Nation
1% Oil Industry Contracts For Local Content Fund –Nwapa
Henceforth, one per cent of every contract awarded in the Nigerian oil and gas industry is to be paid into the Nigerian Content Development Fund (NCDF) in accordance with the Nigerian Content Act.
Mr Ernest Nwapa, the Acting Executive Secretary of the Nigerian Content Monitoring Board (NCMB), made the disclosure in Onne, near Port Harcourt, on Thursday, after inspecting the pipe threading yard of a private firm.
The Tide’s source reports that NCMB is an off-shoot of the Nigerian Content Bill recently assented into law by President Goodluck Jonathan.
The NNPC quoted Nwapa in a statement in Abuja on Friday as explaining that the NCDF would be deployed specifically for developing the capacity of Nigerian service providers in the oil and gas sector.
He said the fund would be managed by the board of NCMB and was different from the $350 million Local Content Fund which was put together by NNPC in 2007 to serve as a working capital for Nigerian companies that got service contracts in the industry.
Nwapa said: “In this case, you need to demonstrate the bankability of an investment and the board will begin to talk to you”.
“You are going to show a business plan and prove that the investment will be able to repay the loan”.
“The fund will not be managed by engineers or officials of the board. It will be managed by a proper fund manager with international best practices”.
“So, there is no question of utilising the fund for what it is not meant for.”
Nwapa said the vision of the NCMB was to grow the funds and use it to attract other financial players who would leverage on it such that Nigerian service providers would do business knowing that the fund was available for them to use.
He said the Nigerian Content Act was very robust as it was put together by legislators who understand the oil sector with inputs from members of the industry.
The chief executive called on Nigerian investors to take advantage of the immense opportunities which the Nigerian Content Act had created for them.
”Even if you create these opportunities and Nigerians do not take them, the board would not become manufacturers”.
“The board would only protect the rights of manufacturers, so Nigerians should take advantage of the law,” Nwapa said.
He also commended the management of Botro Marine & Oil Services, who he said took a risk to invest in the pipe threading yard in Onne in 2007 because of their confidence in the Nigerian Content Policy.
”This is the model we want to see because from cutting these threads, it is no longer in his hands.
“The next step would be how to think of manufacturing the pipes themselves because the time has come for us to do anything that can be done in Nigeria.
”Those machines are not made in Nigeria. The law allows you to bring machines from anywhere to work here and retain capacity in the country.
“It is important to our government and our people that we create opportunities for Nigerians to work here,” Nwapa said.
He said about 100 companies were operatiing at the Onne Free Trade Zone a few years ago, but the number had swelled to 150.
Nwapa said the government had the challenge to ensure that service providers at the Onne zone got jobs.
He said that with the Nigeria Content Act now operational, it was no longer at the discretion of officials to decide whether to give jobs to one or two companies.
”It is now law and they have a right to challenge anybody who does not give them jobs and rather takes it elsewhere outside Nigeria.
“President Goodluck Jonathan is bent on ensuring the successful implementation of the Nigerian Content Act.
“He did not keep that bill for more than two weeks before signing it into law and set up this board immediately.
“And, he has given us marching orders and already we have hit the ground running,” Nwapa said.
The source also reports that Nwapa, until this recent appointment, was the Group General Manager, Nigerian Content Division in NNPC.
Nation
HYPREP Marks 15 Years Of UNEP Report, Highlights Major Cleanup Milestones
The Hydrocarbon Pollution Remediation Project (HYPREP) has commemorated the 15th anniversary of the release of the United Nations Environment Programme (UNEP) Environmental Assessment Report on Ogoniland, reaffirming its commitment to restoring the environment and improving the livelihoods of affected communities.
In a statement signed by the Project Coordinator, Prof Nenibarini Zabbey, to commemorate the anniversary, HYPREP described the anniversary as a significant milestone in Nigeria’s environmental restoration efforts, noting that the project has made remarkable progress in implementing the recommendations of the landmark UNEP report released on August 4, 2011.
The UNEP report had revealed extensive oil pollution across Ogoniland, severe environmental degradation, and serious public health risks resulting from decades of petroleum operations. It also recommended an initial $1 billion fund to commence the cleanup of the affected communities.
According to HYPREP, the Federal Government formally launched the Ogoni clean-up in 2016, while the Project Coordination Office was established in 2017 to drive the implementation of UNEP’s recommendations.
Zabbey said the current administration has continued to prioritise the project under the Renewed Hope Agenda.
Providing an update on the cleanup, the Project Coordinator disclosed that 30 of the 65 contaminated sites identified by UNEP have been fully remediated, while work is ongoing at several medium- and high-risk locations. It also stated that more than 1.5 million mangrove seedlings have been planted as part of what it described as the world’s largest restoration of oil-degraded mangroves, with over 1,000 hectares of shoreline already rehabilitated.
Zabbey further revealed that 49 Ogoni communities have been connected to potable water schemes through multiple water projects and booster stations aimed at providing safe drinking water across the region.
In the health sector, he said the 100-bed Ogoni Specialist Hospital in Kpite and the 43-bed Cottage Hospital in Buan are nearing completion, adding that several existing health facilities have been upgraded with modern medical equipment, while five ambulances have been donated to improve emergency healthcare services. The Project Coordinator also disclosed that a three-year human health biomonitoring study is being conducted in collaboration with the World Health Organization’s International Agency for Research on Cancer (IARC).
On economic empowerment, Zabbey stated that the Project has created more than 8,000 direct jobs and trained thousands of Ogoni youths and women in various vocational and technical skills, including software development, cybersecurity, aviation, commercial diving, seafaring, mechatronics, and creative arts. The project also reported awarding scholarships to more than 1,000 students, providing grants to small businesses, and supporting persons living with special needs through skills acquisition programmes.
The statement further highlighted ongoing legacy projects, including the Ogoni Power Project and the Centre of Excellence for Environmental Restoration, which it said is about 96 per cent complete. HYPREP also welcomed the recent designation of the Ogoni Wetland as a Ramsar Site of International Importance and pledged to continue promoting biodiversity conservation and sustainable management of the ecosystem.
Marking the anniversary, Zabbey said the progress achieved over the past 15 years demonstrates the collective commitment of government, development partners, stakeholders, and local communities to restoring Ogoniland. He called for renewed collaboration to sustain the cleanup effort, promote environmental sustainability, and support the long-term development of the region. 3
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