Nigeria saves $2b on LNG local content dev’t

Nigeria has saved $2 billion on Engineering Procurement and Construction (EPC) contract for Nigeria LNG Train 7 Project through the Nigerian Oil and Gas Industry Content Development (NOGICD) Act implementation.

Mr Simbi Wabote, Executive Secretary, Nigeria Content Development and Monitoring Board (NCDMB), disclosed this in a statement signed by its Corporate Communications and issued to newsmen on Saturday in Lagos.

He spoke at a workshop held for the judiciary via zoom which drew over 117 participants, including Justices of the Supreme Court, Appeal Court, National Industrial Court, Federal High Court and external solicitors.

Wabote said that ample evidence had proven that sustainable Local Content practice reduced the cost of oil and gas projects in addition to creating job opportunities and economic prosperity.

He gave example with the LNG Train 7 EPC bid, where Saipem Contracting Nigeria and its consortium, won the contract with lower bid, leveraging on 50 years commitment to local content and investments in Nigeria.

“In the concluded LNG Train 7 project contract awarded, the difference in price between Saipem that had established itself in Nigeria and the second lowest bidder coming from outside the country was $2 billion.

“That’s a huge sum of money that this country would have lost if not for the drive for the development of local content.

“The other consortium had no footprint in the country and it proposed to put extra $2 billion on the back of the project to develop local capacity to execute the project.

“This is evidence of cost savings associated with the development of local content, ” he said.
Wabote noted that developing local content and building capacity would always entail some costs at the beginning.

According to him, such costs ultimately gets reduced overtime and creates jobs and stability in the polity.

He also clarified that the focus of Nigerian Content implementation was not Nigerianisation, rather it encouraged domiciliation of capacities and promotion of foreign direct investments and home grown investments.

The executive secretary said the NOGICD Act would always protect investments in the country, adding that companies that built capacities were given first right of refusal in industry projects.

“The law is a protective instrument for businesses. There are cable manufacturers in Lagos.

“If there is any opportunity to supply cables to oil and gas companies in Nigeria, those companies have the right of first refusal,” he said.

Also, the Chief Justice of Nigeria, Justice Tanko Muhammad, described the implementation of local content policies across the globe as an apparatus through which citizens of oil rich countries derive value from crude oil resources.

Muhammad thanked NCDMB for enhancing the judiciary capacity to dispense justice from an informed and contemporary position, particularly as it related to Local Content development and oil and gas operations.
E-Auction: Customs gives out 314 vehicles for N238,922,246

A total of 314 vehicles amounting to N238,922,246 has been won as August 25, 2020 in the ongoing electronic auction of seized vehicles by the Nigeria Customs Service.

National Public Relations Officer for the service, Joseph Attah, who announced this, said that 187 bidders have paid in N151,022,245, while a total of N87,900,001 was disclosed as total reserved bid amount yet to be paid.

While reiterating the integrity and transparency of the process, Attah said complaints about the auction centred on areas outside Customs control like poor network at some bidders locations, invalid tax identification numbers and other issues.

He stated in the statement that “Since the reopening of the Nigeria Customs Service e-auction platform, some complaints and inquiries have been pouring in, especially from those who tried unsuccessfully due to either invalid Tax Identification Numbers (TINs), inability to service e-wallet, poor network at their locations or any other reason which are all outside the jurisdiction of the Service.

“Some of these complainants appeared to have questioned the integrity of the e-auction process.

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