Energy
NCDMB Proffers Guideposts For Sustainable Local Content Practice In Africa
On the heels of remarkable discovery and exploration of oil and gas resources across several countries in Africa, the Nigerian Content Development and Monitoring Board (NCDMB) on Wednesday proffered strategies that would enable those nations to institute sustainable Local Content practices, achieve in-country value addition, and benefit maximally from the exploitation of their hydrocarbon resources.
The Executive Secretary NCDMB, Engr. Simbi Kesiye Wabote offered the suggestions at the two-day Namibia Oil and Gas Conference holding in Windhoek, Namibia. He hinted that Africa currently accounts for about 12% of annual global oil production, but only consumes less than 4% of the global production, describing the situation as potential opportunities in production, processing and utilization of oil and gas within the continent for improvement in the standard of living.
Speaking as the preeminent local content advocate in Africa, the NCDMB boss gave an overview of key parameters that are critical to in-country value addition and growth of the sector on a sustainable basis. These are Regulatory Framework, Gap Analysis, Capacity Building, Funding and Incentives, Research and Development, and Access to Market.
Director Corporate Services NCDMB, Mr. Patrick Obah; Executive Secretary NCDMB, Engr. Simbi Kesiye Wabote and Director Legal Services, Mr. Umar Babangida at the two-day Namibia Oil and Gas Conference held in Windhoek, Namibia.
Citing the example of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, 2010, he said: “An enabling regulatory framework backed with the appropriate legislation is very fundamental in local content practice,” and that it is “better than directives or policies that are subject to speculations or compliance on ‘best endeavour’ basis. According to him, once such a statute is in place “It is no longer optional or debatable whether to comply with local content requirements.”
Among lessons under the regulatory environment parameter he said, “The law must promote and enable investments rather than become a stumbling block to existing or new investors both locally and internationally,” and that “Provisions should be made in the law to address any lacuna without having to review the entire law such as the provision in the NOGICD Act for utilization of Ministerial Regulations to address any gaps or opportunities.”
Besides, he noted, a regulator “must be pragmatic in applying the law as the oil and gas industry is very dynamic such that aspirational goals and prevailing realities are not always on the same trajectory.”
On Gap Analysis, the NCDMB boss said, “Baseline and periodic gap analyses are essential to determine gaps that are needed to be closed in the areas of skills, facilities and infrastructure.” Lessons learnt so far in that regard show that “All gaps cannot be closed overnight even if you have the resources to do it,” and that it would be necessary to “prioritize areas of high impact and deploy prudent implementation measures.”
Structured capacity building intervention, according to him, “is essential to spur the development of in-country capacities and capabilities,” but implementation of major projects is a prerequisite. In his words, “Continuous and well sequenced stream of major projects is important to sustain utilization of established capacities and attract additional investments for growth.”
Funding and Incentives, he emphasized, are essential to implement local content programs, develop infrastructure, attract new investments, and keep existing businesses afloat where required.” He cited the Nigerian Content Development Fund (NCDF) provided for in the NOGICD Act, which has so far been deployed in the launch of the $350 million Nigerian Content Intervention Fund, the ongoing development of the Nigerian Oil and Gas Parks Scheme (NOGAPS), and construction of the 17-storey corporate headquarters of the Board.
On Research and Development, Engr. Wabote said, “Local content thrives where there are robust Research and Development guidelines to drive development of home-grown technology,” pointing out that in Nigeria there is “a $50 million Nigerian Content Research and Development Fund to drive basic research, commercialization of research breakthroughs, establishment of Centers of Excellence, and to sponsor university endowments.”
Access to Market, the Executive Secretary observed, is very essential, noting that “The policies or laws, the capacities developed, and the research and development efforts will become frustrating if there is no outlet to utilize them and receive reward for sustainability and growth. He equally pointed to “opportunities realizable from the African Continental Free Trade Agreement (AfCFTA).
The presentation of the NCDMB boss was rounded off with an appeal that Namibia do her best “to avoid Dutch Disease syndrome in which rapid development of your oil and gas industry leads to a decline in other sectors of the Namibian economy.”
