Monitoring and Evaluation

The EQ Monitoring unit of NCDMB is responsible for Monitoring and driving compliance with the provisions of the NOGICD Act with respect to deployment of Expatriates in the Nigerian Oil and Gas industry.

Specific sections of the NOGICD Act on Expatriate deployment include:

• Section 31 – Requirements for Succession Plan for positions held by Expatriates.
• Section 32 – Allowance for Expatriate Positions in Company Management.
• Section 33 – Approval of the Board for application for Expatriates.

OVERVIEW OF EQ MONITORING ACTIVITIES:

The EQ Monitoring Unit therefore carries out the following activities:

1. Monitors and tracks the utilization of all Expatriate Quota approvals granted by the Board to companies operating in the Nigerian Oil and Gas industry.
2. Ensures that companies that have obtained EQ approvals comply with the terms of their EQ approvals with respect to –

• • Deployment of only the expatriate positions approved.
  • Fulfillment of Succession Plan, Understudy and Nigerianization and employment commitments.
  • Capture of all expatriates on the NCDMB Expatriates Biometric Database

1. Identification of frequently occurring skill sets deployed by expatriates and skill gap areas for development of Nigerians.
2. Identification of all cases of violation of the NOGICD Act by illegal deployment of expatriates without EQ approvals from the Board and application of measures to address such violation.
3. Collation, analysis and evaluation of Expatriate deployment information and data in the Nigerian oil and gas industry.

REQUIREMENTS FROM COMPANIES TO ENSURE COMPLIANCE ON EXPATRIATE DEPLOYMENT

1. Company must obtain EQ Approval from the Board before applying to the Ministry of Interior or other Government Agency for EQ, TWP, CERPAC or any other permits.
2. Company must submit a detailed Succession Plan using the Board’s Succession Plan format/ template before and after approval of EQ (SP format/ template available for download on https://ncdmb.gov.ng/monitoring-reports/)
3. Company must complete the understudy progress reporting template for each understudy using the Board’s understudy progress reporting format/ template (SP format/ template available for download on www….)
4. Company must undertake biometrics data capture for all expatriates deployed by the company.
5. Company must fulfill all Nigerianization and employment commitments/fulfil Commitments (Execute Nigerianization & Employment Commitment)
6. Company must submit comprehensive staff/ personnel list
7. Company must submit expatriate quota returns every quarter.

Upstream Projects Monitoring undertakes effective monitoring of the implementation of the provisions of the NOGICD Act in relations to the activities of the upstream sector of the Nigerian oil and gas industry.

UPSTREAM PROJECTS MONITORING TOOLS:

The measuring tools used by Projects Monitoring in carrying out its task include but not limited to the following:

1. NOGICD Act 2010
2. Minimum and Specification of Nigerian Content (Schedule “A”):
3. First consideration to Nigerian goods, services and personnel – Section 12
4. Relevant Approvals from the Board including NCCC – Section 8
5. Nigeria Oil and Gas Industry Content Joint Qualification System (NOGICJQS) – Section 55-56
6. Project Nigerian Content Plans – Section 7
7. Project Procurement Plan and reports – Sections 18 and 24
8. Project Human Capital Development Initiative Plans
9. Employment and Training Plans (download format/ template from https://ncdmb.gov.ng/monitoring-reports/) – Section 29
10. Project Execution Plan
11. Contractual Scope of Work
12. Project Work Breakdown Structure
13. Nigerian Content Project Performance Reports (download format from www..) – Section 60-62
14. Close out reports

RESPONSIBILITY OF UPSTREAM PROJECTS MONITORING:

1. Deriving Performance and Verification Methods using quantitative and qualitative indicators
2. Identify data sources, frequency of data collection & reporting, persons responsible
3. Data gathering, measuring & Reporting of data information
4. Review, Assessment, Feedback
5. Mid-term evaluation and final evaluation

OVERVIEW OF PROJECTS MONITORING ACTIVITIES

1. Monitoring and Tracking of progress on projects and activities executed in the Nigerian Oil & Gas industry especially with respect to level of accomplishment of Nigerian Content targets and commitments.
2. Ensuring that projects and activities being executed in the industry are done in compliance with the requirements and provisions of the NOGICD Act 2010.
3. Identification of all actions and processes that violate the NOGICD Act and application of measures to address and correct all such violations.
4. Collation, analysis and evaluation of data and information on all projects and activities executed in the Nigerian Oil and Gas industry.

