FG Hails LADOL over Local Content Promotion

30 Nov 2012

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Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Mr. Ernest Nwapa

The Federal Government has hailed the Lagos Deep Offshore Logistics (LADOL) over its promotion of local content implementation in the country.

LADOL, which is situated off Apapa Container Terminal, Apapa, Lagos, was described as one of the signposts to the successes so far recorded by government in the administration of the local content law in Nigeria.

Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Mr. Ernest Nwapa, stated this in his opening remarks at the recent two-day local content evaluation forum which took place in the Bayelsa State capital, Yenagoa.

Tagged ‘Second Practical Nigerian Content Conference/Exhibition’, the forum was organised by the board in partnership with the Bayelsa Sate Government.

Speaking on the topic, ‘Nigerian Content Implementation, Successes and Challenges’, Nwapa averred that from the activities of some indigenous companies, it has become an easy task to monitor the achievement as well as challenges of the board.

Nwapa, who recalled that he had on several occasions made official visits to the LADOL Free Zone (LFZ), noted that the oil and gas logistics service base was a swamp only a few years ago. He expressed delight that the firm has now been transformed into a world-class project.

“The promoters of this wholly indigenous organisation should be praised for setting a remarkable example in the Lagos area. They have aspiration to succeed in standing out as an indigenous body, and they want to do things that would make Nigeria proud”, he said.
Pointing out that Nigeria cannot be rightly described as a great oil-producing nation for now, owing to the dearth of infrastructure, facilities and trained personnel, Nwapa said the situation has posed a challenge to the board, “because Nigeria has got all it takes to rank amongst the great nations-considering the enormous natural endowments and the human capacity”.

He disclosed that the board has started its reformative works on the premise of two options of strategic development, one of which is ‘revenue-focused in which operators seek the cheapest and fastest route to first oil’.

Under this option, he said government uses taxes and royalties for development with little attention to value addition from operators, which tends to promote importation of goods and services.

The second option, according to him, is “in-country value-focused, in which operators consider long term value. Under this model, government lowers revenue for higher in-country value that tends to promote development and use of local capacity”.

He said, to attain the desired goal, efforts must be sustained to engage in the manufacturing of industrial pipe mills, machine shops, fabrication, workshops, local services companies, drilling rigs, and marine vessels as well as the setting up of logistics bases such as offered by LADOL.
Nwapa disclosed that one of the strategies for achieving this lies in the provision offered by the Local Content Act for the collection of a one-per-cent of all contracts offered, into a fund that has now amounted to over $1 million.

The fund, he said would channel 30 per-cent of its pool to direct investment, while the remaining 70 per cent goes to guarantee limited for locally guaranteed projects.
Beside this, he said part of the 70 per cent would be channelled towards the setting up of an Oil and Gas training Centre of Excellence.

Tags: Business, Nigeria, Featured, FG, LADOL, Promotion

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