Abdulmalik Halilu

Info

Name Abdulmalik Halilu
Position General Manager, NCDMB

Please tell us more about NCDMB’s drive to address local content needs and development within the oil and gas sector in Nigeria.

 

From 2010 when the Board was created to 2017, Nigerian Content level has increased from 5% to 26%.

The growth was achieved through systematic increase in capacity utilisation of the local supply chain providing services in manufacturing, fabrication & construction, design engineering, marine operations & logistics, well & drilling, inspection testing, & certification, and project management. Growth was also achieved through utilisation of indigenous manpower in oil and gas operations.

To consolidate on the gains going forward, NCDMB has developed a 10-Year Strategic Roadmap through which the Board seeks to significantly increase the Nigerian Content level from 26% to 70% over a 10-year period (2027).

The 10 Year Strategic Roadmap is anchored on 5 strategic pillars and 4 enablers, each of which address key focus areas for development of Nigerian content:

 

Pillars:

  • Technical Capacity Development – Research & Development, Manufacturing, Oil & Gas Parks
  • Compliance and Enforcement – deepens monitoring oversight across Upstream, Midstream and Downstream segments of the industry
  • Enabling Business Environment – facilitates commercially viable business environment that encourage sector investment
  • Organization Capability – develops institutional capacity (people, process, technology, infrastructure) to superintend over the mandate given to the Board
  • Sectorial and Regional Market Linkages – promotes new investments in high end activities and facilitate access to Nigerian made goods and services to non-oil sectors and regional markets

 

Enablers:

  • Funding – single digit (8%) financing support to local supply chain through the Nigerian Content Development Fund
  • Regulatory environment – emplace policies that address binding constraints to local content development
  • Collaboration and Stakeholder Engagement – leverage strengths and mandate of relevant stakeholders to achieve growth in local content
  • Research and Development – Promote development of homegrown technology by developing local R&D culture and capability

 

A robust Monitoring and Evaluation system has been developed to track progress towards realisation of 70% Nigerian content by 2027, measured by the following indicators:

  • Retain $14 Billion out of $20 Billion annual industry spend
  • Create 300,000 jobs

 

Can you share with us capacity building initiatives you are engaged in currently and will highlight at the ALC 2018 conference?

NCDMB’s capacity building initiatives is anchored on 4 broad themes:

Manufacturing and Infrastructure development:

  • Nigeria Oil and Gas Park Scheme
  • Equipment Component Manufacturing Initiative
  • LPG Cylinder Manufacturing Initiative etc.
  • Modular Refinery Scheme

Human Capital Development initiatives:

  • Project Based Training
  • Research and Development Centres of Excellence
  • Training Centres of Excellence
  • Direct Training Intervention
  • Youth Empowerment, Employment & Entrepreneurship Program

Supplier development:

  • Nigeria Content Development Fund
  • Nigeria Content Consultative Forum

Asset ownership:

  • Marine vessel acquisition and utilisation scheme
  • Oil rig acquisition scheme

 

What message do you have for investors looking for opportunities in the petroleum sector in the region?

Reserves:

With over 128,359.0 Million barrels (OPEC annual statistical data 2017) of oil reserves and 52,014,808.5 billion square cubic meter of gas, Africa account for about 8% of the World’s hydrocarbon reserves. Nigeria is among the top 10 economies in the World in terms of hydrocarbon deposit, Angola and Libya also have huge reserves. Couple with new discoveries in many parts of Africa combine, makes the region an attractive destination for investments in exploration, field development, processing plants, training and services connected to the Oil and Gas Industry

 

Favourable Regulations:

Prospective investors should take advantage of regulations in Africa that protect investors. In Nigeria, the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act 2010 gives first consideration to companies that set up in Nigeria, other African countries like Ghana also have local content laws that protect investors. There is guaranteed markets for investors that set up in these jurisdictions.

 

Demand:

As an emerging economy with significant gap in infrastructure and manufacturing, there is abundant opportunity to invest in critical infrastructure, manufacturing plants, training facilities, testing, certification & commissioning, marine assets and research, to meet the demand for materials and services required in the course of exploring new discoveries.

 

Why do events such as ALC 2018 play an important role in highlighting the need to increase local content across the value chain?

  • Create opportunity to meet industry players in Africa and share ideas on emerging trends in local content.

 

  • Give opportunity to showcase capabilities among African countries that can be leveraged regionally.
  • Create platform to shape agenda for regional collaboration in infrastructure and human capital development connected to Oil and Gas Industry.

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