We Have Provided Opportunities For Investors: Simbi Wabote

 

The Executive Secretary, Nigeria Content Development and Development Board (NCDMB) Engineer Simbi Wabote has disclossed that  the board has provided opportunities for foreign and local investors to build synergies in the Nigerian oil and gas industry.

Speaking on Thursday in Yenagoa at the 4th edition of the Nigerian Oil and Gas Opportunity Fair (NOGOF) 2023, the execution secretary who said the  role expected of the oil and gas industry has been dwindling due to missed opportunities as a result of policy inconsistencies, deferred decisions and investments apathy  stated that the board has also provided the stakeholders with information on upcoming projects to enable Nigerian companies/manufacturers tailor their business development strategies and identify high impact activities with potential for in-country value addition with a 5-year outlook to deepen the practice of Nigerian Content.

With the theme of this year’s NOGOF  which is  Oil & Gas Industry - Catalyst and Fuel for the Industrialization of Nigeria, the ES said that the  theme reflects the pivotal role that the oil and gas industry is expected to play in driving the economic growth and development of Nigeria.

He said" NCDMB Provides  Nigerian companies and prospective investors an opportunity to showcase their capabilities. Provide stakeholders with information on upcoming projects to enable Nigerian companies/manufacturers tailor their business development strategies,

Identify high impact activities with potential for in-country value addition with a 5-year outlook to deepen the practice of Nigerian Content and to

showcase opportunities in the Upstream, Midstream and Downstream sectors of the Petroleum Industry.

" Over the period, the growth of the nation’s GDP has been marginal, but the reality is that we need to drive the growth rate to double digits for us to achieve the level of economic advancement and development that we desire.

"The NBS report noted that the total annual contribution of oil to aggregate GDP in 2022 was 5.67% compared to 7.24% in 2021.

"The oil sector has steadily dropped behind Agriculture, Trade, Telecommunications/ICT, and Real Estate in terms of sectors that contributed the most to Nigeria’s GDP.

These are signs of a dying sector, and we must all join hands to stop the decline so that we can return oil and gas contribution to GDP to double digits levels similar to other major oil producing countries.

"It is my belief that the oil and gas sector can serve as the catalyst that will enable us to achieve the desired double-digit GDP growth rate if we are bold and disruptive in our strategy.

One probable means through which double-digit GDP growth can be achieved is by harnessing the array of opportunities that exists in various categories enabled by the oil and gas industry.

"Beyond the core oil and gas activities related to exploration and production, there are several related activities enable by our industry such as security, insurance, medicals, ICT, legal services, aviation, catering, and several others.

"Opportunities driven by policies, guidelines, regulations, and statutes are attractive to investors as there is clarity on the framework governing their business endeavours. Several policies have been formulated and implemented by the government in their quest to stimulate economic growth and development.

"Other policies such as the automotive gas policy advocates for the use of CNG as an alternative fuel for vehicles and this has also created a vista of opportunities in the supply and installation of conversion kits in vehicles to enable it use of CNG.

"These policy initiatives have led to creation of several businesses and a surge in local utilisation of gas. For example, the annual consumption of LPG increased from 360,000tonnes in 2015 to 1.4million tonnes in 2022.

"While this growth is commendable, it is instructive to note that about half of the local LPG requirement is imported. In addition, the consumption level is still far below the 4million tonnes consumption by the year 2025 as targeted by the National Gas Expansion Programme.

"The Nigerian Gas Flare Commercialisation Programme (NGFCP) is another policy that is aimed at promoting the development and utilization of gas. It also focuses on reducing greenhouse gas emissions in line with global efforts which are aimed at addressing climate change.

"The key thing to note here is that every policy, regulation, or statute holds an array of opportunities that can be harnessed and utilized to achieve significant benefits.

"The Petroleum Industry Act (PIA) 2021, is one of the most audacious attempts that have been made to overhaul our petroleum sector.

The Act has now provided investors with more clarity on the business environment, and it is expected that the 2-year-old PIA will soon start to yield the desired results.

"There are huge opportunities for individuals and businesses willing develop the skill sets required to offer regulatory compliance support services to operators and service companies.

"We have provided train-the-trainers programs across the country, delivered over 13 million man-hours in On-the-Job training covering sea-time for marine cadets, non-destructive testing, equipping youths in new skill sets such as GSM repair, solar power installation, and provision of entrepreneurial exposure that will ensure sustainability.

"We have introduced and widened the options for accessing interventions even further with our $300 million Nigerian Content Intervention Fund with BOI, our $50 million Nigerian Content R&D Fund, and our $50 million NOGaPS Manufacturing Fund.

Over 70 companies have so far benefited from the intervention funds for asset acquisition, manufacturing, loan refinancing, and project financing.