Business
FG To Encourage Local Equipment Production
In a bid to ensure to retention of money spent on importing equipment used in Nigeria Oil and Gas industry, the Federal government plans to build industrial clusters to be mentored by original equipment manufacturers in the country.
According to industry data, even though the participation of indigenous companies in the industry has resulted to the retention of about $2 billion out of over N3.8 billion spent annually since most of equipment used in manufacturing the facilities were imported, jobs which are supposed to be created in the country and the value it would added to the economy that are exported.
Nigerian Content Development and Monitoring Board’s (NCDMB),Executive Secretary, Engr Ernest Nwapa explained that even though multinational companies operating in the country are complying with the provisions of the Nigerian content law, evaluation of the records at present was not commensurate with the current and future objectives of the local content.
In line with the local content Acts, the NCDMB boss said efforts were being made to reverse the trend by encouraging Nigerian companies to start to manufacture some of the components and equipment that would be used to produce facilities in the industry.
He disclosed that government has given approval for invitation of original equipment manufacturers (OEMs) to Nigeria to see how they can collaborate with indigenous companies especially the Small and Medium Enterprises (SMEs) to start the manufacturing of these component and equipment.
According to him, “In February this year, the board will visit all the governors of the oil and gas producing states to discuss on how we will collaborate with them to stimulate local activities. We will partner with the state governments to promote indigenous skills and competences. The board wants to bring big manufacturing companies, the original equipment manufacturers (OEMs) to the country. We want to set up industrial complexes or clusters in the oil producing states.
“The board will bring Small and Medium Enterprises (SMEs) interested in manufacturing to the industrial complexes where the big OEMs will guide them in manufacturing some of the equipment and components used in the oil and gas industry to international and industry standard”.
Nwapa added that the Equipment Component Manufacturing, Initiative (ECMI) was aimed at maximizing local value addition to meet the targets for equipment supply in accordance with the schedule of the Act.