The Nigerian Content Development Monitoring Baord, NCDMB, has called for an accelerated programme of action to reverse investment apathy that has seen dwindling trend in project development in the oil and gas sector.
In an address delivered at the opening of the 4th Edition of the Nigerian Oil & Gas Opportunity Fair (NOGOF), with the
theme; “Oil & Gas Industry – Catalyst and Fuel for the Industrialization of Nigeria”, Executive Secretary, ES, of the Board, Simbi Wabote, on Thursday in Yenagoa Bayelsa State, said the theme reflects the pivotal role that the oil and gas industry is expected to play in driving the economic growth and development of Nigeria.
However, the ES, observed that 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 investments apathy.
“Just to set the context, I would like to draw your attention to the nation’s GDP growth rate between the years 2021 to 2022 as released by the National Bureau for Statistics (NBS).
“Over this period, the growth of the nation’s GDP 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.” he said
Speaking more on the apathy syndrome, Wabote, said that the NBS report noted that the total annual contribution of oil to aggregate GDP in 2022 was 5.67 per cent compared to 7.24 per cent in 2021.
The oil sector, according to him, has steadily dropped behind Agriculture, Trade, Telecommunications/ICT, and Real Estate in terms of sectors that contributed the most to Nigeria’s GDP.
These, he observed are signs of a dying sector, and all must 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.
Citing example, Simbi said 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 per cent followed by their hydropower.
Although Norway, he noted is in a different clime from Nigeria, he said Nigeria 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.
“It is my belief 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.
“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.
“In the aspect of creating opportunities, the NOGICD Act sets the minimum targets in 278 services across oil and gas value chain in the Schedule.” he said adding, “I have always referred to the Schedule of the NOGICD Act as a compendium of opportunities waiting for any serious investor to tap into.”
He noted that the schedule lists out 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.
Wabote, further stated that beyond the core oil and gas activities related to Exploration and Production, there are several related activities enable by our industry such as security, insurance, medicals, ICT, legal services, aviation, catering, and several others.
