The recently launched 10-Year Research and Development Roadmap by the Nigerian Content Development and Monitoring Board (NCDMB), is a right step in the right direction, writes SAIDU ABUBAKAR
The technocratic expertise of the Nigerian Content Development and Monitoring Board (NCDMB) has manifested further, following the recent launching of the Board’s 10-year Research and Development (R&D) Roadmap by the Minister of State for Petroleum Resources, Chief Timipre Sylva. Other landmark achievements, were the commissioning of a Technology and Incubation Centre, inauguration of the R&D Council as well as the launching of a $50 million R&D Fund, with an 8-member council (for the Fund) drawn from within the oil and gas industry inaugurated by the Minister. All these were part of the activities during the NCDMB’s Second R&D Fair/Conference that was held at the Content Tower, Oxbow Lake Road, Swali in Yenagoa, Bayelsa State on September 9, 2021.
Numerous dignitaries and various other participants were in attendance in the 1000-seater Conference Hall of the Content Tower, venue of the event, which could have witnessed somewhat larger crowd, but for the insistence of the NCDMB to strictly observe the COVID-19 protocols. A total of about 1,041 physical and virtual participants were recorded by the organisers as having attended the event themed: ‘Creating Sustainable Collaboration in Research and Development for the Energy Sector’.
Highlights of the Fair include an eloquent speech that was delivered by the Bayelsa State Governor, Douye Diri, who was represented by his deputy, Senator Lawrence Ewhrudjakpo, which attracted a standing ovation. The state government relentlessly laid bare its sentiment which includes, among others, a call for the International Oil Companies (IOCs) to, as a matter of urgency, relocate to the Niger Delta region.
The Minister’s speech, the opening remark by the Executive Secretary of the NCDMB, Engr. Simbi Wabote, as well as a tour of the numerous exhibitors’ stands, who displayed their technological breakthroughs, formed part of the highlights of the event.
In a keynote address at the one-day event, Chief Sylva, who was represented by the Permanent Secretary of the Ministry, Dr. Nasir Sani Gwarzo, said that putting certain realities into context, there was a need to do a comparative analysis.
Currently, developed nations, such as the USA, China, Japan, Germany, and South Korea spend between 2.5 per cent and 4 per cent of their annual gross domestic production (GDP) on R&D, while developing nations, like India, Malaysia, Brazil spend between 0.7 per cent and 1.2 per cent. Nigeria lags well behind, by spending only about 0.2 per cent of its GDP on R&D. He lamented that the underfunding of R&D reflects on Nigeria’s over-dependence on foreign goods and services.
“This is unsustainable if we are serious about building a national technological capability that will drive economic growth. It is my firm belief that this trend can be mitigated through a collaborative approach to research and innovation,” he remarked.
Still on funding, and in line with the commitment to provide leadership, the Minister officially announced the creation of the ‘Nigerian Content Research and Development Fund’, with an initial seed capital of $50 million. The fund is designed for application in the following areas, as earlier elaborated by the ES, NCDMB: a. The establishment of Research Centers of Excellence, b. Funding support for Research Commercialisation, c. Funding support for Basic and Applied Research, and d. Endowment of professorial chair.
Sylva reiterated that a research and innovation ecosystem thrives better with strong collaboration between government-industry and academia.
“Accordingly, I am pleased to inform you of my approval of the reconstitution of the Nigerian Content Research and Development Council (NCRDC), made up of: a. Dr. John Erinne (representing PETAN), b. Mr. Ijuwe Albert (representing OPTS), c. Mr. Rosario Osobase (representing PCTS), d. Dr. Noel Biodun Saliu (representing NUC), e. Alhaji Aliyu Adamu (representing NBTE), and f. Dr. Tandama Adamu Abu (representing NOTAP).
“The Council will be headed by the ES (of) NCDMB, while (the) NCDMB will provide the Secretariat support,” he stated.
He formally inaugurated the Council for a tenure of two years, expecting that the Council, consisting of seasoned experts from the industry, government and academia, will consolidate on the gains that have been made so far, to proffer sound policies that will shape the direction of NCDMB’s research interventions.
“Indeed, this conference is loaded, as I will shortly be commissioning the NCDMB Technology Incubation and Innovation Centre. A Centre that will provide the platform for idea generation, incubation and acceleration of innovative ideas to the marketplace. Looking at history, innovation does not emanate from giving people incentives. It comes from creating ecosystems where ideas can connect. I will, therefore, invite all (the) industry stakeholders and our teaming youths to take advantage of this Centre to foster adaptation of existing solutions, and create new solutions that (will) address major industry challenges. To consolidate on entrenching lasting infrastructure legacies, I am pleased to inform our stakeholders that, in June 2020, Mr. President approved the establishment of the Oloibiri Museum and Research Centre (OMRC) as part of his signature projects for the Niger Delta, and indeed, the oil industry.
“The scope of the OMRC project consists of a museum, where historic developments, data, equipment, and tools (that are) used in the Nigerian oil and gas industry will be stored for posterity. There will also be a functional Research Test Centre, where prototypes can be tested and validated, in fulfillment of the requirement for (the) approval of new technologies. This landmark facility for testing research prototypes will close a major gap in our quest for homegrown technology. The OMRC is a collaboration between NCDMB, PTDF, Shell and the Bayelsa State government. I have been informed that the Certificate of Occupancy (CoO) for the land will soon be issued by His Excellency, the Governor of Bayelsa State. Once we cross this milestone, I will be performing the groundbreaking ceremony to mark the construction of a major infrastructure in the heartland of oil discovery in Nigeria,” the minister added.
He expressed confidence that the combined impact of the fiscal, governance and developmental provisions that are contained in the Petroleum Industry Act (PIA), and the major infrastructure and institutional support to R&D will lead to a new energy industry that is resilient, adaptive to gas-based energy transition, and a source of pride to all compatriots.