The Gas and Downstream division consist of:

• Gas
• Crude oil marketing and investment opportunities.
• Refinery & Petrochemical department

GAS MONITORING

• Monitor all ongoing projects, contracts and activities with respect to gas development, commercialization and utilization.
• Monitor expatriate Quota utilization and succession plan implementation by gas and downstream companies.
• Monitor legal, Insurance and Financial services utilized by Gas and downstream companies.
• Monitor procurement by Gas and downstream companies.
• Ensure implementation of HCD by Gas and downstream companies.
• Ensure full implementation of Nigerian Content plans, guidelines and provisions of the NOGICD Act by Gas and downstream Companies.

Specific/applicable Sections of the NOGICD Act. 2010 on gas activities monitoring

1. SECTION 1: Application of the Act.
2. SECTION 70 (j): The implementation of the Act to ensure compliance.
3. SECTION 70 (k): Monitor and coordinate the Nigerian content performance.
4. SECTION 7 & 8: Submission of Nigerian Content Plan for certification for all projects (NCCC).
5. SECTION 55 – 56: NJQS
6. SECTION 33: Approval for the application of expatriates.
7. SECTION 18/24: Project procurement plan/report.
8. SECTIONs 49, 51 & 52: Legal, Insurance & Financial services provisions. 

Gas activities monitoring tools

1. NOGICD Act. 2010
2. NCCC.
3. ECMI Guidelines/ NCEC procedures
4. NC Gas activities Performance and Reporting templates/reports
5. Criteria for Nigerian Content Training
6. NOGICJQS portal.

Contact persons for gas

1. Manager Gas:
2. Supervisor Gas: Kopam.Adike@ncdmb.gov.ng
3. Supervisor Gas: emmanual.abakpa@ncdmb.gov.ng

CRUDE OIL MARKETING AND INVESTMENT OPPORTUNITY

• Monitor crude lifting term contracts awarded by the NNPC to ensure the implementation of Nigerian Content requirements.
• Monitor direct sales and direct purchase crude lifting contract awarded by the NNPC to ensure the implementation of Nigerian Content requirements.
• Monitor Legal, Insurance and Financial services utilized by crude lifting companies/contractors.
• Ensure implementation of HCD by crude lifting companies.
• Monitor supply of petroleum products in the Oil and Gas industry.
• Ensure full implementation of Nigerian Content plans, guidelines and provisions of the NOGICD Act by crude oil lifting and petroleum products supply Companies.

Specific/applicable sections of the NOGICD Act. 2010 on CMID monitoring

1. NOGICD Act, 2010
2. SECTION 1: Application of the Act.
3. SECTION 70(j): The implementation of the Act to ensure compliance.
4. SECTION 70 (k): Monitor and coordinate the Nigerian content performance.
5. NC Crude Oil Performance and Reporting template
6. Criteria for Nigerian Content Training

Supply of Petroleum Products

1. SECTTION 17: List of contracts to be submitted to the Board
2. Registration on the NOGICJQS portal.
3. Vessel registration/categorization with the Board.

Contact persons for CMID

1. Supervisor CMID: Solomon.attah@ncdmb.gov.ng
2. Officer CMID: ismail.abubakar@ncdmb.gov.ng

REFINERY AND PETROCHEMICAL DEPARTMENT

The Refinery & Petrochemical department (RPET) is a sub-unit of the Downstream Division in the Monitoring and Evaluation Directorate of NCDMB. RPET is saddled with the responsibility of ensuring compliance to the provisions of the NOGICD ACT 2010 in the Refinery and Petrochemical sector of the Nigerian Oil and Gas Industry.

These compliance activities include but are not limited to:

• Conduct Nigerian Content Performance Audit for Refinery and Petrochemical Companies to ascertain level of compliance with the provisions of the NOGICD Act 2010.
• Monitor implementation of Human Capital Development Programs on the Back of Refinery and Petrochemical Projects
• Monitor Expatriate Quota utilization to determine compliance level with the NOGICD Act 2010
• Monitor utilization of in-country materials, goods and services on Refinery and Petrochemical projects to ascertain level of compliance with the provisions of the NOGICD Act 2010.
• Report in-country capacity for the refining and production of Petroleum/Petrochemical Products
• Report Job creation and Employment opportunities on the back of Refinery and Petrochemical projects.

Obligations by Refinery and Petrochemical Companies

• Companies must have NCDMB approved Nigerian Content Plan
• Relevant Approvals from the Board including NCCC – Section 8, EQ Approval – Section 33
• Companies must submit periodic Nigerian Content Performance Reports as at when due.

Refinery & Petrochemical companies Monitoring Tools

• NOGICD Act 2010
• Refinery and Petrochemical NC Reporting Template.

