In a bid to stimulate oil producing communities in the country to participate in the local supply chain of the oil sector, the Nigerian Content Development and Monitoring Board, NCDMB, said it planned to establish industrial parks in oil producing states in partnership with the state governments.
The development endorsed by the Governing Council of the Board under the Chairmanship of Mrs. Deziani Alison-Madueke, is intended to stimulate the participation of the communities in the local supply chain and provide a direct platform for collaboration with the original equipment manufacturers, OEMs, who are now required to manufacture a minimum proportion of components in Nigeria.
The Executive Secretary of NCDMB, Mr. Ernest Nwapa, who in Lagos last week at the Addax Executive Business Seminar on Nigerian Content, explained that the Board will collaborate with major operators, service companies and the relevant state governments to build industrial parks, which will support operations of the industry and help achieve service efficiency through shared services.
According to him, other benefits of the industrial park concept include the reduction of start-up investment costs for new businesses, stakeholders' collaboration and industry commitment to utilise manufactured products from industrial parks.
He said, "The parks will host manufacturing activities driven by the Oil and Gas industry demand but will certainly service other sectors of the economy as they grow organically into integrated industrial zones.
"The start-up product slate will include steel pipes and allied fittings, switch gears, panels, skids, pipe racks and brackets, environmental protection equipment, chemicals, industrial gases, computers, telecom and other ICT equipment components which includes Furniture, LPG cylinders, Bolts & Nuts, Drilling fluids."
Speaking further, Nwapa said that part of the strategy is to stimulate small and medium scale enterprises focused on oil and gas technology into sustainable engines for technological growth and employment at the grassroots level.
He noted that the major operators will benefit from increased entrepreneurial activities in their host communities, adding that the Board has reached out to the state governments to participate in an SME fair to enable it identify companies with potential to incubate and grow.
Nwapa further said, "In this way, over 100,000 productive jobs will be created across the communities for skills ranging from professional to artisanal and de-emphasise the social employment prevalent in the communities.
"The fair will identify SMEs with capacity which will be supported and accommodated in the new industrial parks to manufacture goods used in industry with the active involvement of the traditional OEMs.
"However, the Board will activate the provisions of the Act to provide specific incentives for OEMs that participate in the initiative such as locking in orders for equipment or components manufactured/assembled in these parks for extended periods."
He also disclosed that Nigerian companies had committed to invest over $600million in the manufacture and assembly of various equipments and components.