Diri reiterated the state government’s commitment to continuous provision of the enabling environment for growth and development as evidenced by the various projects in the state – ranging from the gas turbine to the gas cylinder manufacturing company, and then the Shipyard Industry that will be at Brass.
“We also want to remind the (NCDMB’s) ES that it will be good to balance the equation by looking westwards as he tries to put some of the projects on the ground, because the state is made up of east-central and the west. As a man, who mounts this podium, we speak from two ends – while we commend, we also demand. That’s why I’m playing my role as a government – commending and demanding,” Diri said.
The governor said that, in the congregation (event), the prayer is R&D. The role of R&D cannot be over-emphasised, hence a problem cannot be solved with the same level of thinking that created it.
“And for you to solve the problem, the thinking must be above the thinking that created the problem. That’s the objective of R&D, and we are happy today that we are taking the first concerted step towards ensuring that we improve on our local content, in terms of what we can do for ourselves.
“I’m also happy today that the government and stakeholders have come together to keep integrity. Where we are today is good. Where we will be tomorrow will be better, with R&D. and where we will be next tomorrow will be the best. Thanks, a journey of a thousand miles begins with a positive thinking that leads you in the right direction.
“As a government, we will be willing to make our own contributions, not necessarily financial, but the creation of a conducive environment, because it’s what you have available that you use to welcome the king when he visits you. So, we are creating an enabling environment with this R&D initiative which is key to us. Let me mention here that we should be more localised than we have been.
“Bayelsa State government and the Niger Delta region still feel not very satisfied with what we are seeing in the Nigerian oil industry. We feel very shortchanged, in terms of what we get, despite the efforts we’ve made to ensure that there’s peace and tranquility in the industry. But as per the 3 per cent provided by PIA, we are quite satisfied, even as we think that an amendment will not be a wrong thing to think of.
“…we believe that it’s unfair for the IOCs to come to Bayelsa to do all jobs, but yet, the payee income tax is collected in Lagos (State),” Diri inferred.
Dwelling on the objective behind the Fair/Conference, the Executive Secretary of the Board, Engr. Simbi Kesiye Wabote, in an opening remark, reminded participants that the Board’s activities regarding promotion of research and development in the oil and gas industry is in line with the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010, stressing that the authors of the Nigerian Oil and Gas Industry Content Development Act of 2010 recognised the importance of R&D and included key provisions in the Act.
According to Wabote, sections 36, 37, 38 and 39, of the NOGICD Act are specifically dedicated to promoting R&D. For example, Section 37 states that, for every project for which a plan is submitted, an operator shall carry out a programme, and make expenditure to the satisfaction of the Board for the promotion of education, attachments, training, R&D in Nigeria, in relation to its work programme and activities.
Aside from the provisions, the Board commenced the implementation of the 10-year Strategic Roadmap in 2018, which seeks to increase the level of Nigerian content in the oil and gas industry to 70 per cent by the year 2027. The 10-year Roadmap consists of five pillars and four enablers. The pillar on Technical Capability Development contains initiatives to further drive the delivery of R&D in the oil and gas industry. The enabler on research and statistics cover the initiatives required to conduct research in key areas to generate new evidence to address industry knowledge gaps and operational challenges.
“In order to drive these initiatives, we created a full division in one of our directorates to implement the initiatives and the provisions (that are) contained in the NOGICD Act. This way, we ensure fulfilment of our mandate, and enhance delivery of our target of 70 per cent Nigerian content target. So far, the roadmap implementation has increased Nigerian content level to 35 per cent from the 26 per cent level in 2017.
“Once upon a time, it would have been unthinkable that I would be standing here in Yenagoa, while conference participants can hear and see me live by clicking a link on their devices. Such capabilities were associated with witches and wizards, and it could only happen under the cover of darkness. These days, we are more or less taking such capability for granted. The 4th Industrial Revolution (4IR) has made it possible to order for a private jet from your handphone or see who is at the door of your home in Lagos, while you are on a business trip to Abuja. All these are made possible via Research and Development, and we have not seen the end of it. There will be more industrial revolutions down the line, and the question is why are we not at the forefront of the discoveries or innovate to adapt existing technologies to our needs?” Wabote asked.
He also remarked that analysis of global practices of R&D revealed that the combined R&D spend of just five countries makes up 63.5 per cent of the entire global R&D spend. He enlisted the five countries as: USA, China, Japan, Germany, and India. They are also observed to have accounted for over 50 per cent of the global GDPs, pointing out that Africa, on the other hand, accounted for less than one per cent of the global R&D spend, while its GDP is only 3 per cent of the global GDP.
“You will agree with me that there is a nexus between the spend on Research and Development and economic prosperity. The industrial revolutions triggered by Research and Development have always served as a means of wealth transfer.
“According to Statistica, as of the second quarter of 2021, around 67 per cent of Apple’s revenue was generated outside of the United States. Apple’s total net sales amounted to around 90 billion US dollars in that quarter. Therefore, it is time to start to nurture the growth of our home-grown technology rather than just being a wholesome consumer of other people’s innovation,” he added.
While making an overview of the conference, the General Manager, Research, Statistics and Development, Alhaji Abdulmalik Halilu, revealed that, for every dollar that is spent on R&D, translates to prosperity, growth and productivity, and of course, ultimately employment.
The Fair provided the platform for the Hon. Minister of State for Petroleum Resources, Chief Timipre Sylva, who was ably represented by the Permanent Secretary in the Ministry, Dr. Nasir Sani Gwarzo, to launch the NCDMB 10-year R&D Roadmap, commission the Technology and Incubation Centre, inaugurate the Research and Development Council, and also launch the $50 million R&D Fund.