NCDMB Mandate & Engr Wabote Unparalleled Giant Strides

  

By Majesty Inegbagha

Undoubtedly, the Nigerian Content Development and Monitoring Board (NCDMB) as an agency of government have recorded unparalleled achievements worthy of emulation from the period of its inauguration and now, in line with its mandate. 

 Engr Simbi Kesiye Wabote, Executive Secretary, NCDMB

Basically, the Board was established by the Nigerian Oil and Gas Industry Content Development Act signed into law on 22^nd April, 2010 by President Goodluck Ebele Jonathan. On establishment, the Board is vested with the mandate to make procedures that will guide, monitor, coordinate and implement the provisions of the NOGICD Act. The primary responsibilities of the Board include reviewing, assessing and approving Nigeria Content plans developed by Operators and set up guidelines and minimum content levels for project related activities across the oil and gas value chain.

The Board also, is saddled with the duty to engage in targeted capacity building interventions that would deepen indigenous capabilities – Human Capital Development, Infrastructure and facilities, manufactured materials and Local Supplier Development. The mandate as well empower the Board to grow and manage the Nigerian Content Development Fund; establish, maintain and operate the Joint Qualification System (NOGIC JQS) in conjunction with industry stakeholders, as well as to monitor Nigerian Content Compliance by operators and service providers. This will be in terms of cumulative spending, employment creation and sources of local goods, service and materials utilized on projects and operations.

In addition, the Board is saddled with the mandate to award Certificate of Authorization for Projects that complies with Nigerian Content provision. It is also saddled to conduct studies, research, investigation, workshops and trainings aimed at advancing the development of Nigeria Content among others.

The vision and the mission of the Board is to be the catalyst for industrialization of the Nigerian Oil and Gas Industry and its linkage sectors; and promote the development and utilization of in-country capacities for the industrialization of Nigeria through effective implementation of the Nigerian Content Act.

The Board composition was made up of a Chairman who shall be the Minister of Petroleum Resources and Executive Secretary who shall be the Secretary of the Council.

The Board has a representative each from Nigerian National Petroleum Corporation, Department of Petroleum Resources, Ministry of Petroleum Resources, Petroleum Technology Association of Nigeria, Nigeria Content Consultative Forum, Council of Registered Engineers of Nigeria and National Insurance Commission. The Board on inauguration at the rudimentary level commenced its statutory responsibilities under the leadership of its pioneer Executive Secretary, Engr. Ernest Nwapa, whose team majority are secondees from the Nigerian National Petroleum Corporation (NNPC), design strategies, procedures and tools for implementation of  the Act.

The Board began to implement capacity Development Interventions (CDIs) and compliance enforcement, including the issuance of requisite approvals and certificate, like the Nigerian Content Compliance Certificate (NCCC) and Nigeria Content Equipment Certificate (NCEC) and others, to drive data related operation. It set up the NOGIC JQS platform to manage expatriate Quota, Vessel categorization, Capacity building and similar roles. Certainly, Engr. Ernest Nwapa had successfully administered the affairs of the Board and handed over to his successor, Arc Denzel Kontebe in April, 2015 who reins for eight month as the Board Executive Secretary when his tenure was abruptly terminated.

It was during his exit that a man of impeccable character and unparalleled wealth of experience in the oil industry was appointed in the last quarter of 2016 to replace him. He is Engr. Simbi Kesiye Wabote.

Engr. Wabote, a trailblazer and pacesetter who worked with Shell Petroleum Development Company (SPDC) for over 20 year; on inception to office as Executive Secretary of the Board has actually make good things to happen in achieving the mandate of the Board.

No wonder, he was reappointed for a second term owing to the numerous indelible achievements the Board has recorded under his exemplary leadership. Like aforesaid, the mandate of NCDMB, under the leadership of Engr. Wabote, the Board has actualized the content of its mandate and is continue doing.

