Former Minister of State for Petroleum Resources, Prof. Emmanuel Kachikwu, on Monday canvassed the increase of the Nigerian Content Intervention Fund (NCI Fund) from $450million to $1billion, to cater for the funding of mega oil and gas projects, setting up of pipe mills, and manufacturing of other critical equipment needed in the oil and gas sector.
He also recommended that oil and gas producing companies should provide timelines for developing oil and gas blocks, same conditions for firms that win industry contracts based on commitments of investments.
He made these recommendations at the business mentorship lecture series organised virtually by the Nigerian Content Development and Monitoring Board (NCDMB).
The event drew nearly 500 participants via Zoom and the board’s YouTube page.
Kachikwu, who served as the chairman of NCDMB’s governing council from September 2016 to May 2019, stated that a larger NCI Fund will provide seed capital for developing blocks, accessing technology, skill sets, and equipment.
According to him, the fund should include contributions from operators and other investors in the sector and not just government resources.
The former minister regretted that many awardees of oil blocks in Nigeria treat them like certificates of occupancy for land, causing huge losses to the nation.
He advised the federal government to cancel oil blocks that are not developed after a prolonged period.
He said: “We need to find a way to force performance in the industry. Some companies get contracts to import pipelines with the proviso to invest locally. We need to begin to produce this equipment.
Read also:
- Nigerians Sidelined While Expatriates Thrive: Why Nigeria’s Local Content Law must be enforced
- Host community integration key to achieving 70% Nigerian content by 2027 — NCDMB Boss
- Analysts canvass FG’s intervention to avert collapse of wheat value chain
“You have to show the joint venture that you are setting up to produce pipes, where is the foreign partner with the funds and technology? You need to give a timeline.”
Commenting on the global investments space and how Nigeria can attract funding to the energy sector, the former minister argued that “there is a lot of money waiting to be tapped; however, it is only going to countries where there is a perception of regularity.”
He opined that Nigeria’s image needs to improve, adding that the federal government needs to create the right investment climate to attract investment.
“There is enough investment money out there if you have a holding of hands. They need to portray Nigeria as the place you can put money and get good returns,” Kachikwu added.
He also urged the federal government to consider co-investing with private companies if there are good prospects of returns.
The former minister commended the Executive Secretary of NCDMB, Felix Ogbe, for upholding the agency’s mission and recording significant strides since assuming office.
He reflected on his pivotal role in shaping the NCDMB, emphasizing that advancing local content was a core pillar of his tenure as minister and chairman of the NCDMB board.
Earlier, the NCDMB’s Director of Capacity Building, Abayomi Bamidele, representing the executive secretary, underscored the business mentorship lecture series’ role in fostering trends and mindsets for excellence.
He said the lecture series was organised in furtherance of the board’s mandate as stipulated in Sections 67 and 70 of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010, to hold workshops and seminars to promote and advance local content.
