The Nigerian Content Development and Monitoring Board (NCDMB) has call for the listing of more companies that add value to the Nigeria’s hydrocarbon resources in-country such as refineries, petrochemical industries, fertiliser firms.
The Executive Secretary, NCDMB, Simbi Wabote made the call when he led the management of the board on a visit the Nigerian Stock Exchange (NSE) to perform the Closing Gong Ceremony in Lagos yesterday.
Wabote commended the NSE, saying it is playing a vital role in the economy by serving as a means of wealth creation, wealth distribution, and source of long-term financing even as the businesses listed on the exchange use their products and services to meet the needs of our people.
He, however, said most of the companies listed under the oil and gas sector of the NSE are into marketing of petroleum products.
“We will like to see more of the upstream and mid-stream companies listed on the exchange. More importantly, we will like to see a major shift in the listing of companies that add value to our hydrocarbon resources in-country such as refineries, petrochemical industries, fertilizer companies, and companies in the liquefied petroleum gas/compressed natural gas value chain,” he said.
According to the NCDMB boss, this will be a game-changer in the operating model of “our oil and gas industry as it gives room for pooling together of funds for growth as well as the empowerment and inclusion of Nigerians in the activities of the mainstay of our economy.”
Wabote disclosed that the board recently launched its 10-year strategic roadmap designed to increase the Nigerian content level in the oil and gas sector from the current level of about 30 per cent to 70 per cent by 2027.
“This means retention of about $14 billion in the Nigerian economy out of the yearly spend of $20billion. This target represents huge opportunities for investors in the Nigerian economy. We see opportunity to collaborate with the NSE to increase the depth and breadth of listings using our 10-year strategy as a driver. For us in the Board, we have commenced multiple strategic initiatives to bring the roadmap into fruition,” he added.
Wabote noted that the vision of the board is to be a catalyst for the industrialisation of the Nigerian oil and gas industry and its linkage sectors.
“One of our focus areas is to serve as a catalyst for in-country resource utilization. To this end, we have taken 30 per cent equity in a 5,000bpd modular refinery. Other similar proposals for the establishment of modular refineries are under review. We reckon that at least 10 per cent of Nigerian oil production should be refined using modular refineries. As a regulator, we have put in place our exit plans from these investments. We see opportunity to divest such equity via the Nigerian Stock Exchange so that Nigerians and other investors can be part owners of such enterprises. We are also looking at providing support other opportunities such as the LPG value chain, industrial fabrication, and manufacturing using our oil and gas park schemes,” he said.
He said this kind of partnership would boost activities in the stock market, increase the listing of Nigerian companies on the stock exchange, and help foster businesses with enduring legacies.
The NCDMB was established by the Nigerian Oil and Gas Industry Content Development Act which came into effect on April 22, 2010. Its vision is to be the catalyst for the industrialisation of the Nigerian oil and gas industry and its linkage sectors, a mission to promote the development and utilisation of in-country capacities for the industrialisation of Nigeria through the effective implementation of the Nigerian Content Act.