On commencement, he initiated and drives rapid changes. He began by resetting, simplifying and automating the internal process, and introduces business agility to propel swiftness in service delivery.

The renowned Engr. reorganized and repositions the Board for higher efficiency and productivity by automating and optimizing its processes and implementation tools within his first one year in office.

As a man endowed with rare vision, he simplifies reporting templates and shortened the turnaround time for all Board’s touch points in tendering process. He initiated the use of Service Level Agreements (SLA), way ahead of any other Federal Government agency, to ensure ease of doing business.

The Executive Secretary also developed a 10 year strategic road map, aimed to increase Nigerian Content to 70 percent by 2027, with clear performance indicators, which include the creation of 300,000 jobs, retain at least $14 billion out of annual industry spend and activate manufacturing of vital oil and gas tools and spare parts in Nigeria.

He has not only increased the momentum of local content practice, but also completely transformed the Nigeria oil and gas landscape, raising the bar of local content performance in oil and gas industry. The gesture explains the clarion call for extension of local content to other sectors of the economy.

It is enthusiastic to note that this clarion call has been picked up by the Ninth National Assembly, leading to the beginning of Legislative process for enacting another law to extend local content practice to construction, power, mines and even ICT.

Having conversant with the office he occupied, knowing it well that local content is about securing direct and indirect opportunities for employment and procurement to home nationals, at the same time as fostering the development of local skills, technology transfer, and use of local manpower and local manufacturing in capital projects, he did everything possible to achieve optimum set goals.

Commendably, Engr. Wabote Sterling leadership has made us proud in several ways, considering the Board achievements in integrating FPSOs in Nigeria, the building of 17 storey local content Tower, High Tech pipe mills, in-country pipe coating, High Quality Electrical cables, True industrialization starts with NOGAPs, $50M R &D intervention fund, $200m Nigeria Content Intervention (NCI) fund, Increase in Asset ownership, deepening human capital and catalysing businesses among others:

The NCDMB has chart a new path for economic growth and development as the enactment of the local content Act in 2010 has led to huge impact that has far-reaching effects beyond oil and gas industry and across Nigeria’s borders. In realization of its mandate the Board has work assiduously toward the realization of the transformative economic legal era in the history of Nigeria’s energy sector. It works hard to free the nation from foreign dominance of the industry’s activities that resulted in huge capital flight of about US & 380 billion and two million job losses. NCDMB has reversed the trend by ensuring that all critical services in the oil industry are handled in-country by indigenous service companies; unlike prior to the Act to where all these services were carried out by Foreign companies.

In its Magazine titled “10 Years of Local Content, the NCDMB Manager Communication, who doubles as Editor-in-Chief,  Naboth Onyesoh itemized the major achievements of the Board as follows:-

According to him, prior to the Act, most critical services in the industry were performed by foreign companies, most times overseas. Today, all these services are now handled in-country by indigenous service companies, including 80 percent of conceptual, front-end and detailed engineering as well as other high-tech service in the deep and ultra-deep offshore operations. He said another indicator is that the number of Petroleum Technology Association of Nigerian (PETAN) member-companies, being the association of leading indigenous services firms, has grown from 44, prior to the NOGICD Act, to 93 in 2020. Similarly, over 8,000 service companies are captured on NCDMB’s Joint Qualification Standards (JQS) portal, as firms that provide oil and gas related services in Nigeria and other parts of the Gulf of Guinea.

On this development, according to him, Engr. Bank-Anthony Okoroafor, immediate past Chairman of PETAN, said: “There is no area in the oil and gas value chain that you wouldn’t find competent Nigerians performing services, and you will see the number of jobs created and value of retention in-country. The journey has been fantastic.” Today, five cutting edge fabrication yards operate in Nigeria, each with capacity of about 60,000 metric tonnes per annum, in addition to several other manufacturing yards that dot the country. Local firms, like Aveon Offshore, Nigerdock, FMC and Saipem, now have the capacity to fabricate Christmas trees, topsides, subsea production systems, manifold systems, among several others. Some indigenous companies have even ventured outside the country and many others plan to leverage on the African Continental Free Trade Area (ACFTA) to launch out. Before the Act was enacted, local content in the local industry was less than five percent, but between 2010 and 2015, we moved it to about 25 percent and, today, it’s about 30 percent,” Engr. Wabote said.

