LAGOS – The Nigerian Content Development and Monitoring Board (NCDMB),has promised to revive the insurance services guidelines the Board signed in June 2022 with the National Insurance Commission (NIACOM), which would oblige the Nigerian oil and gas industry to patronise the local insurance sector.
Engr. Felix Omatsola Ogbe, the Executive Secretary of NCDMB, stated this in Lagos while speaking at a breakfast meeting with some media executives.
He dismissed insinuations that local content implementation increases the cost of producing crude oil in Nigeria.
He clarified that the major drivers of increased cost of crude oil production are downtime and disruptions in operations caused by community issues or technical problems.
Other challenges responsible for extraneous costs include the cost of providing security and the activities of briefcase contractors, he said.
He spoke on the board’s strategies for enabling growth of the industry, stating that NCDMB was working intently to create an enabling environment for international oil companies to take final investment decisions for new projects and was evolving policies to support indigenous oil and gas service companies.
He hinted on plans to launch a major initiative tagged “Back to the creeks.”
This policy will take the impact and contribution of local content implementation to oil producing communities and other hinterlands across the country.
He said the board had eliminated middlemen from the oil and gas industry value chain and contributed to shortening the oil industry contracting cycle to six months, courtesy of the three Presidential Directives on Local Content operations issued by President Bola Tinubu in March 2024.
He acknowledged that the success of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act and the Nigerian Content 10-year strategic roadmap depends largely on public communication, awareness and support from key oil and gas stakeholders.
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He confirmed that NCDMB had complied fully with the Presidential Directive on Local Content Compliance Requirements, 2024 (EO 41), which sought to ensure that only local service companies that have domiciled proven capacities and capabilities can participate in oil and gas tenders.
He also indicated that NCDMB has reduced its touch points and fast-tracked projects approval processes, in compliance with the Presidential Directive on Reduction of Petroleum Sector Contracting Costs and Timelines, 2024 (EO 42).
He also appreciated the media for projecting the activities and programmes of the Board and assured that cooperation with the media would be deepened under his leadership as the Executive Secretary.
Mr. Esueme Dan Kikile, the General Manager, Corporate Communications and Zonal Coordination, indicated that the breakfast meeting was organised to introduce the Executive Secretary formally to leading media stakeholders.
Other senior management of NCDMB that attended the breakfast meeting included the Director Corporate Services and Capacity Building, Dr. Ama Ikuru; Director Monitoring and Evaluation, Mr. Abdulmalik Halilu; Director Projects Certification and Authorization, Engr. Abayomi Bamidele and Director, Legal Services, Mr. Naboth Onyesoh, Esq.
In his comments, Director Corporate Services and Capacity Building, charged media stakeholders to report Nigeria in a positive light, to attract investments in the oil and gas sector.
The Director of Monitoring and Evaluation, Mr. Abdulmalik Halilu gave an update on the performance of the Nigerian Content Intervention Fund (NCI Fund).
He rated the Fund’s performance as over 90%, judging by the percentage of access by qualified companies and repayment by the borrowers.
He equally hinted that the Executive Secretary had constituted a team to review the Community Contractors Fund, which is a poor performing product under the Nigerian Content Intervention Fund (NCI Fund).
He expressed hope that an announcement would soon be made on the remodeling of that particular product, new partners and product papers.
The Director Projects Certification and Authorization, Engr. Abayomi Bamidelehighlighted the increased number of projects approved by the Board since it started implementing the Presidential Directive on Local Content.
He added that the Board was equally supporting companies seeking to fastrack gas investments to take advantage of the Presidential Directive on Tax Incentives, Exemptions and Remissions for the Oil and Gas Companies
