By Gideon Osaka
In today’s interconnected global economy, the importance of market linkages cannot be overstated. For any sector to thrive, it is imperative to establish robust connections within and beyond its borders. Recognizing this, the Nigerian Content Development and Monitoring Board (NCDMB) has been at the forefront of fostering sectorial and regional market linkages, driving economic growth and collaboration in Nigeria’s oil and gas industry.
The NCDMB, established under the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010, has a mandate to promote the development of Nigerian content in the oil and gas sector. The board’s mandate encompasses capacity building, technology transfer, and the promotion of local participation in the industry. In line with these objectives, the NCDMB has been actively working towards establishing strong market linkages at both the sectorial and regional levels.
Sectorial market linkages refer to the strategic connections established between different sectors within an industry, while regional market linkages emphasize the importance of integrating local businesses and communities into the supply chain. The NCDMB has recognized the significance of these linkages and has implemented a range of initiatives to bridge the gaps, creating a more inclusive and vibrant ecosystem. Such arrangements were identified in the Nigerian Content 10-Year Strategic Roadmap under the pillar of Sectorial and Regional Market Linkages.
Sectorial and regional market linkages, in the NCDMB philosophy, will increase industry contribution to the National GDP and facilitate access of Nigerian-made goods and services to regional markets.
At the sectorial level, the Board has been instrumental in driving collaboration among various stakeholders within the oil and gas industry value chain. By encouraging partnerships between international oil companies (IOCs), indigenous companies, and service providers, the Board has facilitated knowledge sharing, skills development, and the transfer of technology. One of the key initiatives by the NCDMB in fostering sectorial market linkages is the Nigerian Oil and Gas Opportunity Fair (NOGOF). This annual event brings together stakeholders from across the industry, providing a platform for networking, showcasing capabilities, and exploring business opportunities.
In terms of regional market linkages, the NCDMB recognizes the importance of driving economic development and sustainability and has actively promoted regional market linkages. The Board has been effectively pushing the regional marketing of some of the infrastructure being developed such as the FPSO Integration facility and has continued to emphasize the need to explore the opportunities that lie in other African countries, that will lead to domiciliation of industrial oil and gas activities in Nigeria in particular and Africa in general.
This is especially after Nigeria had built huge capacities in-country which are not being matched by local opportunities and projects.
Over time, the Board has continued to tell sister African countries that it is unnecessary to go to America, Europe and Asia for oil and gas capacities that exist in the continent, an example is the FPSO integration facility in Lagos, which other sister African countries, can share the benefits, reduce costs and grow together, especially with the spirit of the African Continental Free Trade Area (AfCTA).
The Board’s advocacy and persistence in this regard has started yielding some results as the governments of Nigeria and the Republic of Equatorial Guinea opened discussions regarding new partnership opportunities such as the establishment of a joint logistics base, deployment of indigenous capacities across countries, and lowering the costs of major oil and gas operations.
This is in addition to the ongoing discussions on collaboration with countries like Angola, Ghana, Sierra Leone, Senegal, Kenya, Mali, Mozambique, Niger Republic, Uganda, and many others as we seek strategies and compare notes in our local content journey.
The latest partnership possibilities were discussed recently when the Minister of Planning and Economic Diversification of the Republic of Equatorial Guinea, Mr. Gabriel Mbega Obiang Lima led a delegation to engage the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi KesiyeWabote at the Board’s liaison office in Abuja.
Conversations at the meeting centred around inviting reputable Nigerian oil and gas service companies to establish their operational bases at Equatorial Guinea, whereby the companies would use the country’s ports to launch their activities in neighbouring countries such Gabon, Cameroon, and Angola. The Minister promised to send a formal request on the partnership to the NCDMB, adding that the support of government institutions would be needed before such business opportunities could be explored successfully.
Mr. Obiang Lima complained about the exorbitant cost of key oil and gas operations in the Gulf of Guinea suggesting that operators in Nigeria and Equatorial Guinea could lower their costs significantly by collaborating in the scheduling of their respective work programmes such as mobilization and demobilization of drilling rigs and other assets.
He hinted that the proposed business relationship and pooling of demand profiles were necessary to attract key investments. This is because big companies like General Electric would only invest in a jurisdiction if they were assured of markets from neighbouring countries.
In his comments, the Executive Secretary of the NCDBM noted that both nations have collaborated closely in the energy sector in recent years and representatives of the Portuguese nation have participated in several Nigerian oil and gas conferences and visited some oil and gas facilities as well. He confirmed that the Board and Nigerian oil and gas service companies are keen to participate in the proposed collaboration. He further explained that Nigerian service companies had developed surplus capacities in several key areas, hence it is imperative to explore opportunities across the Gulf of Guinea, where their expertise and collaboration with players from those nations are needed.
He assured that NCDMB “will galvanise Nigerian service producers under the Petroleum Technology Association of Nigeria (PETAN) and make sure they come with us to your conference, and we will synergize.” He added that “there is no need going to US or Singapore. We can work out areas where we can partner. It might be in the marine sector, logistics base. There are huge opportunities.”
By creating opportunities for regional market linkages, the board is nurturing a vibrant and competitive industry, positioning Nigeria as a global player in the oil and gas sector while ensuring that the benefits are felt by all stakeholders, including local communities and businesses. Moving forward, it is crucial to continue supporting and expanding these market linkages to unlock the full potential of Nigeria’s oil and gas industry and drive the nation’s overall economic development.