The Nigerian Content Development and Monitoring Board (NCDMB), has concluded the Access to Market Workshop for the first batch of Project 100 beneficiaries in Lagos.
The two- day programme which started on Wednesday, ended on Thursday focusing on the theme: “Facilitating Business Opportunities for Project 100 Companies”.
The NCDMB project targets indigenous companies offering seismic, marine, engineering, drilling, health and other services for oil and gas exploration and production companies, providing financial and non-financial as well as technical support and access to market for the beneficiary companies.
The beneficiaries provide services across 12 service segments (clusters) of the oil and gas industry,
In his welcome address, the Executive Secretary, NCDMB; Engr. Simbi Wabote explained that the Access to Market Workshop is organized by NCDMB to link Project 100 companies to buyers in the industry.
This, according to him, is in line with the financial and non-financial interventions structured for P100 Initiative.
He said, “Our motivation for hosting this Access to Market Workshop follows the positive outcome from similar workshop series held in 2020, which led to an overall on-boarding of 71 companies onto the Operator’s vendor list and award of contracts to 14 companies
“Project 100 was launched in January 2019 with 60 companies with the goal of ultimately nurturing 100 wholly owned service companies, to become larger-size enterprises. Our Commitment to achieving this objective remained resolute despite the COVID-19 pandemic and its socio-economic impact on our dear Nation and indeed the globe.
“The expectation is that the successful implementation of the Project 100 initiative would increase the contribution of the oil and gas sector to the nation’s Gross Domestic Product (GDP), create new jobs, deepen technology acquisition, increase retention of industry spend and substitute imports in the industry. All these indicators constitute the very essence of the local content law
“It is a global practice for Governments to play leading roles in engendering the growth of the private sector and creation of homegrown global conglomerates. Indeed, organizations like Samsung Heavy Industry and Schlumberger are excellent illustrations of how strategic support by their home Governments transformed the hitherto small local enterprises to become multinational companies.
“I have received the report of the impact assessment of the F60 companies, and I am pleased to observe improvements in the areas of governance, strategic planning culture, workforce development, business process re-engineering among others. To consolidate on these gains, we will continue to partner with sister agencies to create programs that will bolster the capacity of indigenous businesses. The Board will also be hosting a recognition event for Project 100 companies to share experience and recognize high performance.
“Beyond non-financial interventions, the Board developed financial schemes designed to provide funding for the expansion of indigenous businesses. Products such as the US$350m Nigerian Content Intervention Fund, the US$20 million Working Capital Loan scheme, the US$20 million Capacity Building Product, the US$50m Nigerian Content R&D Fund & $40 Million Women in Oil & Gas intervention fund are a clear indication of deliberate actions by the Board to spur the growth of service companies towards becoming regional and international players.
“While Government will continue to push far-reaching policies to create enabling business environment for service companies, the service companies have a corresponding responsibility to sustain development plans agreed upon during the co-creation sessions to become high performing competitive organizations
Engr. Wabote noted that the 100 companies for this program were selected through a transparent process anchored by KPMG, affirming that they have potentials for growth. He said that the tutelage from the program will enable them to emplace a resilient local supply chain that will outlive the current generation of founders.
He further said, “The era of briefcase contractors is behind us. The challenge now is to improve existing processes, innovate and position for maximum in-country value addition. The insights and exposures gained from Project 100 interventions are expected to drive the expansion of your current portfolio of service offering towards an integrated energy business model, in line with the global trend.
“The competition for projects continues to stiffen the survival of most companies. I will therefore seize this opportunity to advise on the need for individual companies to leverage on combined strengths by forming alliances and partnerships. Mergers and strategic collaborations have proven to facilitate the creation of large and more sustainable Organizations in many sectors.
“There is however some optimism as the fiscal framework contained in the PIA 2021 is expected to unlock Nigeria’s potential to achieve its targets of increasing oil production to 4mb/d and oil reserves from 37bbls to 40bbls, while also drawing on the country’s proven 206 TCF of natural gas reserves to provide clean and efficient energy. This will no doubt open enormous opportunities for the local supply chain.
“Another component of your personal development plans is to build capacity of your workforce through training and workshops for improved business performance, productivity and contribution to the national skills pool and employment for our youths. You need to take this very seriously especially now that Nigeria is getting set to launch its presence in emerging oil producing countries on the back of Africa Continental Free Trade Agreement.
“Some international oilfield technology companies whose annual revenue exceeds the budget of many Nations. An example is Schlumberger whose Revenue in 2020 was the equivalent of N10.2 trillion ; compared to Nigeria’s approved 2020 National budget of about N10 trillion Naira.
“Such Corporates like Schlumberger succeeded partly because they invested in Research and innovation. Therefore, to advance your competitive edge, you must also design your business model around investing in Product-driven research towards new product development and process improvement.
Engr. Bala Wunti, Group General Manager, National Petroleum Investment Management Services, (GGM, NAPIMS) in his charge to the 100 companies asked them to take advantage of partnership and collaboration in order to form a strong and viable force to deliver on projects.
According to him the business mentorship programme will expose them to what needs to be done to wins more contracts and execute world class projects.
He however confirmed that NAPIMS is partnering with NCDMB to develop local supply chain who would grow to become big players in the oil and gas sector.
He said, “Nigeria needs a viable and vibrant local supply chain to provide services to the International Oil companies and their local partners. NAPIMS has the guarantees that all the 100 companies possess the compendium of opportunities to participate in oil and gas industry. They will help to strengthen the Naira, create job opportunities and reduce capital freight.
“You need to form yourself into partners to build a resilient local supply chain in Nigeria local content space. We value the role of EPC Contractors as critical stakeholders in the oil and gas sector.
In strengthening their capacity the NAPIMS boss charged the Project 100 beneficiaries to always observe 5Cs which includes cooperation , collaboration, competence, compliance with extant laws, and competitiveness.
He charged them to avail themselves in the opportunity that the new assented Petroleum Industry Act(PIA) provides to partner with other community vendors and build capacity.
He also charged them to take advantage of the Federal Government’s Nigerian Upstream Cost Optimisation Programme (NUCOP) to confront the challenge of high production cost, adding that the reality dictated by the global energy transition and demand erosion occasioned by the Covid-19 pandemic has made cost optimization imperative.
Speaking on behalf of Fabrication and Construction cluster, Ose Ojemekele, Director, Androit Investment Limited, disclosed that he got the opportunity to join project 100, without knowing anyone having registered with NAPIMS.
He said, “KPMG, an international consulting firm later contacted us for training both locally and outside of the country. This is the kind of opportunities that I don’t know exist.
While commending the NCDMB for the initiative he charged the Board to help us create more project basket. He also assured the Oil Exploration and Production Companies of competence of all the Project 100 beneficiaries to deliver on every project, adding that most of them have access to fund to carry out any job.
Bina Okeke, Business Development Manager, Blisston Nigeria Ltd, head of Health, Safety and Environment Service (HSE) commended NCDMB, KPMG, and NAPIMS for creating opportunity for wholly owned indigenous Nigerian companies to create impact in the oil and gas sector.