‘Dangote Refinery opens up partnerships

The Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Felix Omatsola Ogbe has said the Dangote’ 650,000-barrel-per-day Integrated Refinery and Petrochemical Company, would afford Nigeria and other African countries partnership opportunities for sourcing petroleum products and fertiliser. 

He stated this at the ongoing 9th Sub-Saharan African International Petroleum Exhibition and Conference (SAIPEC), in Lagos.

According to Ogbe, similar projects capable of leveraging collaborations included Kenya’s Konza Technology City, Grand Ethiopian Dam, Lekki Free Trade Zone (Lagos), and facilities like the SHI-MCI FPSO Fabrication/Integration Yard, in Lagos.

Others highlighted by the Executive Secretary were NCDMB’s Nigerian Oil and Gas Parks Scheme (NOGAPS) being developed in seven locations in Nigeria, to which he invited interested businessmen and investors seeking to manufacture industry-related equipment, components and spares to apply.

He also highlighted the importance of the African Continental Free Trade Agreement (AfCFTA) as a critical legal framework that could be leveraged to achieve collaborative local content strategy in Africa, given the free trade area it has created by integrating 1.3 billion people across 54 African countries with a combined gross domestic product of over $3 trillion.Ogbe therefore charged sub-Saharan African nations to keep pace with unfolding trends in the global oil and gas industry and adopt a unified approach in strengthening local content development, advancing industrialisation and fostering sustainable continent-wide economic growth.

In a Keynote Address the Executive Secretary noted that nations like Nigeria, Angola, and Ghana had made notable strides in the local content development by boosting indigenous participation in the oil and gas sector, but expressed the regret that “fragmented implementation continued to hinder collective progress.”

He called for a collaborative strategy among petroleum-producing nations in sub-Saharan Africa that would foster the sharing of best practices and enhance cross-border partnerships that could drive the competitiveness of indigenous players. In a paper entitled: “Sub-Saharan Africa Local Content Collaboration Strategy,” Ogbe identified harmonisation of local content policies, human capital development, investment in infrastructure, funding for local companies and technology transfer, as key pillars to Africa’s collaboration strategy.He stressed the need to develop a robust local content framework that positions the region for long-term economic prosperity which could be fostered “through the collaborative efforts of APPO (African Petroleum Producers Organisation) and the United Nations Economic Commission for Africa and the African Union.”

On human capital development, which he described as pivotal to the successful implementation of local content, he said  approximately 60 per cent of Africa’s population was currently under the age of 25, and that this teeming population provided a unique opportunity to fast-track development. “A large, young workforce can drive expansion through increased productivity and expansion,” he noted.

Speaking on funding, Ogbe said aregional fund or financial framework that provides credit facilities, guarantees, and investment incentives would strengthen indigenous firms, noting with satisfaction that an African Energy Bank, established by APPO with the support of the NCDMB, which has taken equity investment in it, is soon to be operational.

In regard to technology transfer and innovation, he said: “Encouraging joint ventures, research collaborations, and technology-sharing agreements among African nations will drive the adoption of cutting-edge solutions and indigenous technological advancements in the African economy.”

The overall strategy he discussed envisaged roles for the academia and research institutions, which must collaborate on industry-driven research, innovations, and skills development.

He said: “By working together, we can create a formidable and self-reliant petroleum sector that delivers long-term benefits for our economies, businesses, and people.”

Earlier, in a Pre-Event Session, the Director, Monitoring and Evaluation of the NCDMB, Abdulmalik Halilu, delivered a paper on “Optimisation of Developed Capacities and Capabilities in Africa for the Growth of African Oil and Gas Industry.”

In the presentation, with illustration from Africa’s Hydrocarbon Map, he discussed Local Content Value Proposition for Africa, Concepts, and Way Forward.

Under Local Content Value Proposition, he highlighted research and technology development, local employment, strategic partnerships, ownership and control of assets, while Supply Chain Optimisation threw light on sustainable operations, increased production and utilisation of locally made goods, and contribution to GDP.

Under Way Forward for Sector-Specific Industrialisation, Halilu charged petroleum-producing countries to “identify and develop niche industries, promote specialisation and value addition, establish export-oriented economic zones.”

For trade and regional integration under AfCFTA, his suggestion was, “Harmonise trade policies and regulations, develop efficient transport and logistics networks, export expansion grant to companies promoting intra-Africa trade.”

‘Dangote Refinery opens up partnerships - The Nation Newspaper