How shortened contracting cycle is fostering increased investments in oil sector — NCDMB
The Nigerian Content Development and Monitoring Board (NCDMB) has disclosed that the shortened contracting cycle for projects in the oil industry to six months is fostering increased investments.
Recall that President Tinubu issued three Presidential Directives which became effective from February 28, 2024. The orders which include: Oil and Gas Companies (Tax Incentives, Exemption, Remission, etc.) Order, 2024; Presidential Directive on Local Content Compliance Requirements, 2024; and the Presidential Directive on Reduction of Petroleum Sector Contracting Costs and Timelines are aimed at improving ease of doing business.
Speaking at a breakfast meeting with media executives in Lagos, Executive Secretary of NCDMB, Engr. Felix Omatsola Ogbe noted that the implementation of the Presidential Directives had eliminated middlemen from the oil and gas industry value chain and contributed to shortening the oil industry contracting cycle to six months.
He confirmed that NCDMB had complied fully with the Presidential Directive on Local Content Compliance Requirements, 2024 (EO 41), which sought to ensure that only local service companies that have domiciled proven capacities and capabilities can participate in oil and gas tenders.
He also indicated that NCDMB has reduced its touch points and fast-tracked project approval processes, in compliance with the Presidential Directive on Reduction of Petroleum Sector Contracting Costs and Timelines, 2024 (EO 42).
The Presidential Directives and the Board’s compliance are geared to attract new international and local investments, encourage speedy development of oil and gas projects and improve the Nigerian economy.
The Executive Secretary hinted on plans to launch a major initiative tagged “Back to the creeks.” This policy will take the impact and contribution of local content implementation to oil producing communities and other hinterlands across the country.
This is as the agency also revealed ongoing plans to review the enabling act of the NCDMB, the NOGICD act 2010 at the national assembly to extend local content implementation to other critical sectors of the economy.
Lending his voice to the gains of the implementation of the Presidential Directives, the Director Projects Certification and Authorization at NCDMB, Engr. Abayomi Bamidele highlighted the increased number of projects approved by the Board since it started implementing the Presidential Directive on Local Content.
He added that the Board was equally supporting companies seeking to fastrack gas investments to take advantage of the Presidential Directive on Tax Incentives, Exemptions and Remissions for the Oil and Gas Companies
On the Board’s strategies for enabling growth of the industry, Ogbe stated that NCDMB was working intently to create an enabling environment for international oil companies to take final investment decisions for new projects and was evolving policies to support indigenous oil and gas service companies.
Responding to a question on insurance, the NCDMB boss promised to revive the insurance services guidelines the Board signed in June 2022 with the National Insurance Commission (NIACOM), which would oblige the Nigerian oil and gas industry to patronise the local insurance sector.
He acknowledged that the success of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act and the Nigerian Content 10-year strategic roadmap depends largely on public communication, awareness and support from key oil and gas stakeholders.
He also appreciated the media for projecting the activities and programmes of the Board and assured that cooperation with the media would be deepened under his leadership as the Executive Secretary.