He added that “this exciting era of oil and gas discoveries and their development should not lead to decline or abandonment of…mining, fishing, agriculture and tourism sectors of the economy.”
The Conference, organised by the Economic Association of Namibia (EAN), Namibia Investment Promotion and Development Board (NIPDB) and the Hanns Seidel Foundation (HSF) in strategic partnership with the National Petroleum Corporation of Namibia (NAMCOR) ended on Thursday.
Amid a slight increase in gas production, Nigeria’s oil output experienced a substantial rise in November 2024.
Gas production saw a 2.9% month-on-month (MoM) increase, reaching 2,292,951 million standard cubic feet (MSCF) from 2,292,471 MSCF in October.
However, on a year-on-year (YoY) basis, the growth was minimal, with a mere 0.02% increase in output for the first 11 months of 2024, compared to the same period in 2023.
READ MORE: Tinubu Mourns Ex-U.S. President Jimmy Carter, Celebrates His Legacy
The latest gas report from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) also revealed a 1.6% increase in domestic gas consumption.
A total of 606,658 MSCF was consumed locally, compared to 596,861 MSCF during the same period in 2023. Gas exports, meanwhile, rose by 6.9%, reaching 829,156 MSCF, up from 775,547 MSCF in the corresponding period of 2023.
This growth in exports continues to play a vital role in bolstering Nigeria’s foreign exchange earnings.
Despite these positive figures, sources close to the Ministry of Petroleum Resources (Gas) noted that oil remains the dominant force in Nigeria’s energy sector, with gas taking a secondary role.
On the other hand, the NUPRC’s oil production report revealed a remarkable surge.
Nigeria’s oil output, including condensates, rose by 13.3% year-on-year in November 2024, reaching 1.7 million barrels per day (bpd), up from 1.5 million bpd in November 2023. Month-on-month, oil production also increased by 10%, from 1.5 million bpd in October 2024.
Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprises (CPPE), discussed the broader structural dynamics within Nigeria’s economy, highlighting the dominance of the non-oil sector.
In his 2025 Outlook, Dr. Yusuf noted that the non-oil sector contributed 94.43% to Nigeria’s GDP in Q3 2024, while the oil sector accounted for just 5.57%.
“However, the economy is characterized by a paradox of the oil sector contributing an estimated 90% of foreign exchange earnings, while the non-oil sector accounts for about 10%,” Dr. Yusuf said.
“This is a structural shortcoming in our economy which needs to be addressed, as sectors that contribute hugely to GDP have no corresponding contribution to foreign exchange earnings.”
He further emphasized the need to address the challenges faced by the non-oil sector, which include issues related to productivity, infrastructure, funding, and regulatory constraints.
“The policy implication is that more should be done to fix the challenges of productivity and competitiveness of the non-oil sector of the economy,” Dr. Yusuf added
The Nigerian National Petroleum Company Limited (NNPC Ltd) has announced that the 125,000-barrel-per-day Warri Refining & Petrochemicals Company (WRPC) in Warri, Delta State, has become operational.
This is coming about a month after the commencement of operations at the 60,000-barrel-per-day-old Port Harcourt Refinery.
The Group Chief Executive Officer, NNPC Ltd, Mele Kyari, made the disclosure during a tour of the facility on Monday.
ALSO READ: SERAP Urges Tinubu To Direct CCB To Publish President’s, VP’s, Others Assets
A video posted by Channels TV on Monday showed Kyari addressing a tour team, which included the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed.
Before the tour commenced, Kyari explained that the inspection aimed to show Nigerians the level of work completed so far.
According to him, although the repairs on the facility are not yet 100 per cent complete, operations have commenced.
He said, “We are taking you through our plant. This plant is running. Although it is not 100 per cent complete, we are still in the process. Many people think these things are not real. They think real things are not possible in this country. We want you to see that this is real.”
Located in Ekpan, Uwvie, and Ubeji, Warri, the petrochemical plant produces 13,000 metric tonnes per annum (MTA) of polypropylene and 18,000 MTA of carbon black.
