THE implementation of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act has saved Nigeria $2 billion in the Engineering, Procurement and Construction (EPC) contract for Nigeria Liquified Natural Gas (NLNG) Train 7 Project, the Nigerian Content Development and Monitoring Board (NCDMB), has said.
Its Executive Secretary, Simbi Wabote, stated this at the Annual Capacity Building Workshop organised by the Board for the Judiciary.
The event was held via zoom and it drew over 117 participants, including justices of the Supreme Court, Appeal Court, National Industrial Court, Federal High Court and external solicitors.
Wabote, according to a statement by the Board, delivered the keynote address and stated that contrary to wrong insinuations held in some quarters, evidence has proven that sustainable Local Content practice reduces the cost of oil and gas projects in addition to creating job opportunities and economic prosperity.
He cited the LNG Train 7 EPC bid, where Saipem Contracting Nigeria and its consortium won the contract with a much lower bid than its competitor, leveraging its commitment to Local Content and investments in the country in the last 50 years.
He said: “In the LNG Train 7 project contract which was recently concluded and awarded, the difference in price between Saipem that had established itself in Nigeria and the second lowest bidder that was coming from outside the country was $2billion. That’s a huge sum of money that this country would have lost if not for the drive for the development of Local Content.’’