The Nigerian Content Development and Monitoring Board (NCDMB), says it is working to surpass the current 28 per cent Nigerian Content in the oil and gas sector of the economy.
The Executive Secretary of the board, Simbi Wabote, said on Tuesday that they were working to increase the participation of Nigerians in the manufacture of more inputs for the oil industry.
“What we have achieved so far is 28 per cent value retention within the country; that shows the extent of provision of goods and services by Nigerians using components manufactured in the country.
“In the past, industry operators simply give out figures for contracts awarded to Nigerian firms that end up relying on imported goods, but we have devised a more realistic way to assess Nigerian content.
“The current 28 per cent shows the level of value retention within the country, but we are still behind our target; the important thing is that we are making steady progress.
“We are currently working with Nigerian entrepreneurs to leverage on procurement which accounts for over 50 per cent of the cost of projects in the sector, and manufacturing of components will increase the Nigerian content.”
Wabote expressed concern that indigenous companies in the industry had not accessed the 600-million-dollar Local Content Development fund.
He said that only three indigenous firms had accessed the fund so far and promised that bureaucratic bottle necks would be removed to enable more indigenous companies to access the fund.
Wabote also said that the board had reduced the compliance approval cycle from two years to one year and would soon achieve its target of six months cycle.
He disclosed that two out of the three pipe mills supported by the board had commenced local production of pipes for the oil and gas sector.
The executive secretary added that six pipe coating mills were also on-stream, adding that the NCDMB had compelled oil firms to patronise the mills to reduce capital flight.
Wabote said that dwindling oil prices had reduced investment in the sector and compelled the board to be more efficient in its operations.