The Nigerian Content Development and Monitoring Board (NCDMB) has canvassed stakeholders’ support towards reversing negative trends in Nigeria’s energy sector.
The Executive Secretary of the NCDMB, Engineer Felix Omatsola Ogbe, in a paper, titled “Resolving the Nigerian Energy Trilemma: Energy Security, Sustained Growth, and Affordability,” at the 42nd Annual International Conference and Exhibition of the Nigerian Association of Petroleum Explorationists (NAPE) in Lagos, identified “alarming scale of pipeline vandalism and theft of crude oil” as the biggest threats to Nigeria’s energy security.
He stressed that major oil and gas projects are required as well as a robust security strategy based on mutually beneficial collaboration with host communities to combat the menace.
According to him, the Board has already undertaken to work with stakeholders in the industry to dedicate one week in every calendar year to signing Final Investment Decisions (FIDs) on new projects, as prospective investors could be motivated to act expeditiously to meet agreed-upon deadlines and regulators are similarly encouraged.
Engr. Ogbe said that FDIs would catalyze new projects in the Nigerian oil and gas industry, and that fruitful collaboration amongst stakeholders and NCDMB would actualize the intentions of the Presidential Directives that were rolled out in March 2024 by the Presidency, “to fast-track the contracting cycle and incentivize investments in our sector.”
The NCDMB boss, who was represented by the General Manager, Corporate Communications and Zonal Coordination, Mr. Esueme Dan Kikile, Esq., suggested that the FDI Week be incorporated into any of the major oil, gas and energy conferences being held in the country.
According to him, the Board holds a similar biennial event called Nigerian Oil and Gas Opportunity Fair (NOGOF), which is attended by all the international and indigenous operating companies to share awareness of opportunities and projects to be executed.
On the Board’s strategy to create a safe and secure operating environment for oil and gas companies and thus eliminate the huge costs associated with vandalism and attacks on personnel and installations, the Executive Secretary disclosed that NCDMB has introduced a new policy known as “Back to the Creeks Initiative.” “We are convinced at the Board that the incessant tampering with crude oil pipelines and hostilities in oil-producing communities have a huge impact on energy security.”
He stressed that the new initiative is geared towards curtailing incidences of disruptions of oil industry operations through targeted interventions.
“These include execution of corporate social responsibility projects in communities, provision of affordable finance to local contractors, upgrade of basic educational facilities in villages and communities, building the capacity of teachers and improving the infrastructure at that level.
“The initiative, whose details would soon be publicized, is expected to create a stakeholder feeling in host communities and make them view industry assets around them as facilities that are bound up with their socio-economic well-being.
“Such an orientation would translate into safety of assets, increased crude oil production, drastically reduced security costs and more favourable pricing of petroleum products.”
