BUSINESS
Local Content: NCDMB Holds Knowledge-Sharing Session with Mozambique
From Mike Tayese, Yenagoa
In keeping with Nigeria’s leadership role in the development of Local Content in Africa, the Nigerian Content Development and Monitoring Board (NCDMB) has concluded a two-day Local Content development experience-sharing session with a delegation from Mozambique’s national oil company, Empresa Nacional de Hidrocarbonetos (ENH).
The engagement was held on the sidelines of the 8th Sub-Saharan Africa International Petroleum Exhibition & Conference, in Lagos.
NCDMB’s delegation was led by the Executive Secretary, Engr. Felix Omatsola Ogbe, while Mozambique’s team was led by the Chairman of Empresa Nacional de Hidrocarbonetos, Mr.
Estevao Rafeal Pale.The experience-sharing session was facilitated by Aberdeen Global Strategies & Solutions, under the leadership of Dr. Mark Osa Igiehon, who consults for ENH Mozambique.
In his introductory comments, the Executive Secretary conveyed NCDMB’s commitment to supporting African oil-producing nations in developing and implementing local content policies as a strategy for improving indigenous participation and value optimization from hydrocarbons and mineral resources.
He lauded the giant strides recorded by Mozambique in its gas sector and advised against repeating the mistakes made by Nigeria in the early years of its oil and gas industry.
Represented by the Director of Monitoring and Evaluation, NCDMB, Mr. Abdulmalik Halilu, the Executive Secretary explained that every oil and gas-producing nation must choose to either focus on optimizing revenue generation or maximizing in-country value from the activities of the industry.
He stated that the revenue generation option encourages oil and gas operators to seek the cheapest and fastest route to first oil, while the Government collects maximum revenue in the form of taxes and royalties for development and pays little attention to value addition from industry operations.
He explained that the alternative option focuses on maximizing in-country value and promoting the development and use of local capacities. This model obligates operators in the industry to consider long-term value, while the Government takes lower revenue in exchange for higher in-country value and pays greater attention to life-cycle support for operators.
Speaking further, the NCDMB boss listed key parameters that are critical to in-country value addition and growth of the oil and gas sector on a sustainable basis. These factors are Regulatory Framework, Gap Analysis, Capacity Building, Funding and Incentives, Research and Development, and Access to Market.
He hinted that a Local Content policy backed with appropriate legislation is very fundamental in local content practice, adding that baseline and periodic gap analyses are essential to determine gaps that need to be closed in the areas of skills, facilities and infrastructure.
He also stressed the need to develop in-country capacities and capabilities and utilise them through oil and gas projects.
The knowledge-sharing programme also featured a presentation on Funds and Funding of NCDMB, delivered by the Director of Finance and Personnel Management, NCDMB, Dr. Obinna Ofili.
The Director was represented by the Head, Credit Analysis and Risk Management, Mrs. Chika Enwerem–Okidi, and underlined the need for dedicated funding that would be applied to developing local content in the oil sector.
The Director mentioned that the Nigerian Content Development Fund (NCDF) is provided for in section 104 of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act and is contributed by 1% of every contract awarded in the upstream section of the oil and gas industry.
He added that the NCDF has been deployed in several successful projects, including the building of human and material capacities, the $350 million Nigerian Content Intervention Fund, the ongoing development of the Nigerian Oil and Gas Parks Scheme (NOGAPS), the construction of the NCDMB 17-story corporate headquarters, and 3rd party investments, many of which created jobs for Nigerians and yield interest for the Board.
The second day of the knowledge-sharing programme featured presentations on the operating framework for planning, research and statistics, capacity building, projects certification and authorization and monitoring and evaluation.
The Director of Projects Certification and Authorization, Engr. Abayomi Bamidele highlighted NCDMB’s role in the award of contracts for oil and gas projects and how opportunities are captured for the local economy, using the Nigerian Content Plan and the Contracting Strategy submitted by operating companies for the Board’s review and approval.
He underlined that local content should be promoted as a national agenda for every country and the right data must be collected to establish current realities and gaps to the target.
He emphasised the need for in-country capacity building based on areas of strengths and weaknesses as well as continuous projects to keep the developed capacities engaged.
