Nigeria to save $20bn annually as first Oil and Gas park moves to commence operations

By TOM CHIAHEMEN –

Nigeria stands a chance to save over $20billion annually as the first oil and gas parks located in Odukpani, Cross River State and Yenegoa in Bayelsa State, are set to open their doors for business.

Built by the Nigerian Content Development & Monitoring Board (NCDMB), the industrial parks are envisioned to rapidly increase the level of involvement of the nation’s oil and gas companies in the development of human capital and manufacturing technology.

Director of Corporate Communications of the NCDMB, Engr Ginah O. Ginah, who made this known during a media tour of the park located in Odukpani on Thursday, said the multi-million-dollar facility, started about 10 years ago, was now ready for habitation.

Dr. Ginah

He said: “We have already advertised for interested manufacturers and are presently going through applications to see those who are qualified.”

According to the NCDMB Director of Corporate Communications, all the facilities necessary for the take-off of the park have been provided to make the place conducive for the manufacturers, including manufacturing hall, security, roads, 24-hour power supply, banking hall, restaurant, and state-of-the-art ICT facilities.

Others include fire service, water treatment plant, mini parks for accommodation, and free land for those who wish to build their own structures.

“All these are things that increase cost of production, so this park is going to crash the cost of production,” Engr. Ginah said of the facility located on 25 hectares of land.

To further make the park attractive, the Federal Government has pledged $50m to attract companies to the parks.

Engr Ginah disclosed that several other such parks are under construction across the Niger Delta as part of NCDMB’s efforts to significantly increase local content in the oil and gas industry and generally drive Nigeria’s industrialisation.

“We have taken Nigeria’s local content level from 5% to 55%. The industry spends about $20 billion a year, so you are talking of about $10 billion saved annually,” Engr Ginah said.

He stressed that NCDMB’s goal is to take the local content in the industry up to 70% by 2027, and “the only way to achieve that is to ensure local manufacturing of components, which is why we are building these parks.”