The Nigerian government has announced the launch of an Oil and Gas E-Marketplace, a significant provision of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act. In a statement released on Monday evening, the Nigerian Content Development and Monitoring Board (NCDMB) and the Nigeria LNG Limited disclosed this development.
Engr. Simbi Kesiye Wabote, the Executive Secretary of NCDMB, revealed that the rollout of the Oil and Gas E-Marketplace project would be conducted in phases, commencing with the Nigerian LNG Limited.
The Oil and Gas E-Marketplace, as defined under Section 106 of the NOGICD Act, is a virtual platform that facilitates transparent and swift transactions between buyers and sellers of goods and services in the oil and gas industry. Wabote emphasized that this provision, enacted in 2010, had not been implemented until now.
Speaking at the Nigerian Content Seminar during the Nigerian Oil and Gas Energy Week (NOG 2023) held in Abuja, Wabote stated that the establishment of the Oil and Gas E-Marketplace project would be executed in stages. A joint working committee, comprising members from the Nigerian LNG Limited and the Board, has been formed to create a blueprint for the initial phase. Subsequent phases will involve representatives from the Oil Producers Trade Section (OPTS), Independent Petroleum Producers Group (IPPG), and other stakeholder groups.
Wabote emphasized that the E-Marketplace is crucial in developing local capacities and capabilities within the oil and gas industry. He further explained that the NCDMB has undertaken several initiatives to support this goal, including the $300 million Nigerian Content Intervention Fund in collaboration with the Bank of Industry (BoI), the $100 million Matched Fund with NEXIM Bank, the $50 million R&D Intervention Fund, and the $50 million NOGAPS Manufacturing Fund. Additionally, the Board has partnered with local businesses to establish modular refineries, gas processing plants, LPG storage facilities, Base Oil production plants, LPG depots, refilling plants, and other ventures, with clear exit plans once the predetermined objectives are achieved.
The NCDMB also reported that Industrial Parks are being developed in seven states, namely Akwa Ibom, Bayelsa, Cross River, Delta, Edo, Imo, and Ondo. Notably, the NOGAPS Industrial Parks in Odukpani (Cross River) and Emeyal-1 (Bayelsa) are in advanced stages of completion and will commence operations in 2024.
Highlighting the progress made in promoting indigenous participation in the oil and gas sector, Wabote noted that local content in Nigeria’s industry has surged from 26% in 2017 to an impressive 54% in 2022. This achievement reflects the significant strides made in the last five years since the implementation of the NCDMB Strategic Roadmap.
The launch of the Oil and Gas E-Marketplace is expected to provide a transparent and efficient platform for transactions within the industry. It aims to further enhance local participation, foster economic growth, and solidify Nigeria’s position as a key player in the global oil and gas market.
