The Nigerian Content Development and Monitoring Board (NCDMB) is to roll out new guidelines for accessing the $600 million Nigerian Content Development Fund (NCDF), its Executive Secretary, Simbi Wabote, has said.
He spoke at the Sixth Practical Nigerian Content Conference in Abuja.
Noting that operators had been complaining about problems in accessing the fund, Wabote said the guidelines would remove barriers.
He said the fund had grown over the years, adding that six companies had accessed it. He did not list them.
Wabote said: “I must say that it is not directly giving money to those six Nigerian contractors; it is about guaranteeing some of the loans that they got from the banks because we are not a funding institution.
“Not much has been expended from that fund for capacity development. Part of the strategy of this new board is to come out with a very transparent process through which genuine Nigerian contractors involved in the oil and gas sector will have access to the fund.’’
The Board pledged to expand its operations to the midstream and downstream sectors of the oil and gas industry in line with Section 106 of the Nigerian Content Act.
Wabote listed the Floating Production Storage Offloading (FPSO) integration yard of LADOL in Lagos, which carries part of Total’s Egina FPSO, as one of the great achievements of the Nigerian Content. The project will begin operation between next year and 2019.
Besides, Wabote said the Board would unveil a five-year roadmap that would chart a new Nigerian Content implementation path to increase value addition in the industry.
He confirmed that the Board was rejiging the Nigerian Oil and Gas Parks Scheme (NOGAPS) to domicile oil and gas components manufacturing close to oil fields and involve local businesses in operations.
According to him, the sites for the parks have been acquired while designs will soon begin. “We have set a timeline for every milestone we intend to achieve in the next couple of months; at least we should have one up and running to test the benefits before we replicate,” he said.
The NCDMB chief said the major focus of the Nigerian Content Law was not “Nigerianisation” of the sector, but “domiciliation” of value-adding activities.
He said there were investment opportunities in fabrication and construction; manufacturing of component parts, equipment, spare parts, accessories, drilling fluid, sub-sea production systems, line pipes, and personal protective equipment (PPE), among others.
“While some people are worrying about the money they have contributed, many are not making their contributions as enshrined in the Act. This board will look at strategies to make them comply with the provisions of the Act,” Wabote said.