By Yemie Adeoye
THE Federal Government has announced that the recently passed Nigerian Content Development NCD Act would bring about an over 50  70 percent Capture of Banking services, Insurance risk placements, and Legal services supporting industry activities and transactions.

Aside from this the Act which is also expected to take its toll on the maritime and other oil related sector would bring about the transformation of ownership profile of marine assets that supports industry activities from a current ratio of 20 Nigerian-owned vessels- 280 Foreign-owned vessels to a more equitable ratio of 180 (Nigerian):120 (Foreign).

These were the words of the Honourable Minister of Petroleum Resources Mrs Diezani Alison-Madueke during the inauguration of the Governing Council of the Nigerian Content Development and Monitoring Board (NCDMB) in Abuja recently.

According to her the NCDMB is the sole authority established by the Nigerian Oil and Gas Industry Content Development (NOGICD) Act to superintend over the implementation of Nigerian Content Development in the Oil and Gas industry.

“This major piece of legislation came into effect on 22 April 2010 when it was signed into law by His Excellency, Dr. Goodluck Ebele Jonathan (GCFR).
Your Excellency, to put the significance of the enactment of this Act into proper perspective, permit me to inform this gathering that if it’s provisions are steadfastly implemented and that is our definitive intent,, we shall achieve the following milestones with attendant impacts on our National economic development  within the next 4 years; retention of over $10 billion out of an average annual Oil & Gas Industry expenditure of $20 billion in the Nigerian economy compared to the current sum of less than $4 billion, Creation of over 30,000 direct employment and training opportunities considering the scale of activities to be domiciled in Nigeria,

Establishment of 3 to 4 new pipe mills to service the demands of the industry and other ancillary manufacturing plants for coatings, valves, fittings & components, Development of 1 or 2 dockyards and increased utilization of existing shipyards for maintaining marine vessels operating in Nigeria which currently sail out for their maintenance and dry docking, Transformation of ownership profile of marine assets supporting industry activities from a current ratio of 20 Nigerian-owned vessels 280 Foreign-owned vessels to a more equitable ratio of 180 (Nigerian):120

(Foreign),Integration of indigenes and businesses residing in the Oil producing areas into the mainstream of industry economic activity.

Your Excellency, you may recall that the Nigerian National Petroleum Corporation had been pursuing a policy-based domiciliation model of Nigerian Content implementation in the Oil and Gas industry since 2005.

It was therefore expedient to build on the already established structures to ensure a seamless transition into the legislative driven implementation framework to be anchored by the new NCDMB.

Consequently, on the 28 of April 2010, exactly six days after enactment, the Act was unveiled to key stakeholders in the Oil and Gas industry, top government officials and members of the National Assembly in a symbolic ceremony to flag-off the formal implementation of the Act’s provisions.

Your Excellency, in the period of four months that have elapsed since the unveiling ceremony, I am pleased to report that there has been measurable and positive impact on the industry landscape.

Early performance indicators validate the conviction of Your Excellency  that a law to guide Local content implementation will focus the industry on the strategic imperatives of building local capacity and capabilities to support industry operations in Nigeria, promote employment of our youth and increase the contributions of the sector to our national GDP.”The Minister further listed some of the steps taken and outcomes witnessed so far as,

“The setting up of an organizational structure of the NCDMB to the extent possible with the level of funding currently available to the Board, A six week retreat by an interim implementation committee drawn from a wide industry cross-section brainstormed on the Act’s provisions to promote a common understanding of the provisions and identify sections that need regulations for effective implementation.

The Head Quarters of the board has been set up in Yenagoa, Bayelsa state in accordance with the provisions of the law and the Board’s operations from that location are ramping up progressively.

The process of supplementary appropriation to provide funds required by the Board to perform its statutory functions is progressing and we hope that with Your Excellency’s kind approval, the board will be sufficiently funded by the last quarter of the year.

The Board has held comprehensive engagements with various industry stakeholders.
including the International Oil Companies, Indigenous Operators, Multinational and Local Service Companies, Business and Professional Groupings in the Nigerian Content Consultative Forum, Community groups in the Oil Producing Areas, Regulatory Agencies and other MDAs.

Enlightenment programs for awareness have started with mass media activity, but will migrate in phases to the grass roots.

Towards this end, an enlightenment committee comprising of state ministries of information and the Board’s resources has been put together to pilot this effort for maximum penetration.

Studies are being commissioned to identify priority areas for capacity building and the Board is promoting industry collaboration for the implementation of identified interventions”. She enthused.