Nigerian content policy saves $2bn in NLNG Train 7

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Nigeria was saved the sum of $2 billion dollars from the ongoing Train 7 of the Nigeria liquefied Natural Gas (NLNG) project as a result of using Nigerian firms, Mr Simbi Wabote, Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB).

The News Agency of Nigeria (NAN) reports that Wabote, stated this on Friday, shortly after receiving the award of African Local Content Icon, from the African Leadership magazine, in Yenagoa.

The Nigerian content policy saves costs, from the projects that the NCDMB have supervised it is clear that it is better for the International Operating Companies in Nigeria, but foreign interests at global levels erroneously say that local content is expensive,” explained Mr Wabote. “Before the move to increase the participation of Nigerians in the oil and gas sector, the participation was at about three per cent, and previous administrations relied mostly on taxes and revenue and lost sight of the opportunities for Nigerians to get involved in the sector.

On the Train 7 project, “if you look at the cost provided by foreign companies, you have a wide gap of about $2 billion from the quotations of the lowest submitted by foreign firms and the highest from Nigerian companies, so local content is better” ensuring there was no compromising of quality, he pointed out.

From 2010 till now, we have come a long way. For instance, NLNG had 90 per cent of the workforce as expatriates, but today 90 per cent of the workers are Nigerians, with some even occupying top positions in foreign oil firms,” Mr Wabote added. “I am thankful to President Muhamadu Buhari, who gave me the opportunity to practice local content in the public sector by appointing me in 2016 and reappointing me in 2020.