The inaugural edition of the Nigerian Content Investment Forum, NCIF, focused attention on promoting partnerships and collaboration between Original Equipment Manufacturers, OEMs, and Nigerian Small and Medium scale Enterprises, SMEs. The objective was to get prospective OEMs to take ample advantage of the Oil and Gas parks scheme of the Nigerian Content Development Monitoring Board, NCDMB.
Nigerian Oil And Gas Industrial Park Scheme (NOGIPS)
The Nigerian Oil and Gas Industrial Parks Scheme, NOGIPS, is a capacity development initiative to establish physical infrastructure and create enabling environment for low cost production of goods, domiciliation of capacity, technology acquisition, training, creation of employment opportunities and structured community participation.
The Industrial Parks when established would be a significant milestone in the continued quest for achieving effective participation of the local supply chain in the Oil and gas sector. The beneficiaries of the scheme would be Operating Companies, Multinationals, Small and Medium Enterprises, SMEs, Original Equipment Manufacturers, OEMs, and Oil producing States.The Nigerian Content Development Monitoring Board, NCDMB, is determined through NOGIPS to elevate local SMEs to OEMs that produce industry standard high tech equipments for the oil and gas industry under a shared service and resource optimisation model. The Industrial Parks would thus provide a direct platform for collaboration with the original equipment manufacturers that are now required to manufacture/assemble components in Nigeria, enhance competitiveness of locally made goods and increase utilization in the Oil and Gas industry.
Moving towards sustainable development presents tremendous challenges. Important structural changes are required for countries to effectively manage their economic affairs. For any country to have sustainable economic growth, development of infrastructure and participation of indigenous companies must be encouraged. Therefore, Infrastructural development should be a key priority in Nigeria’s journey towards development of the Oil and Gas industry and there should be a more strategic approach to tackling inability to meet the demands of the industry.
In April 2010, President Goodluck Jonathan signed the Nigerian Oil and Gas Industry Content Bill into law to mark a new beginning to support Oil & Gas operations, create the platform for industrialization through the development of critical facilities and infrastructure and accelerate development of indigenous capabilities supporting the Oil and Gas industry.
As is synonymous with NCDMB’s innovative spirit and ability to adapt to the latest trends of the manufacturing world, the Board has conducted benchmark studies on how other countries developed capacity for local production of critical goods used in their most strategic sectors. One of such models is the establishment of Industrial Parks. NCDMB plans to establish world class industrial parks in strategic communities with proven oil reserves. The aim of these industrial parks is to bring economic gains to the door step of oil producing communities.
Looking at the current process of transformation of the Chinese economy, the Chinese Government has dramatically changed their country for the better through the establishment of Industrial Parks in different special economic zones. China’s industrial Parks are engines of the country’s booming economy. Initially 15 Industrial parks were established and subsequently authorities expanded the parks. Today, China has about 7,000 Industrial Parks. The primary objective was to attract direct foreign investments and to jump-start an export-led national growth strategy. This has proved to be immensely successful because china has become one of the fastest growing developing zones in the world and the third most developed economy in 2012 by GDP after USA and combined economies of EU (source: CIA world Factbook 2013).
The Board continues to receive tremendous encouragement from the government and the ministry of petroleum resources in the implementation of this scheme and we have already received offers for land from states that have keyed into the scheme. In the next few weeks we shall hold an SME fair to select SMEs with strong manufacturing pedigree. They will be supported to form Joint ventures with international OEMs that are currently supplying equipments to the oil and gas industry. These JVs will form the core of business enterprises operating (manufacturing) within the park under a shared services and resource optimisation model.
The Industrial Parks when operational, shall bring forth the following benefits; a) create at least 3,000 job opportunities per location, b) attract international vendors with full complements of know-how and technology to the doorstep of oil producing communities c) enhance cost and schedule efficiency of the local supply chain without compromising standards d) attract social and infrastructure amenities to oil producing communities e) meet government’s local content aspirations especially in the areas of in-country value addition, employment generation, technology acquisition and foreign direct investment f) deepen frontiers of Research, development and innovation within Nigeria g) Boost manufacturing and utilisation of made in Nigeria equipments in the oil and gas industry.
An open invitation is extended to the Original Equipment Manufacturers, OEMs, targeted for the 2015 NCIF. Interested OEMs shall however be required to indicate their disposition to attend to enable us make provision to accommodate their attendance.
Letters indicating interest to attend should include a company profile of the OEM and the names of two representatives who will be in attendance. The letter should be addressed/mailed to:
Plot 2191 Osiefa Crescent,
Amuwo Odofin, GRA,
7800 Commerce Prk Dr.
Houston, Tx 77036