OGRepublic August Edition

AFRICAN ENERGY STORIES
Africa Need to Diversify its Economy, Invest in R&D - Wabote
By Ndubuisi Micheal Obineme
The Executive Secretary of Nigerian
Content Development and Monitoring
Board (NCDMB), Engr. Simbi Wabote,
has said that the global paradigm shift from
fossil fuels to renewables is a wakeup call for
African countries to diversify its economies and
investment in research and development.
This statement comes in-line following the
successful edition of the 5th Sub-Saharan Africa
Internatioal Petroleum Exhibition and
Conference (SAIPEC), hosted by the Petroleum
Technology Association of Nigeria (PETAN).
In his speech, Wabote urged the African oil and
gas producing countries to reposition their
economies from a single income source towards
multiple sources of revenue generation, which
will require some delibrate actions from the
public and private sector.
According to him, "In the early days, firewood
was the source of energy and every body
decided to burn firewood in order to use it as an
energy source. And when African countries
realise that it was the source of energy, we
decided to start burning our woods.
Engr. Simbi Wabote, Executive Secretary of Nigerian Content Development and Monitoring Board (NCDMB)
"By the time we got into it, they discovered coal.
They came back to Africa and said, burning of
woods is dangerous that the best form of energy
is coal.
"Of course, we have to abandon firewood as we
also discovered coal in Nigeria. We were
planning to invest towards the utilization of
coal.
"But, all of a sudden, the developed world said it
is no longer coal but hydrocarbon is the best
form of energy.
"Now, African countries such as Nigeria
abandoned all the coal opportunities that we
have and we moved into fossil fuels.
"But, in China today, one of their major source
of power is still coal. China has been able to
utilise coal to generate electricity.
"China was able to invest in Research and
Development (R&D) to produce technological
innovations and resources to ensure they use
coal as part of their energy mix.
"In a country like Nigeria, we aren't using coal
despite the abundance of coal in the country.
Now, we are beginning to grabble with the
opportunities in fossil fuels. This aggression is
that fossil fuel is no longer acceptable, but it is
now renewables.”
He added, "African countries that has just
discovered oil and gas should move beyond
exploration but invest in Research &
Development and technology such that they
can be able to utilise this natural resources.
“If African countries do not diversify their
economy and invest in R&D, we will not have
the funds and technology to develop fossil
fuels.
"They will abandon this resources and depend
on the developed economies to survive. This is
the Train that is coming to Africa.
"The Train has started moving. If care isn't
taking most African countries that are just
discovering this resources will not even tap into
it before the world leave them behind."
Speaking on the Nigerian oil and gas industry,
Wabote said that the Federal Government has
decided that it will utilise its hydrocarbon
resources to diversify the economy. This should
be a push for African countries that are just
discovering oil and gas.
He further explained that the NCDMB has
developed a Nigerian Content Plan to move
beyond oil and gas activities such as drilling,
construction and processing facilities.
He noted that the Nigerian Content Plan
ensures that the various part of the oil and gas
project are linked to the procurement of locally
manufactured goods and services.
“The Nigerian Content Plan outlines the
requirement in equipment, consumables,
fabrication, personnel, marine vessels, research
and development, banking, insurance, and legal
services in order to link the entire value chain
into the oil and gas activities. It has worked very
well for us.
"The opportunities in the oil and gas industry
can be linked to several sector of the economy
and indirectly to other areas such as
Agriculture, Aviation, Medical Services,
Telecommunication among others.
"The Nigerian Content Plan captures this
activities and other industry opportunities
rather than focusing on the drilling. There are
other ancilliary activities that support such
activities as well.
"There are Seventy services, and Two Hundred
& Seventy Eight opportunities contained in the
Nigerian Content Act which are also used to
drive patronage of goods and services as well as
guide investors on areas of opportunities.
"I think this is what African countries need to
focus on so they will be specific in the services
they can provide as well as link those services to
other opportunities.
"In Nigeria, we have a very robust tool you can
use if you want to start a local content journey in
the Nigerian oil and gas industry.
"If you use the Nigerian Content Plan efficiently,
you will attain the desired success.
"Local content is moving beyond the oil and gas
industry to become a national agenda. It is no
longer use to be a CSR project to appease some
agrieved community," he concluded.
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