic change in the way the industry has been run for decades to achieve government’s aspirations.
He maintained that foreign and local investors would not be encouraged to establish facilities in Nigeria with a view to bridging capacity gaps until they were convinced that existing facilities were being patronised by the industry.
He said the board would ensure that all components and equipment used in the oil and gas industry were manufactured in Nigeria, stressing that it was the only way to develop the country’s local content.
The Executive Secretary said the board would also ensure that the Original Equipment Manufacturer (OEM) products or components met the Industry guideline mandates, while all OEMs would domicile the manufacture of equipment components, parts, packages and systems in Nigeria.
“We have issued the Nigerian Content Equipment Certificate (NCEC) to companies that have met the requirements.
“While about 52 applications are being processed, a guideline has been issued to the industry making NCEC a requirement in tenders.’’
Nwapa said that over 6,000 candidates were captured on Joint Qualification System (JQS) Platform while another 500 candidates were attached to O & G Projects.
He also hinted that the board has embarked on the Nigerian Oil and Gas Employment and Training Tracking System (NOGETTS).
According to him, the NCDMB model implies that equipment imported should stand at five per cent while Nigerian owned and done in Nigeria will be 100 per cent.
In another development, the Executive Secretary, Petroleum Technology Development Fund (PTDF) Mr Muttaqha Darma, said the agency has also improved tremendously on capacity development.
“We anticipated training about 10,000 graduates in the next five years but presently we have produced up to 6,000 which indicates gross improvement.
“Our objective is to train Nigerians to qualify as graduates, professionals, technicians and craftsmen in the field of engineering, geology, science and management in the oil and gas industry in Nigeria or abroad.
Darma said that under the human capacity development programme, the fund has established ICT projects in all 102 unity schools in Nigeria and dozens of tertiary institutions.
“ Our mission is to serve not only as a vessel for the development of indigenous manpower and technology transfer and acquisition in the petroleum industry to make Nigeria a human resource centre for the West African sub-region.’’
DPR Assures Fuel Availability During Sallah
The Department of Petroleum Resources (DPR) has assured Nigerians of petroleum products availability during the Sallah holidays.
Head, Public Affairs, DPR, Mr Paul Osu, gave the assurance in a statement issued last Friday in Lagos.
The Tide source reports that the Federal Government has declared July 20 and 21 as public holidays to mark the celebration.
Osu said there was product sufficiency nationwide and advised marketers against hoarding and creating artificial scarcity under any guise.
He said the DPR would intensify its monitoring and surveillance of petroleum products outlets to ensure compliance with quality, quantity, integrity and safety of operations in line with its regulatory mandate.
Osu advised consumers to report any infraction such as under dispensing of products to any DPR office nationwide.
He also reiterated the DPR’s commitment to safety and advised consumers to observe all necessary safety protocols in the handling of petroleum products.
Osu said the regulatory agency would continue to initiate appropriate initiatives to enable business and create opportunities for investors and stakeholders in the oil and gas industry in Nigeria.
Reps Pass PIB, Adopt 3% For Host Communities
Following the report of the conference Committee on the Petroleum Industry Bill (PIB), the House of Representatives last Friday, in Abuja passed the bill, allowing three per cent to host communities.
The three per cent is however against 10 per cent demanded by the host communities and also the initial five per cent agreed to by the House of Reps.
The PIB is an Executive bill, which sought to reform the Oil and Gas sector and ensure its governance met with best global standards.
It was presented by the Chairman of House Committee on PIB, Rep. Mohammed Monguno (APC-Borno) on July 1.
The bill was scheduled for third reading and final passage by the House following the adoption of the report by the House, which was eventually passed on July 16.
The Tide source reports that the main opposition, the Peoples Democratic Party (PDP) could not participate in the adoption following their walk out from the plenary.
It would be recalled that the host communities had earlier demanded for 10 per cent, the Chairman of the House Committee on PIB however accepted five per cent in its report.
