May 26, 2024

Wabote seeks deliberate investment in Nigeria’s petroleum industry to return oil, gas sector GDP contributions to double digits 

Oredola Adeola

The Nigerian Content Development and Management Board (NCDMB) has called for intentional collaboration and aggressive investment in the oil and gas industry to stop the decline and return the sector’s contribution to aggregate Gross Domestic Product (GDP) to double digits levels.
Simbi Wabote, Executive Secretary, NCDMB challenged the oil and gas industry regulators, investors and other critical stakeholders, in his remark in his opening of the 4th Edition of the Nigerian Oil and Gas Opportunity Fair (NOGOF) 2023, a biennial event, which kicked off on Thursday in Bayelsa State.

 Nigeria’s aggregate Gross Domestic Product (GDP) to double digits and to achieve a level of economic advancement and industrialisation.
According to him Nigeria’s oil sector’ total annual contribution to aggregate Gross Domestic Product(GDP) in 2022 which was 5.67% compared to 7.24% in 2021, shows signs of a dying sector, which must be stopped through intentional collaborations by all stakeholders.
He said, “The contribution of the oil and gas sector has dropped steadily behind Agriculture, Trade, Telecommunications/ICT, and Real Estate in terms of sectors that contributed the most to Nigeria’s GDP.
“These are signs of a dying sector, and we must all join hands to stop the decline so that we can return oil and gas contribution to GDP to double digits levels similar to other major oil-producing countries.
Emphasising the theme of the biennial event.  “Oil & Gas Industry – Catalyst and Fuel for the Industrialization of Nigeria”, the NMDPRA ES said oil and gas industry plays a pivotal role in driving the economic growth and development of Nigeria.
Wabote said, “Of late, this role expected of the oil and gas industry has been dwindling due to missed opportunities as a result of policy inconsistencies, deferred decisions, and investment apathy.
“Nigeria’s GDP growth rate between the years 2021 to 2022 as released by the National Bureau for Statistics (NBS), has been marginal, but the reality is that we need to drive the growth rate to double digits for us to achieve the level of economic advancement and development that we desire.
“For instance, Norway has doubled its GDP in the last 2 years from $171.2 Billion to $367 Billion with the oil and gas sector contributing about 20% followed by their hydropower.
“Although Norway is in a different clime from Nigeria, we share some similarities when we look at the huge deposits of natural resources coupled with a skilled labour force and the adoption of new technology that made Norway a prosperous country during the twentieth and twenty-first centuries.
Wabote further emphasised that the oil and gas sector can serve as the catalyst that will enable us to achieve the desired double-digit GDP growth rate if we are bold and disruptive in our strategy.
He hinted that one probable means through which double-digit GDP growth can be achieved is by harnessing the array of opportunities that exists in various categories enabled by the oil and gas industry.
Speaking about opportunities that the NCDMB has contributed through the NOGICD Act, Wabote stated that the Board has set the minimum targets in 278 services across the oil and gas value chain.
He said, the Schedule of the NOGICD Act as a compendium of opportunities is waiting for any serious investor to tap into.
According to her, “The schedule lists the various activities in the oil and gas industry and sets out the desired level of Nigerian content for which any discerning investor can position himself or herself for patronage.
“Beyond the core oil and gas activities related to Exploration and Production, there are several related activities enabled by our industry such as security, insurance, medicals, ICT, legal services, aviation, catering, and several others.

“We have therefore designed NOGOF to showcase opportunities in the Upstream, Midstream and Downstream sectors of the Petroleum Industry.
“Provide the opportunity for foreign and local investors to build synergies in the Nigerian oil and gas industry and to provide Nigerian companies and prospective investors an opportunity to showcase their capabilities.
He noted that NOGOF has provided stakeholders with information on upcoming projects to enable Nigerian companies/manufacturers to tailor their business development strategies, as well as to identify high-impact activities with potential for in-country value addition with a 5-year outlook to deepen the practice of Nigerian Content.