The Nigerian Content Development and Monitoring Board, NCDMB, has stated the imperatives of the Nigeria Oil and Gas Industry Content, NOGIC, Act and the problems faced in capacity development of Nigerians.

The board also noted that the enactment of the NOGIC Act and the establishment of the NCDMB are major milestones in the Nigeria Content initiative.

The Executive Secretary, NCDMB, Mr. Earnest Nwapa, who disclosed this at a media forum in Lagos recently, said that the Act provides for minimum thresholds on Nigeria Content across ending speculations about the policy intentions in this regard.

Elaborating on the imperatives, Nwapa, who was represented by a General Manager of the Board, Mr. Wole Akinyosoye, said that “The Act institutes clear reporting process and procedures on tenders, contracting and operations as regards Nigeria content. Generally the Law is a clear attestation to the intention of government to promote Nigerian interests and local participation in all facets of the industry.”

He stated that “the Act mandates that first consideration should be given to Nigeria independent operators on block awards, oil field licenses, oil-lifting licenses and other industry projects,” adding that the Act grants exclusive consideration in traditional areas to indigenous service providers that can demonstrate ownership of equipment, Nigeria personnel base and capacity to work in the area.

Nwapa enthused that the Act further provides framework to harness in-country capabilities and build new capacities to attain the maximum thresholds specified by the schedules within the shortest time possible.”

Speaking further at the forum, Nwapa asserted that the main challenge of implementation in the face of set targets of the law is to effectively regulate activities to ensure that available skills and facilities for capacity building are harness efficiently. Adding that the responsibility of the board is to ensure that new capacities are built as soon as possible where expectations of the law cannot be met immediately.

He however noted that NCDMB must always manage projects opportunities to bridge capacity gaps through encouraging ownership of equipment and facilities and building the local skill competency base.

Nwapa therefore explained that Government was guided by the global best practices in fashioning out the NOGIC Act in 2010, adding that “the experiences of Malaysia, Norway and Brazil had thought a nation not to wait till all required skills and facilities are ready before making a local content policy.

Oftentimes, the realities are that shortages of capacities are reasons for low national participation; a policy therefore is a vital tool to foster capacity development and stimulate growth in the right direction.”