Integrating FPSOs in Nigeria: Perhaps the biggest achievement is the development of the SHI-MCI Floating. Production Storage and Offloading (FPSO) integration quay and the actual partial integration of the TOTAL E&P Egina FPSO in 2018. It happened because NCDMB insisted that every big oil and gas ticket project must leave a legacy. Incidentally, the TOTAL E&P’s Egina deep water field development project was the first major project to begin after the NOGICD Act and the Board inserted in the Nigerian Content Plan that the FPSO must be integrated in-country. That singular decision compelled Samsung Heavy Industries Limited and LADOL, the FPSO lead consortium, to set up the SHI-MCI yard, the first of its kind in the Gulf of Guinea. Six of the modules of the Egina FPSO were fabricated by different companies in Nigeria, including Nigerdock, and later integrated at the SHI-MCI yard, which is now available for future FPSO construction, integration and maintenance.

Several other components of the FPSO were manufactured in Nigeria, including the Offshore Loading Terminal (OLT) Buoy, fabricated by Aveon Offshore, in Port Harcourt. Similarly, all the paints used for the FPSO were made in Nigeria and shipped to South Korea, where the primary parts of the FPSO were completed and painted before sailing back to Nigeria.

Chief Timpre Sylva, Minister of State for Petroleum Resources, said: “Egina achieved very high record levels of Nigerian Content and we are hoping that the next stop will be Bonga South West. They promised to achieve more local content participation. NLNG Train 7 will take us to another level.”

17-Storey Local Content Tower 

 

Another major achievement is the NCDMB 17-storey ultramodern office complex in Yenagoa, the Bayelsa State capital. It was executed within five years by Megastar Technical & Construction Limited, an indigenous civil construction company, using mostly materials that were sourced locally. The project generated over 250 direct and indirect jobs and created opportunities for artisanal skills development and utilisation. This complex will be supported with a 10MW independent gas-powered plant, jointly constructed by NAOC and NCDMB. The power plant would provide 24/7 electricity to the office, the oil and gas park in Bayelsa and a few other users in Yenagoa on pay-as-you-go basis.

High tech pipe mills

The establishment of two world-class pipe mills is also significant. The mills manufacturing HSAW line pipes, which are in high demand in the industry. The SCC Pipe-Mill is located in Abuja, with an installed capacity of 270,000MT per annum and the Yolong Pipe-Mill is in Lagos, with capacity to manufacture 400,000MT HSAw line pipes per annum.

In-country pipe coating

Prior to the NOGICD Act, line pipes used in Nigeria’s oil and gas industry were all imported, fully coated. Following the establishment of about five world-class pipe coating plants in Nigeria, NCDMB issued a circular in 2018 banning importation of coated pipes, which has resulted in capital retention, job creation and skill enhancement for Nigerians.

High quality electrical cables

Similarly, all electrical used in the Nigerian oil and gas industry were previously imported. This, too, has stopped. Electrical cables required, both for marine and onshore oil and gas operations, are now manufactured in-country.

True industrialisation starts with NOGaPs

Between 2012 and 2013, NCDMB started conceptualizing the oil and gas parks. The goal was to spur manufacturing of critical oil and gas tools, equipment and accessories in-country. Companies that operate from the parks will be provided with steady electricity. This is expected to significantly promote in-country manufacturing and technology transfer from original equipment manufacturers (OEMs) to their local partners.

