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Nigerian Content And Oil Sector Revolution

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9 years ago

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It is no longer news that the price of oil in the international market is on a progressive decline.
The reason for this, of course, is not far-fetched; the world is rising above dependency on fossil oil as major source of energy and as nature abhors vacuum, global attention is shifted to alternative source of energy to avoid been caught up in the imminent revolution.
However, Nigeria as an oil producing country does not only depend on the exportation of oil as a major source of revenue but  imports refined petroleum products for domestic consumption.
This ugly development trend places Nigeria in a state of sordid reality in the global paradi shift.
In line with this global revolution in the oil and gas industry, pundits have continued to raise questions on its implications for the development of the Nigerian oil sector; will Nigeria key into the revolution  having remained the only country in the world that will eventually be left behind, when fossil oil cease to be the major energy source?
Executive Secretary of the Nigeria Content Development Monitoring Board, Engr. SimbiWabote, however provided answers to this niggling question, while addressing a session of experts in the oil and gas sector, at a content development exhibition workshop organised in Port Harcourt, recently.
The workshop which was jointly organised by the Port Harcourt Branch of the Nigeria Society of Engineers, and the Nigeria Content Development Monitoring Board was according to the executive secretary a platform to brainstorm on the way forward for the Nigeria oil and gas industry and the wider economy.
Engr. Wabote, noted that the dismal level of Nigeria to the tune of a paltry five per cent made Nigeria to focus mainly on oil revenue in the past, resulting in foreign based procurement and estimated capital flight of about $380bn in 50 years, with over two million jobs specifically lost in the Niger Delta region.
According major consequence according to him was the narrative and global portrayal of Nigeria as a consuming economy.
However he pointed out that “the issuance of the 16 and 23 directives in 2005 and 2006 respectively, to drive local content raised the local content consciousness in the oil and gas industry but the imperative was centred on best endeavour basis thereby stunting the anticipated prospect of development”.
The directives subsequently received legal backing for an all-encompassing framework of Nigeria content development, when the Nigeria oil and gas industry content development act, was enacted in 2010.
Under the act, the Nigeria content development and monitoring Board’s mandate was broadly classified into two key areas; to develop capacity of local supply chain for effective and efficient service delivery to the oil and gas industry, without compromising standards, and to implement and enforce the provisions of the Nigeria Oil and Gas Content Development (NOGICD) Act 2010.
In course of actualising its statutory mandate, the executive secretary, said, “we have been consistent in promoting the development and enforcement of local content implementation in the oil and gas sector and have recorded some key achievements.
He pointed out that  before the Act; “we had annual spend of $20bn with little or nothing retained in-country, Today I can confidently say that we spend $5bn in the country, every year. We targeted four pipe mills, but today we have two World-class pipe mills and five impressive coating yards. Before 2010 only three per cent of marine vessels were Nigerian  owned today, Nigerians control and own 36 per cent of  vessels that are used in the oil and gas industry”.
The executive secretary further explained that Nigeria can presently handle fabrication capacity of more than 60,000 tonnes, while all cables required in the oil and gas sector are all “manufactured in Nigeria, adding that manufacturing of bolts, nuts and flanges fully certified to the required oil and gas industry standard for onshore and offshore projects are now being carried out in the country”.
