Many Nigerians are no longer interested in acting as agents for foreign partners, but “were investing alongside their partners, learning how to manage the business and operate complex equipment, repair and even do research and development,” according to Ernest Nwapa, Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB)
The NCDMB was established following the signing into law in April 2010 of the Nigerian Content Act, which is designed to enhance the participation of Nigerians and Nigerian companies in the country’s oil and gas industry.
Nwapa was speaking recently in Port Harcourt, the Rivers State capital, at the opening of a workshop facility set up by Benkline Nigeria Limited to repair oil and gas pumps and refurbish and refit mechanical seals, gear boxes and associated equipment. Benkline is an independent oil field service company, which was formed and is wholly owned by Nigerians.
The executive secretary said Nigerian investors’ newly developed bullish attitude validates the wisdom of President Goodluck Ebele Jonathan in signing the Nigerian Content Bill into law as well as the commitment of the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, in supporting its implementation in a structured and sustainable manner.
“We are happy that the industry has come to accept this as a way of life and we no longer have to push and pull in all directions. What is going on today is a continuous collaboration between the government and the industry, between Nigerian companies and original equipment manufacturers (OEMs).”
Nwapa dispelled the notion that the Board was forcing OEMs to set up in Nigeria, stressing that the local oil and gas industry provided sufficient business to justify investments in-country.
“A few years ago, we were told that a lot of oil and gas equipment was very intricate and if not well used could cause disasters in the oil and gas industry. But valves are now being taken out, tested, maintained here, and put back successfully.”
Nwapa commended Benkline for successfully partnering with OEMs – Norway’s Frank Mohn AS and France’s Eurofiliases – to deliver hi-tech services to the oil and gas industry, adding that the Board was promoting the same policy under its Nigerian Oil and Gas Park Scheme (NOGAPS) as a strategy to get OEMs to work with small and medium-sized enterprises and mentor them to manufacture some of their components.
He said new investments made by Nigerian service companies had reached US$5bn in the past four years, and that this development pointed to massive investments coming into the industry in the next five years.
In his welcome address, Larry Osai, Chairman of Benkline, advised Nigerian investors to partner with persons and firms that can contribute resources and knowledge in order to grow their companies and leave legacies. He commended the company’s partners for buying into the Nigerian Content policy and helping Benkline maintain a good presence in the oil and gas industry, adding that the new workshop will close the gap in the quality of service for the maintenance of rotating equipment.
