The Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Simbi Wabote, has said that over $8billion is saved annually as a result of the Nigerian Local Content law.
Wabote revealed this in his speech at the 5th Valuechain Magazine annual lecture and awards in Abuja recently.
The NCDMB Executive Secretary, who was represented by Head, Legal Services at the Board, Naboth Onyeso, noted that the picture has changed completely under the local content act.
He said: “Under the Act, about $8billion (USD) of the annual spend is now retained in-country.”
Wabote said that the implementation of the Act has spurred the establishment of several important oil and gas plants
plants and facilities, including two world-class pipe mills and five modern pipe coating plants.
According to him, these facilities have helped to reduce Nigeria’s dependency on imported foreign pipes or coated pipes in the industry.
“Contrary to the sad situation before the Act regarding projects like USAN, Agbami, Erha, and Bonga, which offered limited access to indigenous service companies and left behind no legacy infrastructure, under the NOGICD Act, an FPSO integration yard was constructed on the back of Total’s Egina project. It was in this facility that the topsides of the Egina FPSO hull were integrated in the Ladol Free Zone in Lagos. As at today, this is the only FPSO integration facility in Africa.
Similarly, there are also four (4) active dry-docking facilities in PH, Onne, and Lagos.
“In terms of asset ownership, the Act also triggered phenomenal change. From less than 5% ownership of marine vessels prior to 2010, over 40% of the marine vessels used for oil and gas operations now are owned by Nigerians. Marine vessel ownership by Nigerians, helps to claw back significant portion of the industry spend in this sub-sector.
“In all aspect of engineering, the industry is doing exceedingly well. Unlike before the Act, Front-End Engineering (FEED) and Detail Engineering Designs are now done in-country. In fabrication, Nigeria has witnessed unprecedented rise in fab yards