Other achievements recorded by the board in the same direction, according to the executive secretary, include; “the creation of 35,000 jobs and the assembly of offshore Christmas trees, in-country at the FMC Technip assembly plant in Onne and the GE assembly plants in Onne and Calabar, development of new infrastructure for integration of FPSO’s on the back of Egina project, with a production capacity of 200.000 bbl/day and holding capacity for 2.3 million barrel of oil”.  With these achievements, he said the board has moved the in-country value retention from less than five per cent  before the act to the current 26% level.
As part of measure of achieving local content development, the executive secretary stated that, “the board was supporting indigenous companies venturing into Deep Water offshore projects and operations, as well as collaborating with investors or business organisations, such as Nigeria Liquefied Natural Gas (NLNG) and other business organisations to establish a dry dock facility in the Niger Delta region to cater for the maintenance of big vessels, including LNG carriers”.
Engr. Wabote added that the Federal Government was promoting a domestic gas utilisation programme to encourage use of cooking gas and thereby discourage the use of kerosene, firewood and charcoal, to enhance a cleaner and healthier environment in the country.
Similarly to the gas utilisation programme, he said “CNG ulilisation is another initiative being pursued by the Federal Government to achieve its Gas revolution and utilize the huge gas reserves of 180TCF under the oil gas industry roadmap also known as seven big wins laundered by President MohammaduBuhari in October last year.
With the glimmer of economic hope presented by the Nigerian Content Development and Monitoring Board, (NCDMB), Nigerians are of the view that the gains so far made be consolidated especially in the diverfication of the oil and gas industry.
With an estimated number of 10 million vehicles in the country and less than 10,000 running on CNG and the frittering of over five trillion naira on buying of fuel by over eight million Nigerians depending on generators, a fuel swift to gas utilisation promises a rosy economic future for the country.
An expert in the petroleum industry, Prof. Ogbonna Joel, believes that only through effective diversification of the oil and gas industry can the objective of the Nigeria oil and gas, content development Act be achieved. Speaking in an interview with The Tide, Prof. Ogbonna, urged the Nigeria Content Development and Monitoring Board, (NCDMB) to support indigenous companies and local enterpreneurs to boost their capacity to contribute to national growth, such synergy, he pointed out would promote local based technology and make Nigeria key into the global technological revolution.
Also commenting on the prospect of the Nigeria content development, an Environmental Sociologist, Dr. Steve Wodu, said. The federal Government should put in place proper regulatory framework for the implementation of the Content Development Act.
He said the allegations making the rounds of purported plans by the Nigeria Content Development Board (NCDMB) to move its operational base from the Niger Delta was an ominous sign, and urged the board to be focused on the implementation of its mandates.
It could be recalled that barely one week after it jointly organised a 3-day content development and exhibition workshop with the Port Harcourt Branch of the Nigeria Society of Engineers (NSE) in Port Harcourt, the operational headquarters of the Nigerian Content Development and Monitoring Boards NCDMB in Yenagoa, Bayelsa State was shut down by members of the Ijaw youth Council (IYC).
The reasons advanced by the protecting youths  is that the Board has opened new operational offices in Lagos and Abuja, a decision they said was contrary to the provisions of the Nigeria Content Act.
Tari  Porri who led the protest said the move to open news offices of the board in Abuja and Lagos contravened section 71, sub-section 3 of the NCDMB laws, which stipulate that the Board offices should only be established in oil and gas producing areas.
The recent shut down of its activities by the protesting Ijaw youths is no doubt a litmus test for the board to assert itself in the pursuit of its statutory objectives.