The conference Committee of the House of Reps and the Senate jointly agreed to give three per cent to the host communities via harmonisation.
Sylva Affirms Oil, OPEC’s Place In Future Energy Mix
Minister of State for Petroleum Resources, Timipre Sylva, has said oil will not lose its place in the future energy mix, adding that OPEC itself would continue to be a force to be reckoned with in the sector.
He made the statement while announcing the launch of a book, “Nigeria and OPEC : 50 years of Partnership” by the federal government in celebration of the country’s golden jubilee anniversary as member of the Organisation of Petroleum Exporting Countries.
“Oil will continue to be an important component of the energy mix into the foreseeable future. It will continue to be needed to power the global economic growth in order to eradicate poverty, which is still prevalent worldwide.
“OPEC’s role of stabilising the oil market for the benefits of all stakeholders will continue to be required in the years ahead,” Syvla added.
Nigeria was admitted into OPEC as its 11th member country on July 12, 1971, at the 24th meeting of the OPEC held in Vienna, Austria.
“OPEC at the time was in its 11th year of existence having being established on September 14 1960, in Baghdad, Iraq, by five founding member countries Islamic Republic of Iran, Iraq, Kuwait, Saudi Arabia and Venezuela.
“This makes July 12, 2021, the golden anniversary of a successful partnership between Nigeria and OPEC.
“As part of this celebration, it is my pleasure to launch the book ‘Nigeria and OPEC: 50 years of Partnership, 1971-2021,” he said.
He said the book was an updated version of the one published in 2006 to mark the 35th anniversary.
According to him, it is a very important document that can adequately inform and inspire the future generation.
“The book gave great insights into our people, culture, diversity and relationship with OPEC over these 50 eventful years
“It also gives an insight into the landmark developments in the oil and gas sectors as well as their envisaged place in Nigeria’s energy transition commitments,’’ he said
The minister said that Nigeria as a key player in the industry would continue to lend full support to the efforts of the organisation to balance the oil market for the benefit of all.
He said Nigeria’s membership of OPEC was very important and had helped in strengthening shared values and protecting the group’s interest.
Commenting on the role of Nigeria in OPEC, he said that it had contributed enormously to the survival of OPEC during turbulent times by lending full support to the efforts of the organisation to balance and stabilise the oil market.
He quoted the OPEC Secretary General, Mohammad Barkindo, as saying that the organisation had benefited from the wisdom and expertise of dedicated public servants from Nigeria who had engaged with the organisation in different period.
“Nigeria has played a major role in driving the organisation focus on cooperation , goodwill, a sense of belonging and unity and in working toward achieving oil market stability,’’ he quoted Barkindo as saying.
Sylva further said that over the past 50 years Nigeria had produced six presidents of the OPEC conference.
He named the presidents to include Shettima Ali Monguno (1972/73), Malam Yahaya Dikko (1982/83), Dr Rilwanu Lukman (1986- 89, 2002), Prof. Jibril Aminu (1991), Dr Edmund Daukoru (2006) and Dr Ibe Kachikwu (2015).
“They have in total, presided over 26 OPEC ministerial conferences held in several countries
“It is appropriate and important to mention that our president Muhammadu Buhari also served as head of Nigeria delegation to OPEC from 1976 to 1978 and has continued to engage with the organisation, lending his unflinching support to OPEC laudable endavours.
“It is on record that he played a crucial role in negotiating the Declaration of Cooperation (DoC) between OPEC and participating non-OPEC oil producing countries which has continued to be backbone for the survival of the oil industry during the ongoing Covid-19 pandemic,’’ he said .
The minister added that Nigeria had also provided four OPEC Secretary Generals namely Chief MO Feyide 1975/1976, Dr Rilwanu Lukman (1986/88), Dr Edmund Daukoru (2006) and the incumbent Mohammad Barkindo.
“This amounts to a total of 15 years of managing the affairs of the secretariat on behalf of the members. Nigeria , has therefore played a vital role in the evolution of the secretariat and the development of the organisation,’’ he said
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