The Nigerian Content Development and Monitoring Board (NCDMB) and the Nigerian Customs Service (NCS) would collaborate to protect local oil servicing companies by preventing the importation of goods which local firms have full capacities to manufacture. Some of those oil and gas goods include cables, coated pipes, some OCTG tubulars, helical welded pipes and coveralls.
The agencies would also partner to ensure authentic categorization of vessels that operate in the Nigerian oil and gas industry. The essence is to certify that “vessels categorized by the Board that have Nigerian ownership status and demonstrate capacity and capability are given first consideration in contract awards and execution of jobs,” the Executive Secretary of NCDMB, Engr. Simbi Wabote said.
The agreement was reached when the Executive Secretary paid a courtesy visit to the Comptroller–General of Customs, Col. Hameed Ibrahim Ali (Rtd in Abuja recently.
For effectiveness, the two agencies would inaugurate a joint committee. They would also integrate their electronic platforms-the Nigerian Oil and Gas Industry Content Joint Qualification System (NOGIC JQS) and Nigerian Integrated Customs Information System (NICIS).
The collaboration would among other benefits, ensure that NCDMB and NCS excel in the efficient and timely collection and accounting of revenue and protection of the Nigerian oil and gas industry.
Making a case for strict regulation of imports, Wabote said, “we need the Customs to check the activities of some of individuals and companies that flout the provisions of the Nigerian Content Act to import oil and gas products that are available here and thereby create unemployment and kill the dreams of local investors.”
On vessel categorization, the NCDMB boss sought the support of Customs to address difficulties in verifying the authenticity of Custom Duty payment documents presented by vessels vendors to the Board for evaluation and determine status of Temporary Custom Import Duty on vessel ownership.
“This will enable us establish the genuine ownership and categorisation of such vessels in the oil and gas sector.”
In his remarks, the Comptroller–General of Customs commended the Board for the achievements it recorded in the implementation of the Nigerian Content Act and for its initiative to synergize with NCS. He confirmed that NCS would collaborate with the Board, adding that the agency had always wanted to partner key players and regulators in the oil and gas industry in the area of tariff and trade as Customs does not operate in isolation.
He said, “If we must improve on our Local Content, we need to protect the interest of Nigerians.”
Earlier in his presentation, the Executive Secretary highlighted some achievements of the Board, stating that $5bn spend was now being retained in-country out of the annual spend of $20bn, which used to be expended completely overseas in the past.
He added: “Before 2010, we targeted four pipe mills; today we have two world-class pipe mills and five impressive pipe coating yards. Before 2010, only three percent of marine vessels were Nigerian owned; today, Nigerians control and own 36 percent of vessels that are used in the oil and gas industry.
“Before 2010, we had no active dry-dock facilities. The few we had were abandoned and left to rot away. Today, we have four active dry docking facilities in Port Harcourt, Onne, and Lagos. “Over 30,000 direct jobs have been created on the back of implementation of the Act. In fabrication, today Nigeria can handle fabrication of more than 60,000 tonnes per year.”
Speaking further the NCDMB said, “in cable manufacturing, all cables required in the oil and gas sector are all manufactured in-country. Assembly of Offshore Christmas trees in-country never existed before but now there are facilities in-country to do this. We have witnessed the growth of successful indigenous operators such as Seplat, Aiteo, and others. Infrastructure in also in place for FPSO integration in-country like the one done recently for the Egina project.”
He however stated that the Board was still not satisfied with the level of Nigeria Content achieved and had developed a 10-year strategic roadmap with the aspiration of growing Nigerian Content in the oil and gas sector to 70 percent by the year 2027.
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