Dr. Ibe Kachikwu, the minister of state for petroleum resources and group managing director of the Nigerian National Petroleum Corporation (NNPC), has assured local service providers and prospective investors in the oil and gas industry of the federal government’s commitment towards implementing the local content policy.
Kachikwu who stated this at the 2016 Nigerian Content Investment Forum in the Houstonian Hotel, Houston Texas, put together by Sweetcrude Reports in collaboration with Nigerian Content Development and Monitoring Board, NCDMB, said in addition to implementing local content policy, government will continue to provide the enabling environment required to nurture businesses and investment towards creating a robust supply chain.
Kachikwu who was represented by the acting executive secretary of NCDMB, Mr. Daziba Patrick Obah, said despite falling crude oil price, local content policy will be implemented.
Addressing Nigeria’s Small Medium Enterprises, SMEs and Houston’s Original Equipment Manufacturers, OEMs at the event, the minister said specific areas of focus for local content development include, infrastructure development, fiscal incentives, funding, addressing long contracting cycle, and in-country processing of hydrocarbon resources.
“We will accelerate implementation of the Nigerian Oil and Gas Park Scheme to enable our SMEs focus on production and services while we develop infrastructure and facilities to support domiciliation imperatives.
“We will accelerate approval for gas infrastructure projects to make gas available in specialized oil and gas manufacturing and service hub. The gas infrastructure will assist in meeting the energy and power requirement of businesses that are supporting the oil and gas industry,” Kachikwu said.
On fiscal incentives, the minister said government shall extend fiscal incentives to all investors that set up shop close to rural oil producing communities.
“Tariffs that put local production at a disadvantage are being reviewed as a way of enhancing competitiveness of locally made goods that are critical to the industry such as steel pipes and valves,” he said.
To support peculiar funding needs of oil and gas service companies, Kachikwu said the NOGICD act established the Nigerian Content Development Fund, NCDF.
“NCDF provides source of low interest fund for the execution of projects and capacity development interventions in the oil and gas industry.
“NCDF operating model is currently being reviewed to enhance its accessibility by local service companies for their capacity enhancement activities. I encourage you all to approach the NCDMB for details on the operating guidelines for accessing NCDF,” the Minister said.
He maintained that Nigeria Content is now a key requirement in the conceptualisation of oil and gas projects and contracts which is creating ample work scope to be domiciled within the Nigeria economy.
