NCDMB, Dangote Group begin collaboration on refinery project

The Nigerian Content Development and Monitoring Board (NCDMB) and Dangote Industries Limited have begun to collaborate towards ensuring maximum utilization of local capacities in the construction of the company’s 650,000 barrels petroleum refinery plant.

The company also pledged among other things, to utilize certified Nigerian service companies for the fabrication of modules, pipe coating as well as the supply of paints and cables.

In addition, the two organisations will hold a technical meeting and undertake a tour of the project site to examine extensively other Nigerian Content opportunities that can be utilised on the project. The collaboration was agreed on Thursday in Lagos after the Executive Secretary, NCDMB, Engr. Simbi Wabote led a team from the Board to meet with the management of Dangote Group, led by the President, Alhalji Aliko Dangote.

Responding to the presentation made by the Executive Secretary outlining existing Nigerian Content capacities and capabilities and how they can contribute to the refinery project, Engr. Joseph Makoju, the Honorary Adviser to the President, Dangote Group, confirmed that “there are a number of opportunities for collaboration. We want to partner with you and we hope to have mutual beneficial relationships.”

Makoju noted that the company planned to set a record on Local Content accomplishment with the petrochemicals plant, which would be biggest single train refinery in the world.

He identified the Dangote Academy as another platform for collaboration, especially as the company was gearing up to extend the institute’s focus from the cement industry to include the petroleum industry and other key sectors that it operates.

Earlier in his presentation, Wabote commended the President of Dangote Group for his investments in manufacturing across sectors of the economy, which has created employments for thousands of Nigerians.He expressed confidence that the company’s foray into the downstream sector of the petroleum industry would revolutionize the sector and reverse the continued dependence of the nation on imported petroleum products.

The Executive Secretary informed the Dangote team that the implementation of Nigerian Content Act in the upstream sector of the oil and gas industry had developed huge capacities that should be leveraged for the refinery project.

He advised the company to pay assessment visits to oil and gas service companies in Nigeria to verify their capacities and subsequently contract them in line with the provisions of the Nigerian Content Act, which mandates patronage of facilities established in-country.

Wabote clarified that companies operating in the downstream sector of the petroleum industry were excluded from remitting one percent of their contract sums to the Nigerian Content Development Fund (NCDF). However, the law mandates the downstream companies to abide with other provisions of the act which includes the provision of fair opportunities to Nigerian companies to compete for jobs in the downstream sector.

On the extensive plan to select and train local personnel who would run the refinery proficiently, he encouraged the company to pick the trainees from the Nigerian Oil and Gas Industry Joint Qualification System (NOGICJQS), which has database of Nigerians with various competencies in the oil and gas sector. He also asked the Dangote Group to engage the Oil and Gas Trainers Association (OGTAN) because members of the group had developed capacity and can provide some of the trainings being envisaged by the company for new hires.

6 thoughts on “NCDMB, Dangote Group begin collaboration on refinery project

  • Just visited the NCDMB site and saw tonnes of exciting news and updates. The biggest thrill for me is seeing the NCCF section and link. it appears NCDMB has cranked up gear in vision , strategy and activities, and its about all we can do to hang on. The commitment by the board at the NOGOF in Uyo to list upcoming projects is a welcome step. I hope the board can pull it off. It is now easier to relate and interphase with the ‘born again’ NCDMB. Bravo!!

  • The NCDMB is one of the key organizations in Nigeria with the resources and the human capacity to unleash the innate and latent creative potentials of Nigerians.Our educational institutions have not been able to focus the intellect and creativity of our youth on the pressing and urgent technical and scientific needs of our society. Thus the innate energies, faculties and capabilities are channelled into less beneficial outlets.
    There is a need to capture the imagination and develop the potential skills of our youth by creating and sustaining facilities like – a. Museums of science and technology,or Science Parks, ideally in every state of the country. This will showcase prototypes of various equipment, machinery, aeroplanes and vehicles, e.g scaled up model of a 4-stroke internal combustion engine, scaled down model of a locomotive steam engine, ditto for a diesel engine, generators etc. The more rudimentary the better. This will de-mystify these equipment and inspire people innately talented in those areas to learn and experiment.Most people do not have access to these things when at formative stages of life and careers. Thousands of our potential engineers, innovators and fabricators have ended up as bankers and salesmen, without living up to their potential.
    2. There should be functioning foundries in all parts of the country.
    Without domesticating metallurgy and metal smelting and fabrication technology, we are getting nowhere fast in Nigerian content development. We have no business importing 98% of the bolts and nuts used in O&G as well as other sectors. We need to support and collaborate with the local smiths and bronze casters still surviving, but every higher institution offering engineering courses should have functioning foundries.
    3. The Board’s collaboration with OEMs like ABB, Schneider etc to stimulate local fabrication of panels, switchgear etc is commendable.. The board however should provide grants to individuals who wish to venture into manufacture of items like solar panels, alucobond wall cladding materials, batteries etc.
    The private sector will only buy stakes in such ventures when there is ‘proof of concept’. Until then, investors would rather invest in importing rice, and sugar etc
    4. The Board can also sponsor competitions in ICT and technology and construction among others, in schools and generally., e,g, production of a tri-cycle, power generator, fan, bicycle, water pump etc.
    The Board may need to collaborate with relevant line Ministries and parastatals like RMRDC, Min of Science and Tech, etc
    5. Fibre glass is a material with huge application in all facets of industry. The Board can organize subsidized training in production of fibreglass based items.
    Thanks for your attention

    • Great observation sir! Your contributions are invaluable. As capacity building is one of the main thrust of the Board be rest assured that your recommendations here would be treated with the utmost importance it deserves. Thank you sir!

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