Senate Committee Teams Up with NCDMB in Maiden Meeting to Bolster Local Content Implementation
In a landmark event, the Senate Committee on Local Content convened its inaugural session with the leadership of the Nigerian Content Development and Monitoring Board (NCDMB) at the Senate Building in Abuja on Wednesday.
The gathering marked a pivotal step towards fostering collaboration to strengthen the implementation of local content directives within the oil and gas industry and its allied sectors.
Chaired by Senator Natasha Akpoti-Uduaghan, the Committee steered discussions aimed at forging a symbiotic relationship with the NCDMB, affirming its commitment to working in tandem with the Board and other affiliated entities to ensure the effective execution of the Board’s mandates for the betterment of Nigerians.
Expressing apprehension over the nation’s economic challenges, particularly the escalating unemployment rates contributing to heightened criminal activities, Senator Akpoti-Uduaghan underscored the imperative to deepen the implementation of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act. She emphasized the Act’s potential to generate employment opportunities within the oil sector and catalyze growth across other segments of the economy.
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During the session, Senator Akpoti-Uduaghan solicited comprehensive performance reports from the NCDMB, specifically focusing on third-party investments, capacity-building initiatives, expatriate quota management, and research and development endeavors. Additionally, she urged the Board to identify sections of the NOGICD Act necessitating amendments by the National Assembly.
The Committee scrutinized the status of the Nigerian Content Development Fund (NCDF) and evaluated the efficacy of the Nigerian Content Intervention Fund (NCI Fund).
Criticizing international oil companies (IOCs) operating in Nigeria for their purported neglect of investments in petrochemical and related manufacturing sectors, Senator Akpoti-Uduaghan announced plans to summon IOCs and pertinent government agencies to compel tangible contributions to the Nigerian economy beyond crude oil extraction.
In response, Executive Secretary of the NCDMB, Engr. Felix Omatsola Ogbe, commended the Committee for its collaborative stance and pledged the Board’s full cooperation in achieving shared objectives. He provided insights into the Board’s performance, citing a 54% Nigerian content level for 2022 and 2023, with plans underway to achieve the targeted 70% by 2027 as outlined in the Nigerian Content roadmap.
Addressing concerns regarding the operating models of IOCs in Nigeria, Ogbe elucidated on the presence of downstream subsidiaries involved in such investments, highlighting the Board’s readiness to support indigenous firms interested in similar ventures.
Furthermore, Dr. Obinna Ofili, Director of Finance and Personnel Management at NCDMB, offered clarity on the NCI Fund and NCDF, detailing their management and disbursement mechanisms. Notably, he underscored the success of the NCI Fund, citing prudent management and diligent project monitoring as key factors driving its effectiveness.
Amid discussions on potential amendments to the NOGICD Act, Mr. Abdulmalik Halilu, Director of Monitoring and Evaluation at NCDMB, outlined concerted efforts to review legislative frameworks, affirming the Board’s commitment to submitting relevant recommendations for further deliberation.
The collaborative tone set during this inaugural meeting between the Senate Committee and NCDMB signals a concerted effort to enhance local content implementation and bolster Nigeria’s economic resilience in the face of prevailing challenges
