Capacity building through intervention projects

The NCD is gathering data and developing interventions in consultation with the NCCF and Operators to achieve Federal government targets of 45% by 2006 and 70% by 2010. Currently the NCD has developed over 20 intervention projects to bridge local capacity gaps in the industry. These projects range from infrastructure upgrades, resource training and certification, information management and financing.

Compliance monitoring of all activities

A coordination procedure which governs Nigerian content activities of stakeholders in the industry has been put in place. In addition, the Nigerian Content Division will be actively involved in the review of ITTs, evaluation of bids, and monitoring of projects during implementation to ensure NC compliance. Provisions are also made in the draft bill for sanctions against defaulters.

Alignment of key industry stakeholders

Expectedly, the NNPC has achieved buy-in and support for the Nigerian Content programme from Operators and other stakeholders:

• Oil companies are members are members of the NCCF and actively participate in monthly meetings of the committees to discuss and review capacity building programs.
• In accordance with the industry coordination procedures, dedicated Nigerian Content offices have been set up in all operator companies and managers appointed to coordinate company NC activities.

Achievements to Date

Significant progress has been made in the implementation of the Nigerian Content programme.
There has been a measurable increase in the quantum of work awarded to indigenous contractors
This has largely been achieved through the NCDs efforts to ensure that any work that can be executed in Nigeria or by Nigerians is specified in the Nigerian content scope in the ITTs before they are issued.

In addition the NCD has initiated a number of intervention projects, of which the following key outcomes can be expected:

1. A Nigerian Content fund of $300- $500 million USD to support local companies with working capital and medium to long term financing which will be fully operational in the next 6 months.
2. Establishment of a deepwater port with supporting fabrication facilities operated by world class fabrication companies to integrate FPSO topsides in Nigeria within the next 3 years
3. Coordination of in-country capabilities to enable the local manufacturing of steel pipes for oil and gas projects by end of 2006

A number of Nigerian companies have begun to brace up to the several opportunities from the recent guidelines, and invested in key equipment required to boost their capabilities and capacity.

 Expectations from the Nigerian Content Programme

In the short term, the industry directives and intervention projects are expected to create several thousand jobs for engineers, welders and other professionals as well as artisans in the Engineering, Procurement and Construction phase of projects.

With requirements for utilization of locally manufactured goods and equipment, major investments in infrastructure are expected and local manufacturing industry will be reinvigorated.

 Plans for building the required capacity for the Nigerian companies in the industry

Capacity building is one of the key plans for achieving government targets and this is being pursued through:

• A survey of available capacity and identification of needs for new projects and operations;
• Identifying new opportunities for local suppliers;
• Training of Nigerians in targeted areas of competency and acquisition of technological and managerial capability;
• Development of infrastructure and upgrade of facilities;
• Local business and supplier enhancement
• Project financing and funding of local businesses.

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