On the heels of remarkable discovery and exploration of oil and gas resources across several countries in Africa, the Nigerian Content Development and Monitoring Board (NCDMB) has proffered strategies that would enable those nations to institute sustainable Local Content practices, achieve in-country value addition and benefit maximally from the exploitation of their hydrocarbon resources.
The Executive Secretary NCDMB, Engr. Simbi Kesiye Wabote offered the suggestions at the two-day Namibia Oil and Gas Conference held in Windhoek, Namibia.
He hinted that Africa currently accounts for about 12% of annual global oil production, but only consumes less than 4% of the global production, describing the situation as potential opportunities in production, processing and utilization of oil and gas within the continent for improvement in the standard of living.
The NCDMB boss gave an overview of key parameters that are critical to in-country value addition and growth of the sector on a sustainable basis.
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He stated that some of the parameters include; Regulatory Framework, Gap Analysis, Capacity Building, Funding and Incentives, Research and Development, and Access to Market. Citing the example of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, 2010, he said: “An enabling regulatory framework backed with the appropriate legislation is very fundamental in local content practice,” and that it is “better than directives or policies that are subject to speculations or compliance on ‘best endeavour’ basis.
According to him, once such a statute is in place “It is no longer optional or debatable whether to comply with local content requirements.”
He said: “The law must promote and enable investments rather than become a stumbling block to existing or new investors both locally and internationally,” and that “Provisions should be made in the law to address any lacuna without having to review the entire law such as the provision in the NOGICD Act for utilization of Ministerial Regulations to address any gaps or opportunities.”
Besides, he noted, a regulator “must be pragmatic in applying the law as the oil and gas industry is very dynamic such that aspirational goals and prevailing realities are not always on the same trajectory.”On Gap Analysis, the NCDMB boss said, “Baseline and periodic gap analyses are essential to determine gaps that are needed to be closed in the areas of skills, facilities and infrastructure.”