Civil construction works have reached advanced stages in the three pilot locations – Odukpani (Cross River), Emeyal-1 (Bayelsa State) and Ikwe, Onna LGA of Akwa Ibom State. They are expected to come on stream on or before 2023, with the potential to create about 2,000 jobs each when fully operational. On May 20, 2020, the Federal Executive Council approved N2.9 billion for the provision of water and fire service equipment at the Odukpani Park, proof of government’s unflinching support for the park project.

$200m Nigerian Content Intervention (NCI) Fund

In 2017, the Board launched the $200 million NCI Fund, managed by Bank of Industry (BoI), with a view to driving down cost of funds in the industry and enhancing local supply chain efficiency and competitiveness. The NCI Fund provides low interest facility for indigenous service companies. It has been highly subscribed, with over 90 percent of the fund already accessed.

Increase in asset ownership

Before 2010, Nigerians owned less than five percent of rigs and marine vessels in the industry. This has increased to 40 percent today. Indigenous asset ownership profile of security patrol vessels (SPVs), platform supply vessels (PSVs), line handling tugs (LHTs), anchor handling tugs (AHTs), crew boats, among many others, has increased significantly through the application of marine vessel utilization procedure and provision of funding from the Nigerian Content Development Fund.

There has also been an astronomical increase in the number of rigs acquired by Nigerians since 2010, following the rigorous enforcement of the provision of the Act, which stipulates that oil and gas drilling operations on land and swamp should reserved exclusively for indigenous service companies.

$50m R&D Intervention Fund

NCDMB also developed R&D framework and launched a $50 million Nigerian Content Research and Development Fund to drive and boost the growth of indigenous technology and innovation. The Board established R&D council, comprising stakeholders from the industry, academia and R&D ecosystem. The essence of this initiative is to rekindle interest in R&D, develop and deploy home-grown solutions and lead innovation.

Deepening human capital

NCDMB has also excelled in its Human Capacity Development Initiatives (HCDIs) designed to close identified critical skills gaps in the industry, reduce reliance on expatriates, stop capital flight and create jobs for Nigerians. The Board’s HCDIs run on two tracks: the first is on the back of ongoing projects and the second is direct interventions. In 10 years, NCDMB has successfully achieved over nine million training man-hours for Nigerian youths. Through direct interventions and strategic partnerships, NCDMB has generated over 198,000 direct and indirect jobs for Nigerians.

The Board collaborates with industry stakeholders to address identified critical skills gap. For example, in conjunction with Charkins Maritime & Offshore Services, the Board sponsored the training of 20 Nigerians as marine cadets for 12 months in the United States of America, Austria, Singapore, Malaysia and China, giving them international sea-time experience required for qualification to man vessels. The goal is to reduce reliance on foreign marine cadets. Plan is afoot to sponsor another set of 40 marine cadets next year to gain international sea time experience.

Similarly, the Board partnered with AOS

 

 

Orwell to train 50 young Nigerians in smart electrical engineering at the Lagos Energy Academy and ensured that most of the trainees were employed. Since 2017, NCDMB has been operating the 60:20:20 training model, which implies that 60 percent of trainings the Board provides is for specialised skills in critical demand by the industry; 20 percent for skills enrichment while 20 percent is for essential skills. By so doing, the Board ensures that at least 60 percent of people trained under its HCD intervention is guaranteed instant employment upon completion of the training.

Catalysing businesses

NCDMB also stands very tall in catalysing oil and gas investments. With the outbreak of COVID-19 and associated lockdowns, the Board rolled out a number of incentives and stimulus packages to engender resilience and business continuity for service companies. The objective of the stimulus package is to prevent job losses and mitigate the impact of COVID-19 pandemic on local businesses.

NCDMB also came up with the Nigerian Oil and Gas Opportunity Fair (NOGOF). The second edition was held in 2019, culminating in the publication of a compendium of oil and gas opportunities in Nigeria, with a five-year outlook.

 

In line with its catalytic role and desire to promote effective resource utilisation, NCDMB took equity investment in Waltersmith and Azikel refineries with a clear exit strategy. The Waltersmith Modular Refinery is planned to come on stream before the end of 2020.

