NCDMB stresses African Local Content collaboration, decries fragmented implementation
The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Felix Omatsola Ogbe, has charged sub-Saharan African nations to keep pace with unfolding trends in the global oil and gas industry and adopt a unified approach in strengthening local content development, advancing industrialization and fostering sustainable continent-wide economic growth.
In a Keynote Address at the 9thSub-Saharan African International Petroleum Exhibition and Conference (SAIPEC), in Lagos, on Tuesday, Engr. Ogbe said nations like Nigeria, Angola, and Ghana have made notable strides in local content development by boosting indigenous participation in the oil and gas sector, but expressed regret that “fragmented implementation continues to hinder collective progress.”
He called for a collaborative strategy among petroleum-producing nations in sub-Saharan Africa that would foster the sharing of best practices and enhance cross-border partnerships that could drive the competiveness of indigenous players.
In his paper entitled “Sub-Saharan Africa Local Content Collaboration Strategy,” Engr. Ogbe identified harmonization of local content policies, human capital development, investment in infrastructure, funding for local companies and technology transfer, as key pillars to Africa’s collaboration strategy.
He noted that “there is a need to develop a robust local content framework that positions the region for long-term economic prosperity,” and that this could be fostered “through the collaborative efforts of APPO [African Petroleum Producers Organization] and the United Nations Economic Commission for Africa and the African Union.”
Engr. Ogbe also highlighted the importance of the African Continental Free Trade Agreement (AfCFTA) as a critical legal framework that could be leveraged to achieve collaborative local content strategy in Africa, given the free trade area it has created by integrating 1.3 billion people across 54 African countries with a combined gross domestic product of over $3 trillion.
On human capital development, which he described as “pivotal to the successful implementation of local content,” he observed that approximately 60% of Africa’s population is currently under the age of 25, and that this teeming population provides a unique opportunity to fast-track development. “A large, young workforce,” he noted, “can drive expansion through increased productivity and expansion.”
The NCDMB boss dwelt at length on how investment in infrastructure could catalyze regional economic growth, citing the 650,000-barrel-per-day Dangote Integrated Refinery and Petrochemical Company, which he noted would afford Nigeria and other African countries partnership opportunities for sourcing petroleum products and fertilizer.
Similar projects capable of leveraging collaborations include Kenya’s Konza Technology City, Grand Ethiopian Dam, Lekki Free Trade Zone (Lagos), and facilities like the SHI-MCI FPSO Fabrication/Integration Yard in Lagos. Others highlighted by the Executive Secretary were NCDMB’s Nigerian Oil and Gas Parks Scheme (NOGAPS) being developed in seven locations in Nigeria, to which he invited interested businessmen and investors seeking to manufacture industry-related equipment, components and spares to apply.
Speaking on funding, Engr. Ogbe said “A regional fund or financial framework that provides credit facilities, guarantees, and investment incentives would strengthen indigenous firms,” noting with satisfaction that an African Energy Bank, established by APPO with the support of the NCDMB, which has taken equity investment in it, is soon to be operational.
In regard to technology transfer and innovation, he pointed out that “Encouraging joint ventures, research collaborations, and technology-sharing agreements among African nations will drive the adoption of cutting-edge solutions and indigenous technological advancements in the African economy.”
The overall strategy discussed by Engr. Ogbe envisages roles for the academia and research institutions, which must collaborate on industry-driven research, innovations, and skills development. In his words, “By working together, we can create a formidable and self-reliant petroleum sector that delivers long-term benefits for our economies, businesses, and people.”
Earlier on Monday, in a Pre-Event Session, the Director, Monitoring and Evaluation of the NCDMB, Mr. Abdulmalik Halilu, delivered a paper on “Optimization of Developed Capacities and Capabilities in Africa for the Growth of African Oil and Gas Industry.”
In the presentation, with illustration from Africa’s Hydrocarbon Map, he discussed Local Content Value Proposition for Africa, Concepts, and Way Forward. Under Local Content Value Proposition, he highlighted research and technology development, local employment, strategic partnerships, ownership and control of assets, while Supply Chain Optimization threw light on sustainable operations, increased production and utilization of locally made goods, and contribution to GDP.
Under Way Forward for Sector-Specific Industrialization, Mr. Halilu charged petroleum-producing countries to “identify and develop niche industries, promote specialization and value addition, establish export-oriented economic zones.” For trade and regional integration under AfCFTA, his suggestion was, “Harmonize trade policies and regulations, develop efficient transport and logistics networks, export expansion grant to companies promoting intra-Africa trade.”
