The Executive Secretary of the Nigerian Content Development and Monitoring Board, Mr Simbi Wabote, has expressed worry over the 50 per cent level of content and development recorded in the oil and gas sector this year.
He also notes that the 50 per cent level in the sector remained unchanged from the level it was since last year, 2022. This, according to Wabote, was based on monitoring and evaluation of the industry activities for the year in review.
Wabote revealed this on Tuesday during the opening ceremony of the 12th edition of the Practical Nigerian Content Forum (PNCF) held in Yenagoa, Bayelsa State.
As a result of the stagnated level of content and development in the sector, Wabote tasked stakeholders in the industry to reflect on the 54 per cent Nigerian Content level recorded in the sector’s activities in two consecutive years.
Speaking to the theme of PNCF for this year: ‘Deepening Nigerian Content Amidst Divestments, Domestication and Decarbonisation’, Wabote tasked stakeholders to improve the level of content and development in the sector in the subsequent years.
He said that although the 54 per cent was commendable, however, it should be a concern to stakeholders in the industry whether the percentage figure signposts a stagnation or a decline in Nigerian content level in the sector.
Wabote further lamented disturbing signs indicative of a decline in Nigerian content level in the industry, stressing that they could be countered because it was not the first time that local content practice had experienced such dynamics.
“Your Excellencies and distinguished ladies and gentlemen…it is my pleasure to announce that the 2023 Nigerian Content level in the Nigerian oil and gas industry is 54% based on our monitoring and evaluation of industry activities. This is similar to the 54% NC level achieved last year.
“While the 54% NC Level achieved in 2023 is commendable, it calls for industry stakeholders to reflect if this is a sign of stagnation or the inflexion point leading to the decline in NC level in the oil and gas industry. From where I sit, I see some disturbing signs pointing in that direction, and I believe we can counter these emerging dynamics as this is not the first time we have faced such an onslaught on local content practice.
“I am sure you all know that getting the industry to this level of Nigerian Content is not a walk in the park, and I believe all discerning stakeholders in the industry will play their part to prevent us from going back to the dark days of implementing Nigerian Content as a token of consolation. The nexus between high Nigerian Content levels and the relative peace in the industry must not be lost on us”, he said.
The NCDMB boss, however, stated that the performance was well above the minimum 47 per cent Nigerian content set for 2023 by the board’s project management office, noting that the agency outperformed the 42 per cent local content target set for 2022 by achieving 54 per cent Nigerian content.
He said, “Further analysis of this year’s NC level performance shows that the top three performers of in-country spend are Shipping, Surveying/Positioning services, and Inspection/Testing and Certification with each at 100% NC level.
“On the other hand, the bottom three performers are Modification and Maintenance at 26% NC level; Health, Safety and Environment at 31% NC level; and Materials and Procurement at 32% NC level.”
