NCDMB, NLNG, Oil Firms, Others Oppose Hike In NCDF, Commission Bill

The Nigerian Content Development and Monitoring Board (NCDMB), and key organisations in the oil and gas industry, have cautioned against increasing the percentage of the Nigerian Content Development Fund (NCDF) from the current one per cent to two per cent as proposed in the amendment of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act 2010.
In a statement in Abuja, the NCDMB and the other organisations canvassed this position in separate presentations they made, last Monday, at the two-day public hearing organised by the Joint Senate Committee and House of Representatives Committee on Nigerian Content Development and Monitoring.
The other organisations and stakeholders, according to the NCDMB, are the Nigeria Liquefied Natural Gas (NLNG), the Petroleum Technology Association of Nigeria (PETAN), Petroleum Contractors Trade Section (PCTS), Oil Producers Trade Section (OPTS).
The NCDF, according to the NCDMB, is deducted from the value of oil and gas contracts awarded in the oil and gas industry.
Representatives of the leading oil industry organisations advised against the proposed increment, stressing that an amendment of the NOGICD Act should promote and protect local businesses and encourage entry of foreign capital and technology into the country to further grow the sector.
They also strongly opposed the proposed bill, which sought to repeal the Nigerian Oil and Gas Industry Content Development Act 2010, and enact Nigerian Local Content Development and Enforcement Commission Act.
In his submission to the legislature, the Executive Secretary of the NCDMB, Engr. Simbi Wabote, argued that the one per cent NCDF deduction should be maintained, given the pressure that the global oil and gas companies were facing with cost escalations and price reductions in the industry.
According to him, with prudent management of the NCDF and the full cooperation of the operating companies, we believe local content shall continue to operate efficiently and grow.
On the new provision to earmark 0.5 per cent of gross revenue of oil and gas companies for research and development, the executive secretary of the NCDMB, who was represented by Director of Planning, Research & Statistics, Mr. Patrick Obah, stated that “the board welcomes it on the condition that the money would be for the operator’s own utilization.