Taneh  Beemene

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Nigeria’s Inflation Drops to 15.06%

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5 days ago

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March 23, 2026

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Three States Record Lowest rates Published 16 Mar 2026 By  Dave Ibemere 3 min read The NBS has revealed that inflation rates dropped again in February 2026 The bureau noted that both headline and food inflation eased on a year-on-year basis Inflation was lowest in Katsina, Imo, and Ebonyi, while the highest was recorded in Kogi.
 Nigerian economy, the stock market, and broader market trends. The National Bureau of Statistics (NBS) has revealed that Nigeria’s inflation rate slowed further in February 2026. According to the bureau in its latest CPI report, the headline inflation dropped slightly to 15.06% from 15.10% in January 2026. Nigeria’s inflation eases to 15%, offering relief to households. It was 11.21 percentage points lower than the 26.27% recorded in February 2025. From breaking news to viral moments.  On a month-on-month basis, inflation stood at 2.01% in February, up from -2.88% in January, showing that prices rose at a faster pace than the previous month. Nigerian stock market records weekly gain as turnover hits N164.8billion Urban vs Rural Inflation NBS noted that urban inflation stood at 15.53% year-on-year, down from 28.49% in February 2025, while rural inflation was 13.93%, compared with 22.73% in the same period last year. Every month, urban inflation rose to 2.55% in February from 2.72% in January, while rural inflation eased to 0.71% from -3.29%. Food Inflation Food inflation dropped to 12.12% year-on-year in February, down sharply from 26.98% in February 2025. Monthly, food prices rose by 4.69%, higher than the -6.02% recorded in January. The NBS attributed the moderation to slower price increases in staples such as beans, cassava tuber, yam flour, crayfish, millet flour, cowpeas, and okazi leaf. The twelve-month average for food inflation was 19.08%, compared with 37.40% in February 2025. States breakdown for All Items The states with the highest all-items inflation rates were: Kogi (23.57%) Benue (22.85%) Anambra (22.09%) The lowest rates were recorded in: READ ALSO Naira appreciates by N27 against US dollar as external reserves cross $50bn Katsina (7.78%) Imo (11.66%) Ebonyi (11.71%) On a month-on-month basis, the highest increases were in Enugu (5.92%), Ogun (4.39%), and Anambra (4.11%), while declines were seen in Zamfara (-2.14%), Bauchi (-1.23%), and Katsina (-1.06%). Food staples contribute less to inflation as prices moderate in February. Photo: Bloomberg Source: Getty Images State Breakdown for Food Inflation Food inflation was highest in: Kogi (26.91%) Adamawa (23.12%) Benue (21.89%) The lowest food inflation rates were seen in: Katsina (5.09%) Bauchi (7.09%) Imo (7.65%) Month-on-Month Food Inflation The states with the highest month-on-month increases in food inflation were: Bayelsa (8.81%) Ebonyi (8.51%) Edo (7.72%) The states that recorded declines were: Katsina (-0.70%) Nasarawa (0.17%) Kano (1.39%) Food price changes across markets in Nigeria Earlier, The  Tide source reported that due to Ramadan, staple food prices across the country are recording sharp increases as Muslims begin the Ramadan fasting season Ramadan is not only a period of abstinence from food and drink, but also a time for ‘reflection, discipline and heightened devotion’ Several traders in Abuja, Taraba, and Kaduna states are taking advantage and have hiked price. The NBS has revealed that inflation rates dropped again in February 2026 The bureau noted that both headline and food inflation eased on a year-on-year basis Inflation was lowest in Katsina, Imo, and Ebonyi, while the highest was recorded in Kogi.
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NDCCTMA, NDDC MDS Challenge Niger Delta Indigenes On Investment In The Region 

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5 days ago

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March 23, 2026

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The Nigeria Delta Chamber of Commerce, Trade, Mines and Agriculture  (NDCCTMA), and the Niger Delta Development Commission ( NDDC ) have challenged Niger Delta entrepreneurs to close the gap in Gross Domestic Products (GDP) differences between the region and that of the South Western part of the country by coming home to invest.
The bodies made the call at a Business Round Table organized by NDDCTMA, in Port Harcourt.
Chairman of NDDCTMA, Ambassador Idaere Gogo Ogan, said to close the gap between the south west region which he said has a GDP seize of about #59 trillion and that of the Niger Delta which is about #34 trillion was to massively invest in the region.
He said no other persons can  do this except sons and daughters from the region.
“For me I believe in statistics,I believe in data and everyday I looked at the data concerning development in Nigeria and from the GDP point of view, the South West has #59 trillion, that is the seize of the south west region economy, the second region following them is the Niger Delta region with GDP seize of #34 trillion,so there is a yearning gap of #25 trillion that separates the south west and the Niger Delta region, that is why we are here.”
Ogan said the region has the capacity to close the gap and even surpassed it but regretted that indigenes of the region have chosen to ignore it in terms of investment.
“We need to close that gap .If we close that gap and even surpassed it,all the negative problems of militancy and unemployment will automatically erase”, he stated.
Ogan noted that the event was organized to remind the people that past efforts of militancy and agitations have not led the region to any where saying “that is why we are gathered here in this room”.
Also speaking, the Managing Director/Chief Executive Officer, NDDC, Dr Samuel Ogbuku urged indigenes of the region not to use the problem of insecurity as an excuse to continue to deny the region of investment  as every part of the country have in one time or the other experienced crisis.
Ogbuku said most indigenes have displayed high level of unpatriotism towards the region by taking investments that would have benefited the people to either Lagos or Abuja.
“With little threat we have left the city, we have gone to Lagos,we have moved  our families to Abuja and Lagos. If you go round GRA all the property, you will see,”to let to let”most of them are now empty “he said.
The NDDC MD said despite the fact that people from the region are doing well in the oil and gas, banking and other sectors, its impact are not being felt at home because they are stationed outside the region.
By; John Bibor
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Cash Handouts Unproductive For Sustainable Agricultural Development – Engineer Kii