Commissioned in 1978 and managed by NNPC Ltd, the WRPC was built to supply markets in the southern and southwestern regions of Nigeria.
The mechanical completion of the facility was initially scheduled for the first quarter of 2024, according to the Spokesperson of the NNPC Ltd, Olufemi Soneye.
“Warri should be done by Q1 (first quarter) 2024,” Soneye stated.
The WRPC is one of Nigeria’s four refineries. Others include the old and new Port Harcourt Refining Company in Rivers State and the Kaduna Refining and Petrochemical Company in Kaduna State.
MRS Oil Nigeria Plc, a prominent player in the Nigerian downstream oil industry, has implemented a new petrol price of N935 per litre across all its retail service stations nationwide.
The company has also called on Nigerians to monitor and report any outlets that fail to adhere to the new price structure.
Biztellers reports that this is consequent upon an announcement by the President of Dangote Industries Limited, Aliko Dangote, that the Dangote Petroleum Refinery has partnered with MRS Oil and Gas to offer petrol at N935 per litre at retail outlets, following a reduction in the ex-depot price from N970 to N899.50 per litre.
ALSO READ: Dangote Slashes PMS Price To N899.50k
It was gathered that MRS Oil Nigeria Plc has instructed all its outlets to implement the new price immediately, setting up a digital platform and monitoring team to ensure full compliance.
In a statement on Monday night, the company declared, “Petrol is now being sold at N935 at MRS Filling Stations nationwide. If you find any station not following this price, please report it. Call 08009447853 or email: NG-FMKPMGWHISTLEBLOWING@NG.KPMG.COM”
Emphasising the eco-friendly nature of its products, MRS Oil added, “We call on all petrol station owners to join MRS Oil Nigeria Plc in improving the supply chain of our beloved country, ensuring product quality and availability in every corner of Nigeria for the benefit of all Nigerians.”
In Lagos, commuters were seen queuing at MRS filling stations to purchase petrol, with many expressing their gratitude to the Dangote Petroleum Refinery and MRS Oil and Gas, urging other marketers to support the indigenous refinery rather than import off-spec products into the country.
A commuter at the MRS station at Alapere on the Lagos Ibadan Express way, Ibukun Phillips, could not hide her joy as her husband filled up their car.
“I am very happy today. This is a victory for Nigeria,” she said. “The price reduction is the best gift of the season. But beyond just the reduction, we are buying standard, eco-friendly petrol at a lower rate. My husband and I have decided we will only be using MRS from now on because we are confident in the quality of the product and supporting the economy.”
A commercial bus driver, Adio Ajibade described the price reduction as a great relief, especially during the festive season.
“The reduction is a great relief. It will reduce transportation costs and benefit Nigerians. God will continue to bless Alhaji Aliko Dangote,” he said.
A public affairs analyst and university lecturer, Dr. Tunde Akanni, said the collaboration between Dangote Petroleum Refinery and MRS Oil represents a significant step towards improving the affordability, quality, and sustainability of petroleum products in Nigeria.
According to Dr. Akanni, “this move will not only help ease the financial burden on Nigerians but also promote a more environmentally conscious approach to fuel consumption, benefitting both the economy and public health in the long term.”
Tinubu To Attend Africa Heads of State Energy Summit In Tanzania
Italy Collaborates With Edo To Combat Irregular Migration
Terrorism: Police Neutralises ESN Kingpins, Destroys Camps In Imo
JUST IN: Security Beefed Up As Obasa’s Supporters Occupy Speaker’s Lodge
9mobile Commends NCC For 50% Tariff Adjustment To Boost Telecom Sector
Kano Police Warn Residents Of Imminent Terror Attack Threats
OSSG Raises Alarm Over Murder Plot By APC Chieftain
NCC, SMEDAN, NAICOM, SEC, Others Set for SUPERNEWS SMEs Conf June 13
Sahara’s Tonye Cole resigns from GPHCDA
Niger Delta Avengers: President Buhari Reads riot Act …considers the carrot and stick option
Oando opens ultra-modern petrol station in Lagos
