Nigerian Content Development and Monitoring
Board (NCDMB) has praised the management of Dangote (Petroleum Refinery
and Petrochemical Free Trade Zone Enterprises (DPRP) over its adherence to
the local content law in the execution of its projects and declared its
intention to further partner with it for effective implementation
of the Local Content policy in the country.
Director, Monitoring & Evaluation, NCDMB, Mr. Akintunde Adelana, who
represented the board’s Executive Secretary, Engr. Simbi Wabote, made this
disclosure weekend during the DPRP Nigerian Content Sensitization/Awareness
Creation Programme, titled: “Let’s Walk the Nigerian Content Talk Together,”
at Lekki Free Trade Zone, Lagos.
According to him, “the Dangote Refinery project is expected to close a major
gap in the supply of petroleum products in the country. We consider this as a
very important project and we are willing to partner with the company to
ensure full implementation of the local content policy. We embarked on this
journey with the company a long time ago and we are ready to partner with the
"Part of what you see to today is part of our efforts to ensure that the
company and its contractors comply with the local content policy and they
have put in a lot of efforts in this regard.”
Speaking further, Wabote described the Local Content Act as the quantum of
composite value added to, or created in the Nigerian economy by a systematic
development of capacity and capabilities, through the deliberate utilization
of Nigerian human, material resources and services in the Nigerian oil and
He said the country recorded loses prior to the enactment of the local
content policy, which he noted, came from jobs executed abroad by
International Oil Companies (IOCs), operating in the country.
“The narrative then was that nothing can be done in-country. Plants and
modules were fully fabricated offshore without any structure in place to
achieve knowledge transfer. Before 2010, we had no active dry-dock
facilities. The few we had were abandoned and left to rot away. Today, we
have four active dry docking facilities in Port Harcourt, Onne, and Lagos,”
He said the board’s mandate is to develop local capacity in key areas such as
manufacturing and fabrication and promote indigenous ownership of assets and
utilization of indigenous assets in oil and gas operations.
Wabote added that the board’s responsibility also include
linking the oil and gas industry with other sectors of
the economy, enhance multiplier effect of oil and gas investments in economy
and develop pool of competitive supply chain rooted in oil bearing
Reading riot acts to defaulters of the Nigerian Content Policy, Wabote said
non-compliance with the law, will result to the suspension of
projects/contracts, penalty of five per cent of project sum, withdrawal of
NCDMB’s services, and project cancellation unrecoverable sunk cost.
Other penalties for non-compliance, according to the Executive Secretary, are
escalation to other regulators to withdraw or suspend license, withdrawal of
approvals or de-classification of contractor from pre-qualification list,
application of the full weight of the law in accordance with Section 68, and
publication of non-compliant operators in newspapers and professional
Also speaking at the occasion, the Chief Operating Officer, DPRP, Mr.
Giuseppe Surace, said the programme was organized to create awareness among
the company’s contractors on the requirements of NCDMB, as part of moves to
ensure the local content policy take roots in their day to day
“The programme was organized to ensure that our contractors are well
informed about the Nigerian Content Act and this is expected to assist them
with the execution of not just the Dangote project, but other projects in
their portfolio,” he added.