The R & D Monitoring Unit of NCDMB is responsible for continuous monitoring of capacity building initiatives, domiciliation of activities in-country, and promotion and development of in-country research and development capacity and capabilities.

SPECIFIC SECTIONS OF THE NOGICD ACT ON R & D INCLUDE:

• Section 37 – Requirements for Projects.
• Section 38 – Requirements for 3 to 5 Year R & D Plan.
• Section 39 – Requirements for R & D Statutory Reports.

OVERVIEW OF R & D MONITORING ACTIVITIES:

The R &D Monitoring Unit, therefore, carries out the following activities:

• Ensure that companies comply with the R & D requirements of the NOGICD Act, 2010.
• Monitor performance of R & D initiatives implemented by companies.
• Ensure collaboration of companies with Centres of Excellence, Nigerian Universities and Research Centres in Nigeria.
• Ensure infrastructural development of Centres of Excellence, Nigerian Universities and Research Centres in Nigeria.
• Encourage knowledge exchange amongst expatriates, academia and the oil and gas industry professionals.
• Ensure in-country utilisation of new products, services and material development breakthroughs as a result of research and development activities in Nigeria.
• Co-ordinate stakeholder management engagements on Research and Development.
• Review submitted Research and Development Plan, Statutory reports and other CDI Plans/reports.
• Collation, analysis and evaluation of R & D KPIs and Data in the Nigerian oil and gas industry.
• Identification of cases of violation of the NOGICD Act, 2010 with respect to R & D requirements and application of measures to address such violation.
• Initiate and Monitor R & D/CDI NCNC-Rem programs arising from violations by companies and report same to the Board.

REQUIREMENTS FROM COMPANIES TO ENSURE COMPLIANCE ON R & D

• Companies operating in the Nigerian Oil and Gas Industry shall submit to the Board a Revolving Three to Five Year Plan for oil and gas related Research and Development Initiatives to be undertaken in Nigeria.
• The Research and Development Plan shall include a breakdown of expenditures that will be made in implementing the Plan.
• Company may provide for public calls for proposals for research and development initiatives associated with the operator’s activities.
• Company shall report to the Board on a quarterly basis, their research and development activities and the Board shall compare these activities to the company’s Research and Development Plan.

Capacity Building Monitoring is saddled with the responsibility to monitor the under listed activities carried out in the Nigerian Oil and Gas Industry:

• Nigerian Content Equipment Certification (NCEC)
• Nigerian Content Non-Compliance Remediation (NCNC-Rem)

The Monitoring activities are carried out in line with the NOGICD Act, 2010 and the respective activity guidelines/criteria which include the following:

• Equipment Component Manufacturing Initiative (ECMI) Guideline, encompassing the Nigerian Content Equipment Certificate (NCEC) process
• NCNC-Rem Criteria

Brief of Activities

Nigerian Content Equipment Certification (NCEC)

• Compliance monitoring of NCEC investment commitments
• Development and review of NCEC monitoring processes and templates

Nigerian Content Non-Compliance Remediation (NCNC-Rem)

• Review of NCNC-Rem proposals from companies
• Implementation of reviewed/approved NCNC-Rem proposals
• Development and review of NCNC-Rem monitoring processes and templates

Complaints and Investigation is a department (CLD) under Monitoring and Evaluation Directorate (MED). The department acts as an intermediary in dispute resolutions between the operators, service providers, host communities and other stakeholders in the Oil and Gas industry in resolving disputes and investigating of whistle blower alerts to ensure compliance in accordance with provisions of the NOGICD Act, 2010 and the Board’s directives.

ACTIVITIES OF CLD

Investigation into Petitions/Complaints:

• Receive and respond to petitions/complaints received from operators, service providers, host communities and other stakeholders in the Oil and gas industry.
• Review petitions/complaints received and make appropriate recommendations to management on how to resolve these petitions/complaints.
• Carryout internal investigation by requesting relevant information from various DDDs that will enable us to make informed decision when resolving petitions/complaints from our stakeholders.
• Request the petitioned to make a formal response to the Board with regards to the petition leveled against them, by directing them to do their own internal investigation and revert within two weeks of notification.
• Review reports submitted after investigation carried out by the petitioned has been received by the Board and make recommendations on the need to call for meetings between both parties if necessary, in other to resolve petition/complaint.

Intervention Sessions:

• Develop plan and schedule intervention meeting with all parties in resolving petitions/complaints and ensuring compliance with NOGICD Act.
• Develop minutes for sign off by the Board and all parties and ensuring action items agreed upon in the MoM are closed out in other to resolve petitions/complaints.

