Calls for Transparency and Accessibility in Utilizing Local Content Development Funds
Senator Natasha Akpoti-Uduaghan, who represents Kogi Central and is the Chair of the Senate Committee on Local Content, has boldly called on the Nigerian Content Development and Monitoring Board (NCDMB) to make sure that $400 million in intervention funds are made available to the general public in an effort to empower regular Nigerians.
During an interactive session with the NCDMB administration, the Senator revealed the availability of these funds and emphasised the significance of accessibility and openness when using the Local Content Development Funds. Out of the identified funds, $50 million is allocated for capacity building in the oil and gas sector, with a specific focus on both the industry ($30 million) and women in oil and gas businesses ($20 million).
Another $50 million designated for Research and Development in the oil and gas sector is currently held by the Central Bank of Nigeria. Senator Akpoti-Uduaghan is certain that these monies be used to entice producers of gas and oil equipment to the nation, promoting economic expansion and offering reasonably priced credit to companies engaged in manufacturing.
The Senator asked the NCDMB to make clear the procedure for obtaining these monies, expressing worry that a large number of Nigerians are not aware of their existence. She emphasised throughout the meeting the achievements of Chevron, which not only finds crude oil in Saudi Arabia but also uses the gas byproduct Polypropylene to make syringes, a major boost to the country’s economy.
Senator Natasha bemoaned the failure of the Bayelsa Jubilee Syringe Plant, blaming the International Oil Companies’ models for operational flaws. The Senate Committee required the NCDMB to as part of its oversight duties provide the nominal roll of the Board, the audited accounts for 2021–2022, and the budgetary results for 2022–2023.
The Executive Secretary of NCDMB, Engr Felix Ogbo, revealed that $300 million meant for the Nigeria Content Intervention Fund is still with the Bank of Industry. According to Ogbo, the entire $300 million has been disbursed, with $330 million distributed to date. Five companies out of the seventy that accessed the fund have fully repaid the loan.
Senator Natasha emphasized the need for synergy between the oil and gas sector and other industries. She urged the NCDMB to engage international oil companies operating in Nigeria to establish manufacturing companies using gas byproducts like polypropylene for the production of syringes, protective wear, and other essential products. The Senator underscored the importance of making Nigeria not just an extractive hub but also a manufacturing powerhouse.
The NCDMB management assured the committee that rigorous monitoring mechanisms were in place to ensure the funds are used for their intended purposes. Engr Felix Ogbo explained that during the global economic shutdown due to COVID-19, a two-year moratorium was granted to companies to recover from the pandemic’s impact, demonstrating flexibility in managing the intervention funds.
Senator Natasha Akpoti is dedicated to empowering common Nigerians and promoting sustainable economic growth, as seen by her support for inclusivity and openness in the use of the Local Content Development Funds. Her appeal for sectoral synergy makes sense while the country faces economic difficulties and is a calculated step towards building a stronger, more diverse economy.
