BY PROVIDENCE OBUH

The Nigerian Content Development and Monitoring Board (NCDMB) has expressed concern over the decaying pipeline network in the country and has  proposed its renewal in the coming five years (2017).

Executive Secretary/CEO of the Board, Mr. Ernest Nwapa, who stated this during a meeting with the Oxford Business Group (OBG), a global publishing, research and consultancy firm, said “Nigeria’s 5000-km pipeline network is largely dilapidated and in need of renewal in the next five years, adding that the gas plan will create demand for another 2000km of pipeline.

“We are actively encouraging the expansion of existing pipe-mill capacity as well as attracting Greenfield investments.”
He revealed that boosting pipe-mill capacity was one of the NCDMB’s priorities for  increasing the oil and gas industry’s contribution to economic growth.

He told the group that Nigeria is planning to set up its own pipeline industry to boost domestic employment as well as to enhance GDP.  “The Board is also spearheading the country’s bid to bring more of the local population into the industry and build domestic capacity in line with the terms of the Nigerian Content Act (NCA), which became law in 2010.

“I believe it is high time Nigeria build its own dry dock, given the recent increase in the country’s fleet, coupled with growing demand around the world for shipyard space. Vessel ownership is increasingly in Nigerian hands, both through Nigeria Liquefied Natural Gas’s fleet and the Vessel Replacement Strategy, providing the critical base for the establishment of local assembly, maintenance and repair activities. It would also feed into the global demand for dry-dock space, which suffers from frequent shortages.”

As the April 2013-deadline for compliance draws closer, he explained that the Board’s efforts to bring original equipment manufacturers into the country were already achieving success, stating that the NCDMB has set out penalties for companies failing to meet targets and timelines in the first evaluation round.

“Nigeria will not be able to localise the entire supply chain within three years or in various cases, within any given timeframe. NCA is not set up to defeat the theory of comparative advantage or to defy the principles of free trade. When the date comes, we will evaluate how far we have progressed and the contributions of individual players. We have made good progress on our initial three-year goals. Moreover, we have been successful at changing the mindset of people on local content,” he said.