The Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, has stated that the implementation of the Nigerian Oil and Gas Industry Development Act (NOGICD Act), signed into law in 2010 by President Goodluck Jonathan is yielding the desired results.
Speaking at the ongoing Practical Nigerian Content (PNC) 2014 in Yenegoa, Bayelsa State, the minister stated that the signing into law of the NOGICD Act was borne out of the need for Nigeria to be actively engaged in the exploration and production activities of the oil and gas sector in a bid to harness the abundant potentials of this strategic industry towards achieving significant in-country value-addition, employment generation and capital retention.
She said since its inception, the NOGICD Act had enhanced job creation and the development of indigenous human and technical expertise.
According to her, this had further stimulated other sectors of the economy and would continue to positively impact Nigeria’s Gross Domestic Product (GDP).
She said the government’s efforts towards growing Nigerian content were yielding the desired results.
“This is underscored by the growth of Nigerian content from an abysmal three to five per cent before the inception of NOGICD Act to between 12 and 18 per cent. This is indeed a massive improvement,” she said.
According to her, since the implementation of the marine vessel utilisation strategy in 2013, there has been a marked growth in the number of Nigerian owned vessels that are doing business in the oil and gas industry.
“For instance, out of 1,000 marine vessels that were captured by the Nigerian Content Development and Monitoring Board (NCDMB) in 2013, 49.5 per cent were in category ‘A’ that is, either built in Nigeria or owned by Nigerians. Also, out of 1,232 vessels captured as at the third quarter of 2014, 89.2 per cent were in category A (and class AAA),” she added.
She disclosed that at least two additional dry-docking facilities would be required within the shortest possible time for vessel maintenance and ship repairs in view of the growing economic and maritime activities in Nigeria and West Africa.
The minister, who was represented by the Permanent Secretary in charge of the Ministry of Petroleum Resources, Dr. Jamila Shuara, further stated that such dry-docking facilities would also put the nation on a right path towards building ocean going vessels.
“Government is keen on encouraging investments in this area. A new dry dock facility would attract about $1billion dollars into the Nigerian economy and generate over 9,000 direct and ancillary employment opportunities for Nigerians,” she said.
Alison-Madueke also stated that since the inception of NOGICD Act 2010, over $5 billion have been invested in facility upgrade that was largely driven by oil and gas industry needs. “Fabrication capabilities have subsequently increased by 40 per cent and it is gratifying to know that production platforms, Christmas tree frames, pressure vessels and many other facilities are now fabricated in-country,” the minister added.
Speaking on the success recorded in the area of human capital development, the minister stated that government’s interventions on the back of projects have provided over 5,000 training and employment opportunities.
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