Nigeria Bans Importation Of Vessels Without Local Content

The Federal Government has placed ban on vessels purchased abroad without inputs from local ship builders in Nigeria.

 Executive Secretary, Nigerian Content Development Monitoring Board, NCDMB, Ernest Nwapa, at the weekend said such vessels would not be allowed to operate in the country from January 2015.

  This policy, according to him, is aimed at developing local capacity in line with the local content initiative of the Federal Government.

Nwapa, stated this at the load-out celebration of the Domestic Supply Obligation (DSP) Meren Gas Gathering Compression Platform (GGCP) and Sonam Non-Associated Gas Well-head Platform projects fabricated at the Snake Island, Lagos.

   This new law, Nwapa said, becomes necessary in light of the fact that a number of Nigerian companies have developed the capacity to manufacture high quality vessels that meet international standards.

  He said, “From January 2015, companies seeking to buy marine vessels that will work in the Nigerian territory must submit the Nigerian Content plan of the purchase, so that we determine which part of the vessels would be manufactured in Nigeria.

  “Any company that fails to abide by this new rule, when the vessel is purchased it will not be allowed to work in Nigeria.”

  Nwapa however called for increased patronage of local companies by the international oil companies in the execution of their major projects.

  He said Nigerdock has demonstrated the ability of Nigerians to provide facilities and skilled manpower required for the execution and delivery of major projects.

   Meanwhile, The Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, has stated that the implementation of the Nigerian Content law is yielding the desired results.

   Alison-Madueke, who disclosed this at a Nigerian Content forum in Yenegoa, Bayelsa State, stated that the signing into law of the NOGICD Act was borne out of the need for Nigeria to be actively engaged in the exploration and production activities of the oil and gas sector in a bid to harness the abundant potentials of this strategic industry towards achieving significant in-country value-addition, employment generation and capital retention.

  She said since its inception, the NOGICD Act had enhanced job creation and the development of indigenous human and technical expertise.

  According to her, this had further stimulated other sectors of the economy and would continue to positively impact Nigeria’s Gross Domestic Product (GDP).

    “This is underscored by the growth of Nigerian content from an abysmal three to five per cent before the inception of NOGICD Act to between 12 and 18 per cent. This is indeed a massive improvement,” she said.

According to her, since the implementation of the marine vessel utilisation strategy in 2013, there has been a marked growth in the number of Nigerian owned vessels that are doing business in the oil and gas industry.

   “For instance, out of 1,000 marine vessels that were captured by the Nigerian Content Development and Monitoring Board (NCDMB) in 2013, 49.5 per cent were in category ‘A’ that is, either built in Nigeria or owned by Nigerians. Also, out of 1,232 vessels captured as at the third quarter of 2014, 89.2 per cent were in category A (and class AAA),” she added.

   She disclosed that at least two additional dry-docking facilities would be required within the shortest possible time for vessel maintenance and ship repairs in view of the growing economic and maritime activities in Nigeria and West Africa.