PROCEDURES FOR CLD STAKEHOLDERS

In order to serve our customers/stakeholders effectively and efficiently, CLD expects our stakeholders to:

• Petitions/complaints should always be addressed to the Executive Secretary and in all corresponding letters to the Board.
• Submit requested reports with regards to internal investigations carried out independently within the stipulated time ascribed by the Board in correspondences.
• Seek clarification and help when in doubt of letters received with regards to petitions/complaints from the Board.
• Attend scheduled meetings punctually.
• Respond promptly to all request during investigation into petitions from the Board and provide accurate information in investigative reports submitted to the Board.
• Always send valid petitions/complaints with relevant facts and information to the Board.
• Always treat CLD staff with courtesy.

OBJECTIVES OF LEGAL SERVICES, INSURANCE SERVICES, FINANCIAL SERVICES, MARINE SERVICES AND PROCUREMENT SERVICES

FINANCIAL SERVICES REPORT

To demonstrate compliance with Section 52(1) of the NOGICD Act on the Utilization of the services of Nigerian Financial Institutions/organizations, available in-country.

• Retention of a minimum of 10% of total revenue accruing from Company’s Nigerian Operations.

INSURANCE SERVICES REPORT

To demonstrate compliance with Section 49(1) of the NOGICD Act on the insurance of all insurable risks related to Oil & Gas business and operations with Nigerian Insurance companies and/or through an Insurance Broker registered under the provisions of the Insurance Act..

• To deepen participation of local Insurance companies and insurance brokers.

LEGAL SERVICES REPORT

To demonstrate compliance with section 51(1) of the NOGICD Act on the Utilization of the services of Nigerian Legal institutions/organizations available in country

MARINE SERVICES REPORT

To promote ownership of marine vessels by Nigerian entities and stimulate the flagging and registration of vessels in Nigeria.

To ensure that vessels owned by Nigerians and built in Nigeria get priority opportunity for engagement by industry operators.

To deepen Nigeria manning of marine vessels and maximized the use of Nigerian service providers for legal, insurance, catering, inspection and certification for transaction and utilization
of vessels.

PROCUREMENT SERVICE REPORT (Section 18 & 24)

Total retention of industry spends on procurement of material components or equipment.

To ensure that vendors utilize NCEC and Source of the procured items for easy identification of in-country capacity gaps.

Equity structures of the vendors; this is to ascertain if the utilized vendors are foreign or Nigerian

Description on the Activities of Service Utilization: Process Review & Value Analysis

• Request for submission of statutory reports (FIL, Marine & Procurement)
• Review the submitted Reports for LIF, MV & Proc. (Identify if templates are properly reported, % of NC commitments, identify if vendors source of procurement, If vendors have valid NCEC, POB, Ownership structure of the vessel, Flagging and registration, categorization status, actual amount retained in country).
• Communicate findings to the companies after review
• Schedule audit with the companies to sight relevant documentations for LIF, MV, and Proc to measure compliance level
• Issue notice of non-compliance where necessary (e.g. Utilization of services without the Boards approval, Untimely Submission, non-Submission of Statutory Reports).
• Close-out if compliant
• Follow-up to ensure that the recovery plan for non-compliance is achieved.

Key Performance Indicators (KPIs) for Financial, Insurance and Legal Services

• Financial, Insurance and Legal institutions utilized in the past six months.
• Financial, Insurance and Legal institutions plan to be utilized in the next six months.
• Insurance companies’ brokers utilized in the past six months: This is to ensure that such brokers are registered in Nigeria.
• One-year annual budget for Legal and insurance service.
• 10% retention in a Nigerian Bank.
• % of NC achievement.

Key Performance Indicators (KPIs) for Procurement

• Source of the procured items: For easy identification of in-country capacity gaps
•  Equity structures of the vendors: This is to ascertain if the utilized vendors are foreign or Nigerian
•  NCEC certification: This is to ensure that first consideration is given to vendors in agreement with the OEM’s to set up a manufacturing plant in Nigeria
• Total retention of industry spends on procurement of equipment components, spare parts and accessories in every quarter.

Key Performance Indicators (KPIs) for Marine Vessel Utilization

• Personnel on Board (POB): This is to ensure that Nigerians are given first consideration for employment.
• Vessel manning: To deepen Nigerian manning of marine vessel.
• Vessel ownership structure: To promote ownership of marine vessels by Nigerian entities.
• Vessel categorization: To encourage vessel construction in Nigerian yards.
• Vessel registration and Flagging: To stimulate flagging & registration of vessels in Nigeria.