Business
NCDMB Boss Elucidate Role Of NCCF
Modupe Asudo
Indigenous operators and service companies in the oil and gas industry have been advised to identify with appropriate Sectoral Working Groups under the Nigerian Content Consultative Forum (NCCF) to be able to receive adequate attention on operational difficulties of whatever nature.
The Forum, established to “identify issues and responsibilities, and propose interventions that can address issues and harness opportunities,” has helped many indigenous companies to find their footing in the industry.
These were part of the explanations provided by the Executive Secretary of the Board, Engr. Simbi Kesiye Wabote, on Day 3 of the ongoing Practical Nigerian Content Conference, holding in Uyo, Akwa Ibom State while responding to a question by a participant on how challenges confronting a member could be resolved.
The NCDMB boss advised any such business owners not to hesitate to approach the NCCF.
It was a day that energy sector chief executives subjected the oil and gas industry regulatory framework and the enabling statute, Nigerian Oil and Gas Industry Content Development (NOGIC) Act, 2010, to critical evaluation, commending the implementing agency, the NCDMB, for phenomenal success in actualising objectives.
The energy chiefs were specifically interested in how what is known in industry as ‘The 7 Ministerial Regulations’ has impacted on oil and gas operations and, generally, how implementation of the Act has advanced objectives such as enhanced Nigerian content and value addition through sectoral and regional linkages.
All were in agreement with the explanation of a legal expert, Barrister Ilu Ozekhome, that “The regulations are a framework within which provisions of the Act could be enforced.” Preparatory work on the regulations had gone through several processes in which stakeholders had been fully engaged.
The Chairman, Petroleum Technology Association of Nigeria (PETAN), Nigerian Content Consultative Forum (NCCF), and member, Oil and Gas Trainers Association of Nigeria (OGTAN), Mr. Akin W. Osuntoki, noted that “The regulations have helped in building capacity” in the oil and gas industry.
He pointed out that with effectiveness and efficiency in enforcement of the regulations, indigenous companies found all the space and material support to grow their capacities and capabilities.
According to him, “The role of the NCDMB has been very strategic,” and that the Board has been “a referee and gate-keeper.”
Continuing, he added, “Not only is NCDMB able to chart in-country demand, it is able to chart regional demands, and this enables investors to plan and to expand.”
“Today,” he revealed, “PETAN is shaking hands across Africa,” a reference to Nigeria’s service companies now operating as international oil companies (IOCs) through creation of regional linkages.
Another industry chief, Dr. Timi Austen-Peters, Chairman, Fabrication, Nigerian Content Consultative Forum (NCCF) declared: “We are beneficiaries of the [NOGICD] Act,” explaining the many ways effect implementation of the statute has fostered growth among his and other oil and gas companies.
He said cost-savings arising from NCDMB’s approach in ease of doing business enabled to take advantage of business opportunities.
The Managing Director, Tenaris, Mrs. Rosario Osobase, said, “NCDMKB is doing so much in mentoring other African countries” in local content practice. DR. Pius Okigbo, Jnr, Chairman, ICT, NCCF, echoed the views of the other industry chiefs on the successes of the Board.
Other speakers commended the Management of the NCDMB for its Nigerian Oil and Gas Parks Scheme (NOGAPS), which is aimed at creating industrial parks for companies engaged in the manufacture of equipment components, spare parts and tools required in oil and gas industry operations.
The yearly Conference comes to an end on Thursday, 8 December, with site visit to Standard Institute of Technology, a subsidiary of Standard Testing and Inspection Services Limited, Uyo.
The Nigerian naira appreciated further against the U.S. dollar in both the official and black markets, closing the week with significant gains.
Data from FMDQ shows the naira strengthened to N1631.21 per dollar on Friday, improving from Thursday’s exchange rate of N1659.26, marking a gain of N28.05.
In the parallel market, the naira also performed well, rising by N10 to N1670 per dollar on Friday from N1680 exchanged the previous day.
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Despite a drop in foreign exchange transaction turnover, which fell from $450.39 million on Thursday to $238.36 million on Friday, the local currency’s appreciation underscores positive market sentiment.
These gains follow recent policy measures introduced by the Central Bank of Nigeria (CBN) aimed at stabilizing the naira.
Recall that on Thursday, the CBN introduced new FX code guidelines and electronic FX matching to reduce speculation and enhance market transparency.
As the week closes, traders and investors are hopeful that these interventions will continue to stabilize the naira amid persistent currency fluctuations in the forex market.
The Federal Government of Nigeria has announced that 63 items have been exempted from Value-Added Tax (VAT) as part of ongoing efforts to stimulate economic growth and support key industries.
This was disclosed by Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, in a post on X on Friday.
The exempted items are outlined in the “Value Added Tax (Modification) Order, 2024,” which was officially gazetted on September 3, 2024.
