Impact of Practical Nigerian Content Forum on economy

The sixth annual Practical Nigerian Content Forum has been a key platform for industry players to address the challenges faced in the Nigerian oil and gas sector. The forum aims to strengthen Nigerian content through the development of new strategies. CNBC Africa recently sat down with Simbi Wabote, the Executive Secretary of the Nigerian Content Development Board, to discuss the impact of the forum on the economy and the practicality of the Nigerian Content Policy. Wabote highlighted the significant progress that has been made in local content in Nigeria over the past decade. He noted that before the enactment of the Local Content Act in 2010, the country had a mere 5% local content in the industry. However, between 2010 and 2016, Nigeria was able to increase this to about 30%, a commendable achievement. Despite the progress, Wabote acknowledged that there were still challenges hindering the country from reaching its target of 60% local content. One of the major obstacles identified by Wabote is the issue of funding. Developing local capacity requires substantial financial support, which local vendors struggle to access due to high interest rates from financial institutions. Additionally, the lack of reliable power supply in the country adds to the cost of local content development. Infrastructure and security challenges, particularly in the Niger Delta region where oil and gas activities are concentrated, further exacerbate the situation. Wabote emphasized that addressing these challenges requires a collaborative effort involving various government agencies, security forces, communities, financial institutions, and other stakeholders. Wabote stressed that local content development is a long-term process that requires the creation of conducive environments and continuous encouragement of local participation in the oil and gas sector. He cited examples of positive outcomes resulting from the implementation of the Local Content Act, such as increased vessel ownership by Nigerians and the reduction of expatriates in the workforce. Today, many Nigerian companies are operating in the oil and gas fields, a significant shift from the dominance of international oil companies in the past. In terms of job creation, Wabote noted that the implementation of the act has led to the generation of employment opportunities within the Niger Delta communities. Local companies have emerged to manage facilities in the region, employing and training individuals from the area. Looking ahead, the Nigerian Content Development Board aims to double the number of jobs created in the past six years. One key issue that the board is focusing on is the analysis of demand within the oil and gas sector. Wabote highlighted the importance of understanding the market demand for services and products in order to guide investment decisions and capacity development. The board plans to critically assess the demand-supply dynamics in the industry and identify areas for targeted capacity development. As the board looks to the future, Wabote outlined two key areas of focus. Firstly, there will be a comprehensive review of the implementation of the Local Content Act over the past six years to evaluate progress and identify areas for improvement. Secondly, the board is keen on advancing discussions around establishing industrial parks to support local manufacturing. This initiative aims to provide infrastructure that will facilitate the development of local content in Nigeria. Overall, the Practical Nigerian Content Forum continues to play a vital role in driving economic growth through the development of local content in the Nigerian oil and gas sector. With a focus on addressing challenges, promoting local participation, and building capacity, Nigeria is on a path towards further enhancing its local content capabilities and contributing to the growth of its economy.