The knowledge-sharing programme was very interactive and the Mozambican officials sought clarifications on the Board’s model of enforcing Local Content Compliance, monitoring projects, supervising third-party investments, and many other areas.
The programme was convened in line with the Sectorial and Regional Market Linkage Pillar of the Nigerian Content 10-year strategic roadmap. The roadmap requires NCDMB to support other African oil-producing countries and to develop new markets and partnership opportunities for the benefit of competent Nigerian operating and oil service companies.
NCDMB has provided similar guidance to numerous African nations, including Senegal, Tanzania, and Uganda.
By Tony Obiechina, Abuja
Development Bank of Nigeria (DBN) has conferred its 2023 Award for Microfinance Bank with the Highest Impact on Start-Ups on Richway Microfinance Bank in recognition of its unwavering commitment to fostering entrepreneurship in the country.The award also attests to the micro lender’s dedication to empowering small businesses and driving economic growth through innovative financial solutions.
Since its inception, Richway Microfinance Bank has been at the forefront of providing accessible financial services to underserved communities. The bank’s focus on start-ups, particularly in the challenging economic landscape of Nigeria, has set it apart as a leader in the microfinance sector. By offering tailored loan products, savings and investments products with high returns, and business advisory services, Richway has enabled countless entrepreneurs and business owners to turn their ideas into thriving businesses.In 2023, the bank’s impact on start-ups was particularly profound. Through strategic partnerships and an in-depth understanding of the unique challenges faced by new businesses, Richway Microfinance Bank extended its reach, offering critical support to over 500 start-ups.These initiatives not only provided much-needed capital but also helped entrepreneurs and business owners build sustainable business models, manage risks, and scale their operations.Speaking on the award, the Managing Director of Richway MfB, Adenrele Oni, said the “DBN’s award represented a significant milestone for Richway in its sustained efforts to boost Nigeria’s economy and reflected the bank’s role in driving innovation and entrepreneurship, which are key drivers of Nigeria’s economic diversification efforts.”According to him, the award also underscores the importance of microfinance institutions in bridging the financial inclusion gap, particularly for small businesses that often struggle to access traditional banking services.While thanking the DBN’s management on the recognition of the micro lender’s support for MSMEs in 2023, Oni reiterated the bank’s commitment to continuing its mission of empowering entrepreneurs and contributing to Nigeria’s economic development.He assured: “As Richway Microfinance Bank celebrates this achievement; it remains focused on the future, with plans to expand its offerings and reach even more start-ups in the coming years.”
By Tony Obiechina, Abuja
The Nigerian Economic Summit Group (NESG) on Tuesday held a pre-summit webinar in preparation for the 30th Nigerian Economic Summit.The webinar, themed “Closing Gaps and Adapting to New Economic Conditions,” brought together key stakeholders to explore strategies for addressing the decline in Nigeria’s education sector and adapting to current economic reforms.
The goal was to develop actionable policies and measures that address both immediate and long-term challenges in the sector. Education is fundamental to a nation’s development, directly impacting its economic and social stability. However, Nigeria’s education sector is currently facing significant challenges, such as unequal access to quality education, a mismatch between the skills taught and those needed in the labor market, and a lack of digital technology integration.Closing these gaps is vital for creating a more inclusive and competitive education system. This pre-summit event aimed to explore how collaborative efforts can promote inclusive development and drive innovation in education, thereby contributing to the broader objectives of NES #30.By focusing on inclusive growth, innovation, and digital transformation, the event set the stage for developing strategies that address both immediate and long-term educational and economic needs. This approach aims to bridge the gap between education and the labor market, equipping students with the necessary skills for meaningful employment in a dynamic economy.In her opening remarks, NESG Board Member Wonu Adetayo highlighted that Nigeria’s literacy rate stands at 62%, with significant disparities between urban and rural areas. The nation’s education sector faces substantial gaps, particularly in eliminating barriers to completing primary education, which is at 35% in rural areas compared to 80% in urban areas.Adetayo underscored the importance of addressing education challenges such as unequal access, the mismatch between the school curriculum and industry needs, and integrating digital technologies into education