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The exemptions primarily target goods and equipment related to clean energy and the oil and gas sectors, signaling the government’s commitment to transitioning to more sustainable energy sources and revitalizing the oil and gas industry.
This announcement came just two days after Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, revealed the introduction of key fiscal incentives aimed at boosting Nigeria’s oil and gas sectors, both upstream and downstream.
The incentives include the VAT modification order and a notice of tax incentives for deep offshore oil and gas production, under the Oil and Gas Companies (tax incentives, exemption, remission, etc.) Order, 2024.
Here are all 63 items exempted from Value-Added Tax (VAT)
1. CNG/LPG Dual Fuel Vehicles
2. Dedicated LPG Vehicles
3. CNG/LPG Dual Fuel Vehicles Parts
4. Semi-knocked down units (for assembly) of CNG and LPG Buses
5. Parts and semi-knocked down units (for assembly) of Electric Vehicles
6. Electric Vehicles
7. Electric Vehicle Batteries
8. Electric Vehicle Charging Systems
9. Electric Vehicle Solar Charging Systems
10. LPG/CNG Conversion Kits
11. CNG Cylinders
12. CNG Cascades
13. CNG Dispensers
14. Gas Generators
15. CNG Trucks (Bobtails and Bridgers; fixed axle and semi-trailers)
16. Steel Pipes
17. Steel Valves & Fittings
18. SS Tubes & Fittings
19. Storage Tanks (all sizes)
20. Regulators
21. CNG Pumps and Compressors (all types)
22. Steel
23. Pressure Relief Valves
24. Hydraulic Press/Rolling Machines
25. Heat Treatment Equipment
26. Liquid Level Gauges
27. Pumping Housing and Motors
28. Regulator Bodies
29. Pressure Gauges
30. Truck Chassis
31. Metering and Measuring Equipment (including weighbridges, filling scales)
32. Dispensing Equipment (dispensing scales, nozzles, gas filling systems)
33. Safety Features (emergency shutoff valves, pressure relief valves, excess flow valves, breakaway couplings, quick release couplings)
34. Gas Water Heaters
35. Gas Burners for Industry
36. Gas Boilers
37. Gas Washing Machines and Dryers (launderettes)
38. Household or Laundry-type Washing Machines, including machines that both wash and dry
39. CNG, LPG, and Cryogenic Hoses
40. Tubes, Pipes, and Hoses, and Fittings (e.g., joints, elbows, flanges) of Plastics
41. CNG Truck Heads
42. Gas Leak Detectors
43. Gas Air Conditioners
44. Cylinder Refurbishment Equipment
45. Blending Skid/Unit
46. Odourizing Units
47. Chromatography Unit (GC)
48. LNG Liquefying Equipment
49. Heat Exchangers
50. LNG Vaporizers
51. Regassification Plant
52. Liquefied CNG Compression Terminals
53. LNG Plant, Machinery, Pumps, Compressors, Filters (including Gas Filters), Weighing Machines, Valves Equipment
54. Cryogenic Storage Tanks
55. Liquefied CNG Conversion Tanks
56. Pipes, Piping Fittings, and Flanges for LNG Processing
57. Electrical Equipment, including Cables for LNG Processing
58. Steel Plates, Angles, and Bars for LNG Processing
59. LNG-Related Chemicals
60. Biogas Digesters
61. Biogas Compressors
62. De-sulphurization Units
63. Distillation Columns for Processing Biofuels
The Central Bank of Nigeria (CBN) has unveiled a new Electronic Foreign Exchange Matching System (EFEMS) to streamline foreign exchange transactions within the Nigerian Foreign Exchange Market (NFEM).
The system, set to be implemented by December 1, aims to promote transparency, market-driven exchange rates, and curb speculative practices in the foreign exchange market.
In an official statement by Omolara Duke, Director of the Financial Markets Department at the CBN, the EFEMS will be a major tool for improving market governance and allowing the CBN to maintain greater oversight of foreign exchange activities.
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“This development is expected to reduce speculative activities, eliminate market distortions, and give the CBN improved oversight capabilities to effectively regulate the market,” Duke said.
EFEMS will require all authorized dealers to conduct foreign exchange transactions through a centralized platform approved by the CBN.
These transactions will be reflected immediately, providing real-time transparency to market participants.
A two-week trial period is scheduled for November before the full implementation in December.
Real-time prices will be published during the live phase of the system, allowing the public to access up-to-date market information.
Additionally, the CBN will collaborate with the Financial Markets Dealers Association (FMDA) to provide detailed rules and guidelines for EFEMS.
The Nigerian FX Code and revised Market Operating Guidelines will offer guidance to participants, and authorized dealers will be expected to meet compliance standards before the system goes live.
Market participants have been urged to ensure that all necessary documentation, training, and system integrations are completed prior to the launch.
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