Niger Delta
Local Content: Five Firms Get OEM Certification
A major milestone in the implementation of the Nigerian Oil and Gas Industry Content Law 2010 was achieved last Monday in Port Harcourt, the Rivers State capital when five multinational companies were granted the first-ever permission to manufacture in-country, original equipment for the oil and gas industry.
The five companies are Endress-Hausser, ABB, Siemens, New Way, and Bonney Forge; all world-class original equipment manufacturers (OEM), who have indicated readiness to roll out by 2014, critical equipment hitherto imported into the country for use by the oil and gas industry players.
Signing a memorandum of understanding (MoU) to herald the commencement of the process designed to domicile the manufacturing facilities of the companies in Nigeria, Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr Ernest Nwapa, said the quantum leap would fast track the availability, accessibility and affordability of critical equipment required in the industry, create employment opportunities for thousands of Nigerians and boost wealth creation across the value chain.
Nwapa said that the initiative, facilitated by the Shell Petroleum Development Company of Nigeria (SPDC), would avail operators in the industry opportunity to procure original equipment hitherto imported into the country, directly from the manufacturers within Nigeria, thereby saving huge foreign exchange, procurement time, among others.
He said that with the building of original equipment manufacturing plants in Nigeria, the companies’ would have strong manufacturing footprint in-country, thus enhancing the prospects of achieving 70 per cent local content in the industry in line with the law.
Nwapa noted that when completed in 2014, the plants would manufacture equipment for both local consumption and export, and commended participating companies for blazing the trail in local content development, promising to recommend them to the minister of petroleum for special windows to enjoy prescribed privileges in the industry.
Speaking, Chairman, House of Representatives Committee on Local Content, Hon Asita Honourable, expressed the conviction that Shell was actually leading the way in local content development in the industry, and stressed the determination of the National Assembly to provide the enabling climate for the development of local content that would deepen Nigerians’ participation in the industry.
He said that the National Assembly was impressed with the level of compliance with the Nigerian Content Law 2010 by some of the major companies, and stated that members were ready, more than ever before, to strengthen the legislative framework to make greater number of Nigerians benefit from the industry.
In his remarks, General Manager, Nigerian Content Development, SPDC, Mr Igo Weli, said the company was delighted to be pioneering the certification of original equipment manufacturers to establish plants in-country, and added that with the development, more Nigerians would be gainfully employed, huge foreign exchange saved for re-investment into other areas of need while facilitating improved revenue generation and wealth creation.
Weli, who represented the Managing Director, SPDC, Mutiu Sunmonu, said that the strategy was in keeping with the company’s desire to deepen its impact on the people within its areas of operation, and promised to encourage more indigenous oil and gas companies to partner more internationally-recognised genuine equipment manufacturers to invest in Nigeria.
President, Petroleum Technology Association of Nigeria (PETAN), Engr Emeka Ene, praised Shell for the initiative to facilitate the partnership between indigenous and foreign oil and gas equipment manufacturing companies, and charged other multinational firms to emulate the policy.
News
China Alerts Rivers, A’Ibom, Abia Govs To Economic Triangle
The Mayor of Housing, My-ACE China, has alerted the Governor of Rivers, Akwa Ibom, and Abia states to what he calls an emerging ‘Economic Triangle’ within their states.
Mr China, a real estate success strategist who has won numerous local and international awards, has thus drawn the attention of the governors of the concerned states to the emerging development and has urged them to intentionally accelerate the emergence of the economic triangle.
Speaking to newsmen in Uyo, Akwa Ibom State capital at the conclusion of his business trip to the state, Mr China, who is the managing director of the Housing and Construction Mayor Limited, said the envisaged economic corridor would compete favourably with the Lagos economic hub or even better.
He said: “Talking about ‘Economic Triangle’, the only place that can wrest economic power from Lagos is Akwa Ibom, Abia, and Rivers states axis or corridor. This corridor contains more than Lagos has, if they can be interconnected with smooth roads, ports, and if their blue potentials are unlocked. They will not only wrest power from Lagos but would be more lucrative.”
The investor who is behind the emerging Alesa Highlands Green Smart City in Eleme, near Port Harcourt, said the new ‘Economic Triangle’ has a bigger potential due to massive land assets with the corridor plus blue economy and the existing hydrocarbon industry.
Explaining, Mayor of Housing said Aba (Abia State) provides the biggest fabrication capacity in West Africa to supply goods to the Gulf of Guinea; Port Harcourt provides access to the Gulf of Guinea for off-taking Aba products, and the Uyo provides deep sea port at Ibaka and international airport facilities as well as forest reserves for massive agro-economy.
He said with sea ports in Rivers State and deep seaport in Akwa Ibom, and international airports in Rivers and Akwa Ibom, Aba can focus on adequate power supply and fabrication boom to supply a new booming market around the economic triangle.
By doing this, he said, jobs would spill out in huge quantities and more manufacturers would be drawn from all over Africa to boost the fast coming African Continental Free Trade Agreement (AfCFTA). He said Nigeria would thus have two major trade nodes in West Africa; Lagos and the PH/UYO/Aba triangle.
He said goods going to or coming from Chad, Niger, and the rest of Central Africa can head to the Lagos ports or to the Ibaka/PH ports zone in the new economic triangle.
He said with power supply made stable, good roads, excellent security system, and ease of doing business enthroned in the zone, the South-South and South East would become the biggest economic nerve in the near future.
Mayor of Housing called on governors of the three states to be intentional about the new corridor, put away political differences (if any), and create this corridor by agreeing on projects each state would execute with a short period of time so the states would be linked by good roads, communication, security, trade laws, concessions to investors, etc.
He remarked that northerners were already heading to the Onne Port in Rivers State to export goods, saying creating a commission to oversee the development of the ‘Economic Triangle’ would fast-track its emergence.
He observed that people of the three states are peaceful and usually preoccupied with zeal for economic prosperity, saying that if they are linked to such huge opportunities staring at them in the emerging economic triangle, they would totally shun violence and focus on prosperity.
Mr China insisted that the emerging economic triangle would form a big node not only into the Gulf of Guinea economic zone but into Africa because AfCFTA is about production, certification, market availability, and easy transport nodes by sea and air. He said the new economic triangle boasts of all the factors.
“They can only realise this by working together, through collaboration. One state cannot do it but a triangle of the three will create it through seamless interconnection, ports, industrial park, etc. The people will be the richest and internally generated revenue (IGR) will be the biggest in the country,” he said.
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