Nigeria to save $10B annually through local content devt in oil and gas – NCDMB

Nigeria will save at least $10 billion every year when all the oil and gas industrial parks being built by the Nigerian Content Development and Monitoring Board (NCDMB) fully take off in different oil producing states in the Niger Delta.

Already, the first of such parks built at Odukpani in Cross River State is ready to commence business as many manufacturers and industrialists have indicated their interests to take advantage of the scheme.

NCDMB General Manager, Corporate Communication and Zonal Coordination Division,Dr. Ginah O. Ginah, disclosed this on Thursday during a media tour of the park located in Odukpani, Cross River State.

He disclosed that several other such parks are at different stages of construction across the Niger Delta as part of NCDMB’s efforts to significantly increase local content in the oil and gas industry and generally drive Nigeria’s industrialisation.

“We have taken Nigeria’s local content level from 5% to 55%. The industry spends about $20 billion a year, so you are talking of about $10 billion saved annually,” Engr Ginah said.

He pointed out that NCDMB’s goal was to take the local content in the industry up to 70% by 2027, saying “the only way to achieve that is to ensure local manufacturing of components, which is why we are building these parks.”

“This park is ready for habitation,” Engr Ginah said of the facility started 10 years ago. “We have already advertised for interested manufacturers and are presently going through applications to see those who are qualified,” he added.

The NCDMB general manager of Corporate Communication and Zonal Coordination Division, noted that all needed facilities have been provided to make the place conducive for the manufacturers.

These include manufacturing hall, security, roads, 24-hour power supply, banking hall, restaurant, and state-of-the-art ICT facilities. Others include fire service, water treatment plant, mini parks for accommodation, and free land for those who wish to build their own structures.

“All these are things that increase cost of production, so this park is going to crash the cost of production,” Engr. Ginah said of the facility located on 25 hectares of land.

To further make the park attractive, the Federal Government has pledged $50m to attract companies to the parks.

He said that the board was very impressed by the enthusiasm being shown by manufacturers to explore the opportunities provided by the parks, expressing the hope that the scheme would lead to industrial revolution that will boost the nation’s economy and create jobs for many Nigerians.