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NCDMB seeks revival of Nigeria’s steel industry to boost local content

L-R: Dr. Ginah Ginah, Corporate Communications and Zonal Coordination, NCDMB; Mrs Anna Akpan, Asst. Director, Shipping Dev. NIMASA; and Mr. Anya Njoku, President of MARAN at a seminar on Local Content Development organised by MARAN in Apapa.

Nigerian Content Development and Monitoring Board (NCDMB) has disclosed that
Nigeria does not have an efficient iron and steel industry, which is
responsible for huge capital flight from 
the importation of iron and steel used in the nation’s oil and gas

however advised the federal government to revive the nation’s iron and steel
industry to boost local content and oil and gas production in the country.

Executive Secretary of NCDMB, Engineer Simbi Wabote disclosed this in Lagos Tuesday
while presenting a paper at a sensitisation seminar on Local Content
Development in Shipping, Oil and Gas Logistics Operations in Nigeria, organised
by the Maritime Reporters Association of Nigeria (MARAN).

by Dr. Ginah Ginah, General Manager, Corporate Communication and Zonal
Co-ordination, NCDMB, Wabote enumerated many achievements recorded by the organization
and noted that lack of production of steel locally was among the challenges slowing
down oil and gas industry from recording the expected growth.

maintained that non-passage of the Petroleum Industry Governing Bill by the
President and high cost of production have pushed back investors from investing
their money in the sector, saying that production of oil and gas in Nigeria is
the costliest in the world, which has made the minister of petroleum call for
reduction in costs of oil and gas exploration.

country does not have an efficient steel industry and everything in oil and gas
industry requires steel. Nigeria is losing a huge foreign exchange to
importation of steel. Steel used in the industry is imported; government has to
do something to revive iron and steel industry. Local content in the sector
will jump to 50 per cent if we produce steel locally,’’ he said.

also noted that most of the pipelines transporting petroleum products were weak
as a result of many decades of usage and not necessarily damaged by militants.
said that the industry was confronted with shortage of research institutes as
most of the oil and gas researches used to develop and carry out exploration
were usually done abroad. He said that most of the Nigerian universities that
could have produced manpower for the industry were running outdated curricular
which has made their products inadequate to take rightful positions in the
to him, oil and gas industry is a specialised industry and NCDMB is in the
process of establishing research institutes that will be domiciled in four
universities in the country and also in discussion with the National University
Commission on the review of curricular of petroleum studies. He noted that the
establishment of the research institutes would save the country foreign
exchange being spent on researches abroad.

on how to mitigate the impact of these challenges on the growth of the
industry, Wabote informed that the organisation had set aside 200 million
dollars as Nigerian Content Intervention Fund (NCIF) and domiciled with the
Bank of Industry, which the bank would give out as loans to local investors at
an 8 per cent interest. 
added that the essence of the NCIF is to save the industry from foreign
dominance and provide fund to empower and boost capacity of Nigerian
participants in oil and gas production.

expressed displeasure that the disbursement of the loan by Bank of Industry was
very slow as only three stakeholders had benefited.

in his welcome address, Mr. Anya Njoku, President of MARAN, noted that the
essence of the seminar was for stakeholders to exchange ideas on how to revive
complexities associated with local content operations in shipping, oil and gas
and operational logistics.
maintained that it was very important for the country to take over operations
in these sub-sectors to enable Nigerians make gains of these sub-sectors while
calling on Armed Forces – Army, Navy, Police and even Customs to work in line
with the Nigerian constitutional provisions and standards set by the
International Maritime Organisation (IMO) and other international organisations
on how to conduct smooth commercial shipping and logistics in the nation’s sea
and waterways.        

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