At NOG: NCDMB Declares Zero Tolerance For Firms Lacking Project Execution Capacity
In a move to ensure the success of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, the Nigerian Content Development and Monitoring Board (NCDMB) has declared zero tolerance for firms lacking the capacity to execute projects in the industry
The executive secretary, Nigerian Content Development and Monitoring Board (NCDMB) Felix Omatshola Ogbe, said entities acting solely as intermediaries, with no demonstrable capacity to execute any project or activity, would be excluded from the Nigerian local content plan.
Speaking at the Nigerian Oil and Gas (NOG) Energy Week 2024 in Abuja on Monday with the theme, “Showcasing opportunities, driving investment and meeting energy demand,” Ogbe said the move became imperative following the earlier directive by President Bola Tinubu to encourage local content agenda and protect their rights while developing the sector to harness its full potential.
The Presidential Directive seeks to further deepen local content in the Nigerian oil and gas industry while enhancing competitiveness, mitigating risks of approving unqualified contractors, improving the approval timeline, creating an enabling business environment in the Nigerian oil and gas industry.
Among other obligations, the Board is required to establish procedures for its execution in accordance with the Presidential Directive.
Speaking on the development, Ogbe said the Board has designated five focal areas for implementing the Presidential Directive
The areas, according to Ogbe, include promoting the utilisation and growth of in-country capacities.
To achieve this, he said the Board would leverage existing processes to assess and verify the capacity of companies, facilitate and carry out in-country capacity audits in collaboration with all relevant stakeholders.
He also explained that the Board will be enhancing the cost competitiveness of oil and gas projects. This area, he added, will include allocating permission to operators to source capacities out-of-country only after in-country capacity gaps have been identified.
He said, “The Approval of Nigerian Content Plan (NCP), which consists of contractors that meet the legal definition of Nigerian companies and demonstrate capacity to execute projects within Nigeria. The Board will only acknowledge the necessity of international players’ participation when the necessary Nigerian Content level is unavailable locally or insufficient.
“Entities acting solely as intermediaries, with no demonstrable capacity to execute the project or activity, shall not be approved.”
Ogbe noted that the Board is steadfast in its dedication to guaranteeing that any services provided will generate value in the country.
He assured that the Board will evaluate current policies and guidelines to encourage the development of indigenous capabilities and guarantee that these policies and guidelines are not misused, misapplied, or misinterpreted.
