NCDMB boss explains why Nigeria cant implement 100% local content

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Crude oil production may be affected if the Nigerian Content Development and Monitoring Board (NCDMB), were to enforce full implementation of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, The Guardian reports.

The Executive Secretary, NCDMB, Simbi Wabote, at the Public Hearing organised by the Senate Ad-Hoc Committee investigating the $16billion Egina project, said some targets set in the Act were inspirational, and not attainable at the moment because of limitations in capacity and technology.

He cited an example with Section 53 of the NOGICD Act, which mandates that all fabrication and welding activities must be carried out in Nigeria, yet there are not enough dock yards in-country where the hull of big vessels such as the Egina FPSO can be fabricated from scratch.

He said the Board set out to achieve 60% Nigerian Content on the project, but realised over 50%, which he described as commendable because the execution of Egina set new benchmarks, and domiciled new capacities and facilities in-country, one of which is the FPSO integration facility at the SHI-MCI yard located at the LADOL Free Zone, Lagos.