systems. She noted that over 50% of graduates are underemployed due to the disconnect between education and labor market needs. With over 40% of Nigerians aged 15 to 35, it is crucial to provide access to quality education and skills development to reduce unemployment risks.Adetayo emphasized that digital tools can enhance learning, but the digital divide must be addressed. Only 36% of schools have access to digital learning, and there are still challenges related to inadequate teacher training and infrastructural deficits.”Closing these gaps is essential for building an inclusive and competitive education system, which could boost Nigeria’s GDP by 10%. The event focused on creating a holistic framework to leverage technology and foster inclusive growth, with an emphasis on actionable recommendations” she noted.Head of the Secretariat at NESG’s Triple Helix Roundtable, Prof Bolanle Ogunbamila, shared insights on fostering effective collaboration between industry, academia, and government to address the skills gap and drive innovation.He noted the importance of promoting continuous education and facilitating an exchange of ideas between academia and industry. Professor Ogunbamila also highlighted the need for an immersion program to remove policy and regulatory barriers.Head of Startups at Lagos Innovates, Lagos State Employment Trust Fund (LSETF), Dr. Hakeem Onasanya, discussed the importance of leveraging the start-up ecosystem and funding models. He emphasized that the quality of education affects everyone, and when it fails, society as a whole suffers.Onasanya pointed out that startups play a crucial role in attracting the right talent and that the curriculum should align with workforce needs. He suggested establishing tech hubs in tertiary institutions and reducing internet costs for students. Additionally, he recommended incentivizing students through alumni associations to encourage them to give back to their schools.Founder of The Education Partnership (TEP), Dr. Modupe Adefeso Olateju, presented evidence-based policy recommendations for closing the skills gap. She noted that about 18.3 million children are out of school from the primary to senior secondary levels.A study by the TEP Centre in 2018 found that 55% of children in JSS3 can only read at the level of a child in Primary 2. Dr. Olateju reiterated the mismatch between the curriculum and labor market needs and the necessity to invest in programs that enhance skill competencies in schools, foster critical thinking, and utilize tools to scale up learning.She also highlighted the lack of sufficient capacity to absorb skilled and competent individuals within the country and stressed that skill development must be adequately funded.Chief Executive Officer of Isa School of Education, Dr. Joy Isa, discussed best practices in delivering inclusive and quality education. She emphasized the critical role of teachers in education quality, noting that teachers account for a 30% variance in student learning outcomes. Dr. Isa highlighted the shortage of qualified educators in Nigerian communities and the need to address this issue to improve education quality.Overall, the pre-summit webinar emphasized the need for a holistic and collaborative approach to addressing the challenges in Nigeria’s education sector. By bridging gaps and adapting to new economic conditions, Nigeria can ensure sustainable economic growth and social stability.
Investors’ sustained interest in MTN Nigeria, Zenith Bank, and FBN Holdings, among other key stocks, drove the Nigerian Exchange Ltd. (NGX) market capitalisation to a gain of N270 billion or 0.48 per cent.
Specifically, the market capitalisation, which opened at N55.708 trillion, closed at N55.
978 trillion.The All-Share Index also advanced by 0.
48 per cent, or 476 points, to settle at 98,592. 12, compared to 98,116.27 recorded on Thursday.As a result, the Year-To-Date (YTD) return rose to 31.87 per cent.
Market breadth closed positive with 38 gainers and 18 losers.
On the gainers table, ABC Transport, Eterna Plc, Julius Berger, and United Capital led by 10 per cent each to close at 77k, N19.
80, N110 and N15.95 per share respectively.Mecure followed closely with 9.94 per cent to close at N8.52 per share.
On the other hand, Union Dicon Salt led the losers’ table by 9.88 per cent to close at N7.30, UPL trailed by 8.97 per cent to close at N2.18 per share.
Custodian dropped 8.59 per cent to close at N11.70, Omatek lost 7.14 per cent to close at 65k and Axa Mansard declined by 6.85 per cent to close at N5.03 per share.
Analysis of the market activities showed trade turnover settled lower relative to the previous session, with the value of transactions down by 46 per cent.
A total of 477.44 million shares valued at N8.17 billion were exchanged in 9,529 deals, against 791.78 million shares valued at N15.13 billion exchanged in 9,059 deals posted in the previous session.
Veritas Kapital led the activity table in volume with 103.24 million shares valued at N125.59 million, while Oando led the table in value with 52.39 million shares worth N2.13 billion. (NAN)
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