NCDMB saves Nigeria $2bn on NLNG-7 project

• Wabote receives African Icon award

Sopuruchi Onwuka

Localization of contract execution in the ongoing expansion of the processing trains of the Nigeria Liquefied Natural Gas (NLNG) Limited saved Nigeria princely $2.0 billion of N840 billion during the during the bidding process.

The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Kesiye Wabote, stated that the amount was saved by ensuring that the execution of the big ticket jobs in the project is carried out in-country.

Engr. Wabote spoke in Yenegoa, Bayelsa State, while receiving the Africa Local Content Icon Award presented to him by the African Leadership Magazine.

The amount saved by prioritizing local content in the NLNG-7 project, he pointed out, is just an example of the numerous and various benefits of domiciling industry jobs for local execution and also using the huge petroleum industry budgets to drive domestic productivity and economic growth.

He stated that the Nigerian oil and gas industry had experienced phenomenal transformation in the past 11 years. He noted that in-country value created in the oil and gas industry has grown from less than 3.0 percent prior to the enactment of the Nigerian Oil and Gas Industry Content Development Act in 2010.

“Everything in relation to the industry, including simple things as conceptual design was done outside; and the in-country value was next to nothing,” he recalled.

Emphasizing the gains of Local Content, Engr. Wabote declared that using local manpower and material resources was a perfect strategy for cutting down the costs of projects.

He cited an example with the 17-storey Nigerian Content Headquarters Building which was built by a community contractor, clarifying that the cost would have been significantly higher if it was executed by a multinational contractor.

He also pointed at the ongoing Train 7 project of the NLNG Limited as another good example of maximizing local content for optimal economic benefits if the country. He made it clear that the Engineering Procurement and Construction (EPC) scopes of the project would have cost additional $2.0 billion if the contract was executed outside the country.

“The difference in the bid between a company that had established itself in Nigeria and another company that came from Europe was $2bn,” he disclosed.

In noting that Nigeria has provided a credible local content model for the African continent, Engr Wabote expressed delight at the prevailing collaboration among the countries.

According to him, ”the realm of Local Content coverage is fast expanding to other sectors of the economy. You do not have to be an oil producing country to practice Local Content.”

He also pointed out that global shutdown associated with the COVID-19 pandemic has shown the strategic economic and security importance of building local capacity for job execution, adding that “local content is not a fancy policy to be considered as a sideline of national discourse.”

In receiving the award, Engr Wabote said that he became aware of his nomination for the prestigious award after voting had started across the globe. He thanked the African Leadership Magazine for the recognition, adding that it justified the NCDMB’s dedication to local content within Nigeria and the continent.

 “The award highlights the importance of Local Content across Africa and the globe. It shows that our sweat has not been in vainas we continue to propagate local content within Africa and beyond,” he added.

Engr Wanbote thanked President Muhammadu Buhari for providing him the platform to drive implementation of the local content policy in the public sector. He also and acknowledged the support he receives from the Minister of State for Petroleum Resources, Chief Timipre Sylva and the staff of the agency, describing it as tremendous.

In his remarks, the Group Managing Editor, African Leadership Magazine, Mr. Kingsley Okeke, described Africa as a continent with a huge potential for commerce beyond what is being reported in the internal media, stressing that the magazine tells the story of positive developments in Africa.

Also speaking, a member of the African Leadership Magazine delegation and President-Elect, National Black Caucus of State Legislators, United States, Hon. Laura Hall commended Engr Wabote for his giant strides in promoting local content in Africa and expressed the desire of the magazine to collaborate with the agency in different areas.