The Nigerian Government announced the launch of an Oil and Gas E-Market Place, which is expected to be a key provision of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.
This was disclosed by Nigerian Content Development and Monitoring Board (NCDMB) and the Nigeria LNG Limited in a statement on Monday evening.
Executive Secretary NCDMB, Engr. Simbi Kesiye Wabote announced that the rollout of the Oil and Gas E-Market Place project would be carried out in phases, starting with the Nigerian LNG Limited.
E-Marketplace
The NCDMB boss noted that the Nigerian Oil and Gas Industry Content Development (NOGICD) Act under Section 106 defines the “Oil and Gas E-Market Place
- “As a virtual platform for buyers and sellers of goods and services in the oil and gas industry that allows for speedy and transparent transactions.”
He added that the provision of the Act had not been implemented since the enactment of the Act in 2010.
Wabote further revealed at the Nigerian Content Seminar at the Nigerian Oil and Gas Energy Week (NOG 2023) held in Abuja, that the rollout of the Oil and Gas E-Market Place project would be carried out in phases with the setting up of a joint working committee to create a blueprint for the first phase.
- “A joint working committee comprising members of the company and the Board was formed to co-create the Blueprint for the Phase-1 implementation of the E-Marketplace, while subsequent phases of the project will include members of the Oil Producers Trade Section (OPTS), Independent Petroleum Producers Group (IPPG), and the other stakeholder groups.”
Reason for E-Marketplace
Wabote added that the provision is at the heart of developing local capacities and capabilities in the oil and gas industry, he explained:
- “This provision explains why the Board embarked on several initiatives including the funding support and other initiatives that are directed toward developing both human capital and infrastructure.
- Some of the initiatives include the $300 million Nigerian Content Intervention Fund with the Bank of Industry (BoI), the $100 million Matched Fund with NEXIM Bank, the $ 50 million R&D Intervention Fund, and the $50 million NOGAPS Manufacturing Fund.
- “Other support provided by the Board to local companies include partnering with local businesses to establish modular refineries, gas processing plants, LPG storage facilities, Base Oil production plant, LPG depot, and refilling plants, and others with clear exit plans once the target goals are achieved.”
The NCDMB reported that the Industrial Parks are at various stages of development in seven states namely Akwa Ibom, Bayelsa, Cross River, Delta, Edo, Imo, and Ondo states, hinting that “the NOGAPS Industrial Parks at Odukpani in Cross River state and the one at Emeyal-1 in Bayelsa state are both at advanced stages of completion and will commence operations in 2024.”
In case you missed it
Recall Nairametrics reported earlier that the NCDMB Chief, Wabote also noted that the local content in Nigeria’s oil and gas sector has experienced a significant surge, soaring from 26% in 2017 to an impressive 54% in 2022, highlighting the remarkable progress made in promoting indigenous participation in the industry.
During his presentation at a seminar with the theme: “Nigerian Content’s Role in Achieving Energy Security”, Wabote said that in the last five years when NCDMB started implementing the Strategic Roadmap, it has more than doubled the level of Nigerian content in the oil and gas industry.