The Board has also entered into other similar investments: with Rungas for the establishment of LPG cylinder manufacturing in Polaku, near Yenagoa; with Chimons Gas Limited for the establishment of a 168,000 MT/per annum LGP loading and offloading terminal in Koko, Delta State and with Bunorr Integrated Energy Limited, for the establishment of a 48,000 litres/day plant in Port Harcourt for the production of base oil.

The Board also launched a revised and simplified Nigerian Content Reporting template and executed Service Level Agreements (SLAs) with NLNG, OPTS and IPPG.

Garlands @

There is a consensus among industry stakeholders that the first 10 years of Nigerian Content Act have been a resounding success. Thus, in faraway Cape Town at the 2018 African Oil Week, Engr. Simbi Wabote was decorated with a global local content award for exemplary local content leadership. At the award ceremony, there were profuse testimonies about the pragmatic approach of Nigeria’s local content enforcement and that it is worthy of emulation by other nascent oil and gas provinces.

 In 2019, NCDMB again won the BusinessDay Award of the Most Transformational Government Agency of the Year, recognizing the Board’s Innovative Programmes and processes for enabling business.

On the catalytic role of NCDMB in the establishment of the FPSO integration facility in Nigeria, Dr. Amy Jadesimi, Managing Director, Lagos Deep Offshore Logistics Base (LADOL), said: “It’s been a triumph for local content. We have created 3,000 jobs so far. Going forward, we expect to create 50,000 jobs directly or indirectly due to the multiplier effect of what we do at LADOL.”

Mr. Tein George, Chairman, Aveon Offshore, sums it up when he asserts that Nigerian Content Act is the pride of Africa. “We have, perhaps, the most certain local content regulations in Africa. The laws are very clear. The Board has done an outstanding job; it has enforced the law, been pragmatic, fair and reasonable,” he says.

The success of Nigeria’s local content practice in the oil and gas industry is acknowledged across the African continent. This is why several oil and gas producing countries, including Ghana, Uganda, Kenya, Gabon, Equatorial Guinea, Niger Republic, and Congo Brazzaville, have continued to engage NCDMB for guidance on developing similar policies in their markets.

Enthused with the successes of local content practice in Nigeria, Engr. Ernest Nwapa, pioneer Executive Secretary of NCDMB, said: “Looking at the strides of Nigerian Content, I see the beginning, I see where I dropped off and where we are today. I see a trajectory that is smooth and close to the vision and that makes me happy.”

The journey to the top is fraught with difficulty, but the greatest difficulty lies in maintaining one’s place at the top. There is no doubt that NCDMB has earned its way to the top within 10 years. To continue the upswing, the Board is relentlessly pursuing a 10-year strategic roadmap, which effectively started in 2017. The roadmap has five (5) strategic pillars and four (4) enablers. The pillars are: Technical Capability Development, Compliance and Enforcement, Enabling Business Environment, Organizational Capability and Sectorial/Regional Market Linkages. The four enablers to the roadmap are: Funding, Regulatory Environment, Collaboration and Stakeholders’ Engagement, Research and Development (R&D).

Under this strategic roadmap, the Board aims to grow local content from the current 30 percent to 70 percent in 2027, retain $14 billion from annual industry spend, generate 300,00 jobs, spur in-country manufacturing and create access to regional market for excess capacities built in Nigeria.

Granted that much has been achieved in the past years, the Board is still poised to achieve even greater feats in the coming years. NCDMB is upbeat and determined to do greater exploits for Nigerians.

Like the indomitable traveller in Alfred Lord Tennyson’s Ulysses, NCDMB is “strong in will” and determined “to strive, to seek, to find, and not to yield” any ground in its quest and vision to be the catalyst for the industrialization of Nigeria’s oil and gas industry and its linkage sectors,”

The NCDMB Manager stated.