Nigeria Needs Local Capabilities To Achieve Energy Security— NCDMB

The Executive Secretary of the Nigerian Content Development and Monitoring Board, Simbi Wabote, has said that the fight against food shortages and energy security will fail if the country does not upscale local capabilities.

Wabote said this on Monday at the Nigerian Content Seminar held in Abuja.

The 2022 edition of the Nigerian Content Seminar focuses on the Seven Ministerial Regulations officially gazetted by the Federal Government in 2021 and how they could be utilized to strengthen the practice of Nigerian Content.

” One of the key lessons of the events in the last one year is the need to develop and sustain local capacities and capabilities to tackle issues of energy security, food shortages, insufficient vaccines, and other socio-economic disruptions,” said Wabote.

Nigeria is facing an energy crisis with the cost of diesel almost doubling over the last one year to around N850/ litre. The price of 12.5kg of Liquefied Petroleum Gas (Cooking Gas) increased from N7,000 in September 2021 to N9,400, as of May 31, 2022.

Nigeria has faced severe fuel scarcity despite interventions by the Nigerian National Petroleum Company. The products are mostly sourced externally through purchases or swap deals.

Nigeria’s four refineries in Kaduna, Warri and two in Port-Harcourt are undergoing turn around maintenance, but the government is hoping on Dangote’s 650,000 barrels per day Refinery to tackle both energy problems and salvage the country from foregn exchange spending on importation of petroleum products.

The Executive Secretary noted that the NCDMB in collaboration with the National Insurance Commission, developed and issued the Insurance Guideline for the oil and gas industry.

He said the guideline would contribute in promoting the development of insurance services in-country and it will also drive the retention of financial spending in Nigeria, thereby contributing towards reversing capital flight.

He added, “The guideline will also help to create a database of all insurance programs procured by operators, project promoters, alliance partners, and Nigerian indigenous companies, to enable the Board to monitor utilization of in-country insurance capacity.”