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5 days ago

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March 23, 2026

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Rivers State by its natural disposition is gifted with strategic economic advantage, particularly in  agricultural potentials and fortunes. This informs successive governments’ interest in  developing the agricultural sector, such as the School to Land Program, the Shongai Project, among several others.
The objective is to engender and leverage the sector  beyond mere subsistence practices into a full thriving economy, with the engagement and involvement of the youthful and productive population.
The Farm to Future Agro Based Training for Rivers youths by the present administration is notably one of the most pragmatic efforts of the Rivers State Government to engage the prospective creative capital of both the natural and human resources in the agricultural sector for sustainable development.
The concept, premised on the imperative of maximizing the huge agrarian prowess of the state, targets creation of sustainable livelihood for the teeming youth of the state. The project is also intended to achieve the chore needs of food sufficiency and job creation in the state.
This implies a significant deviation from the acculturised norm of expectations of financial benefits as the outcome of government programs and policies.
The tenets of the program are expressly difined in concept and practice as shown in the phases of its execution.
However, some beneficiaries of the project recently staged a protest, allegdging unpaid largesse, diversion of funds and perceived slighting by the Rivers State Ministry of agriculture. The said protest has stirred up concerns among stakeholders about how people view  government policies.
Many see the protest  as an attempt to create tension around the program and sabotage its original objectives.
Stakeholders and commentators are of the view that the Rivers State is in dire need of development in every critical sector, as such the  Ministry of Agriculture and its partners should be given the benefit of the doubt to implement the project to its logical conclusion without being hauled with accusations.
The former Commissioner for Agriculture, Engineer Victor Kii who was at the fore of driving the program has in a press statement debunked the allegations and sued for calm, restraint and understanding. Engineer Kii assured the participants that the empowerment phase will be implemented as soon as administrative normalcy is restored.
He commended the participants for their commitment and discipline during the training and urged them to uphold the norms of the program rather than misrepresenting its intentions.
Some pundits who commented on the recent development decried the fact that many people  still hold on to the notion that  incentives billed to create sustainable impact through skills based programs, should be given out as  largess, without adroit supervision of its utility function. This practice  has however created a culture of economic doldrum, dependency and servitude in the past.
Thus the idea of seen the Rivers Farm to Future project  as a mere quixotic experiment for cash benefits  without achieving set goals is counter productive. Such opportunistic thinking have stunted government efforts  over the years in achieving long term objectives of development.
As disclosed by the former commissioner for Agriculture in his detailed explanation, the Farm to Future project was strategically designed to address this culpable deficit in institutional planning and consolidation of results.
The former commissioner gave an  explicit description of the nexus of operation of the program.
As revealed by him;  ” The program is a strategic intervention to equip young people in Rivers with practical skills and to nurture a new generation of agricultural entrepreneurs. 500 beneficiaries received intensive agri business training in the first phase.”
 He pointed out that the program was conceived and designed in line with global best practices which de emphasizes indiscriminate cash handouts for beneficiaries. Rather it promotes practical engagements in agricultural activities and business initiatives.
At the end of the training in February, beneficiaries were encouraged either individually or in cooperative clusters to identify value chain for establishment of viable businesses.
They were also asked to produce structured business proposals for perusal and review by the ministry of agriculture and appointed consultants, after which successful proposals would be forwarded to the Bank of Agriculture with Rivers State Government providing guarantees.
The strategies for implementation include field inspections and evaluation for beneficiaries who had already commenced practical activities in identified locations.
The approach was to discourage the commonplace ideology of diverting funds meant for specific projects for unrelated purposes, thereby undermining the conscious exploration of creative potentials into long term benefits.
The process was however temporary interrupted by the dissolution of the Rivers State Executive Council and the ongoing renovation of the Rivers State Secretariat complex but the profound optimism and positive expectations that are the hallmark of the project remains sacrosanct.
Engineer Kii assures.
By: Beemene Taneh
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