Nigerian Content Development Board Partners with Dangote Refinery to Implement Local Content Policy

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The Nigerian Content Development and Monitoring Board (NCDMB), a regulator for the country’s oil and gas industry, has announced plans to deepen its relationship with Dangote Refinery, a processing plant in Ibeju Lekki District, on the outskirts of Lagos.

NCDMB has praised the management of Dangote Petroleum Refinery and Petrochemical Free Trade Zone Enterprises (DPRP) over its adherence to the local content law in the execution of its projects. The Board has also declared its intention to further partner with Dangote Refinery in effectively implementing Local Content policy in the country.

Local Content refers to the percentage of locally produced materials, personnel, financing, goods and services rendered to the oil industry and which can be measured in monetary terms.

Director for Monitoring and Evaluation at NCDMB, Mr. Akintunde Adelana, who represented the board’s Executive Secretary, Eng. Simbi Wabote, made the announcement this past weekend during a Content Sensitization/Awareness Creation Programme, titled ‘Let’s Walk the Nigerian Content Talk Together’, at Lekki Free Trade Zone in Lagos.

“The Dangote Refinery project is expected to close a major gap in the supply of petroleum products in the country. We consider this as a very important project and we are willing to partner with the company to ensure full implementation of the local content policy. We embarked on this journey with the company a long time ago and we are ready to partner with the Dangote Group,” he explained.

Wabote described the Local Content Act as the quantum of composite value added to, or created in the Nigerian economy by a systematic development of capacity and capabilities, through the deliberate utilization of Nigerian human, material resources and services in the Nigerian oil and gas industry.

He said the country recorded loses prior to the enactment of the local content policy, which he noted, came from jobs executed abroad by International Oil Companies (IOCs), operating in the country.

“The narrative then was that nothing can be done in-country. Plants and modules were fully fabricated offshore without any structure in place to achieve knowledge transfer. Before 2010, we had no active dry-dock facilities. The few we had were abandoned and left to rot away. Today, we have four active dry docking facilities in Port Harcourt, Onne, and Lagos,” he elaborated.

Wabote added that the board’s responsibility also include linking the oil and gas industry with other sectors of the economy, enhance multiplier effect of oil and gas investments in economy and develop pool of competitive supply chain rooted in oil bearing communities.

Wabote said non-compliance with the law, will result to the suspension of projects and contracts, a penalty of 5% of the project sum, withdrawal of NCDMB’s services, and project cancellation with unrecoverable sunk cost.

Also speaking at the occasion, the Chief Operating Officer, DPRP, Mr. Giuseppe Surace, said the programme was organized to create awareness among the company’s contractors on the requirements of NCDMB, as part of moves to ensure the local content policy take roots in their day to day operation.

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