The Nigerian Content Development and Monitoring Board (NCDMB) said the pragmatic implementation of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act has saved $2 billion in the Engineering Procurement and Construction (EPC) contract for the Nigeria Liquefied Natural Gas (LNG) Train 7 Project.
The Executive Secretary of the board, Engr. Simbi Kesiye Wabote, stated this on Monday during the 2020 annual capacity building workshop organised by the board for the Judiciary.
The workshop, which was held via zoom and drew over 117 participants.
Wabote said that contrary to wrong insinuations held in some quarters, ample evidence has proven that sustainable local content practice reduces the cost of oil and gas projects in addition to creating job opportunities and economic prosperity.
He said: “In the LNG Train 7 project contract, which was recently concluded and awarded, the difference in price between Saipem that had established itself in Nigeria and the second-lowest bidder that was coming from outside the country was US$2bn. That’s a huge sum of money that this country would have lost if not for the drive for the development of local content.
On the possibility of recording 100 percent Nigerian Content in the sector, the Local Content boss clarified that “the aspiration is neither possible nor desirable, especially for a developing country like Nigeria.
“But you are going to see 70 percent. That is our aspiration, growing from five percent which was the level when Nigerian content started.”
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