Politics
THE federal government has provided $50 million incentive to investors in the oil and gas sector to utilise the facilities provided at the oil and gas industrial park to boost manufacturing in the country.
The Nigeria Oil and Gas Industrial Park, NOGAP, is a major initiative of the federal government’s effort to boost the Nigerian economy by maximising opportunities in the oil and gas sector through local content drive to increase in-country manufacturing capacity for equipments needed for oil and gas exploration.
Realnews reports that NOGAP is important given the energy transition focusing renewable energy to the detriment of fossil fuel which at the moment is the highest revenue and foreign exchange earner for the country. NOGAP is especially important because of the fear that Western country will stop manufacturing technology for oil and gas exploration as they push for clean energy and reduction of carbon emission as a result of crude oil exploitation.
The Industrial Park in Odukpani, Cross River State, is a project of the Nigerian Content Monitoring and Development Board (NCDMB). being set up in various parts of the country. Use
Addressing the media at the project site on Thursday, May 11, Ginah O. Ginah, General Manager, Corporate Communications and Zonal Coordination Division, NCDMB, said for 55 years of the Nigerian oil industry prior to 2010, there was no visible local content in the sector.
The Nigerian oil industry was dominated by expatriates who provided men and materials needed to keep the oil industry in operation.
However, in 2010, the administration of former President Goodluck Jonathan signed the Nigerian Oil and Gas Industry Content Development Act that birthed the NCDMB.
Ginah said the first task was for NCDMB to build the capacity of its staff and companies in the oil and gas sector.
He noted that the NCDMB has taken the local content in the oil and gas sector from 5% prior to 2010 to 54% at present, adding that the target is to take it to 70%.
One way of achieving the target, he said, is to start manufacturing oil and gas industry components and parts. This dream is set to be achieved with the Odukpani Park, which is ready for habitation.
The model, he said, is that each industrial park will produce a different set of components and parts for the oil and gas sector. Ginah said the cost of operation will be relatively low as the companies that will operate in the Park will share a common manufacturing floor, common security arrangement, common power supply in this case natural gas.
He informed that NCDMB is currently in the process of looking at the applications of companies that want to set up manufacturing plants in the Odukpani Industrial Park. He said the Board will look at the applications and approve those that meet its requirements.
He said to power heavy machines natural gas is cost effective compared to other options.
Adebayo Sunday, project manager of the Odukpani Industrial Park, said the park has facilities to make operations of companies habiting in the park smooth. These include banking hall, clinic, security, manufacturing floors, water treatment plant, helipad, power supply, etc.
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Tags: Nigeria Oil and Gas Industrial Park NOGAP
