Nigeria's participation in the manufacturing segment of the oil and gas industry still stands at a 35 per cent low despite efforts by government. Executive Secretary, Nigeria Content Development Board (NCDB), Engr. Ernest Nwapa, said.
Nwapa last week said that the segment is dominated by foreign counterparts, which brings little benefits to Nigerians.
Nigeria's participation in the manufacturing segment of the oil and gas industry still stands at a 35 per cent low despite efforts by government. Executive Secretary, Nigeria Content Development Board (NCDB), Engr. Ernest Nwapa, said.
Nwapa last week said that the segment is dominated by foreign counterparts, which brings little benefits to Nigerians.
"Our partial Nigeria content is at 70 to 87% while our real content, which is based on proportion of contract sums spent on Nigerian made good is 12 to 18%," he said in an address at the just concluded Nigeria Oil and Gas conference in Abuja yesterday.
"This is considerably very low, and it is a major factor to lack of investment opportunities, underdevelopment and unemployment. We have decided to neglect human capacity development which is essential to the development of the sector, and we have focused on revenue derived. Presently, we still seek foreign partners in rebuilding our refineries," Nwapa said.
He added that it is now compulsory for foreign and local investors interested in establishing business places in Nigeria to patronize local industries.
Engr. Nwapa said the content act is not meant to drive out foreign investors as misconstrued by some of them, but that the law was aimed at better collaboration.
He said what makes a great oil producing nation is the ability to manufacture all necessary equipment needed, asset ownership and human capital development, adding that there is a need to create a skilled workforce by building more capacity and engaging Nigerians in the workforce, thereby creating more jobs.
Speaking on manpower retention, Engr. Nwapa maintained that growing a number of new employees and new entrants into the industry is also a statistics that NCDB is watching very closely. "I can tell you that there is a continuous threat to lay off people. If jobs are not coming out. If companies are not getting new contracts then the threat of laying off capacity is always there.
"Our objective is to create the platform for people to create jobs through innovative works and that is happening because we are delving into manufacturing, fabrication, not just providing oil and gas services and in that way we have over 10 per cent growth rate in the number of jobs. "
He also pointed out that though contracting cycle is not as short as the industry wanted it to be but progressive efforts are on with all the stakeholders to shorten the process. "But also Nigerians bid for everything they see; many Nigerians who don't have capacity in certain zones apply. When you see an invitation to tender everybody just applies as if it's a scholarship they are applying for. It takes time to do the due process and eliminate people who are not qualified," he said.
Discussion about this post