Local oil and gas operators increased from 53 in 2018 to 114 in 2023. This is according to the Nigerian Content Development and Monitoring Board (NCDMB).
During the ongoing Practical Nigerian Content Forum held in Bayelsa state, the Executive Secretary of the NCDMB, Engr. Simbi Kesiye Wabote gave these statistics.
Wabote said that according to data from the Nigerian Oil and Gas Industry Content Joint Qualification System (NOGIC-JQS), there has been significant growth in registered indigenous industry operators.
These operators increased from 53 in 2018 to 114 in 2023. Similarly, indigenous service companies went up from 8,000 to 11,000 during this same period. Additionally, individual registrations rose substantially from 140,000 to almost 400,000.
One of the achievements under the Roadmap’s Technical Capability Development pillar was the boost in in-country fabrication capacity. It increased from 60,000 tons per year to 250,000 tons within that timeframe.
Oil and gas parks to be commissioned in Q1/2024
During the forum, the NCDMB also reported progress on the development of eight industrial parks meant to support the manufacturing and assembly of equipment and materials for the industry.
Among these, the Nigerian Oil and Gas Park Scheme (NOGaPS) at Emeyal-1 in Bayelsa State, and a similar Park in Odukpani in Cross River State, are scheduled for commissioning in the first half of 2024.
More Insights
Regarding the initiatives started under the Nigerian Content 10-year Strategic Roadmap, the agency has completed 83% of the total 96 initiatives. The Nigerian Content level in 2023 remained at 54%, the same as in 2022.
Meanwhile, the Strategic Roadmap, launched in late 2017, aimed to increase Nigerian Content in the oil and gas industry to 70% by 2027. It operates based on five pillars and four enablers, guiding focus areas supported by short, medium, and long-term initiatives.
Wabote said:
- “This performance is well above the minimum target of 47% Nigerian Content set for 2023 by the Board’s Project Management Office (PMO) just like we outperformed the 42% Nigerian Content target set for 2022 by achieving 54% Nigerian Content.”
What you should know
In September 2023, the Nigerian National Petroleum Company Limited (NNPCL) and the Nigerian Content Development and Monitoring Board (NCDMB) agreed with the International Oil Companies (IOCs).
They signed a Memorandum of Understanding (MoU) aiming to speed up the process of awarding contracts, aiming to make it take no longer than 180 working days.
The main advantages outlined in this agreement are cutting down the time it takes to finalize different types of contracts. For open competitive tenders, selective tenders, and single-sourcing tenders, the goal is to reduce the time to 180, 178, and 128 working days respectively.
Right now, the best effort performance in these categories is taking longer—327, 333, and 185 working days respectively. The aim is to significantly trim down these timelines to make the process more efficient.
