NCDMB seeks cost reduction at oil & gas park

 

The Executive Secretary of the Nigerian Content Development and Monitoring Board, Simbi Wabote has pushed for a virile manufacturing sector that will not only create the much-needed employment opportunities, but also have a multiplier effect on the economy.

This is especially if the right policies and mechanisms are put in place to stimulate both forward and backward integration for the products and materials that will be manufactured.

In a Goodwill Message during the groundbreaking ceremony at the Abia Industrial Innovation Park, Owaza, in Ukwa West Local Government Area of the State on Saturday, Wabote argued that such policies and mechanisms should be geared toward reduced production costs.

According to him, the Park would spur industrial production and position Abia State as a competitive player in the global market, as it will attract national and international investors that will then contribute significantly to the State and nation’s economy.

 

Citing the local content philosophy of the Federal Government and its emphasis on domestication and domiciliation of high value-adding activities, which have necessitated the establishment of the Nigerian Oil and Gas Park Scheme, the NCDMB boss said, “based on the realisation that high production cost is a major challenge for local manufacturers, we adopted a shared-services strategy where we provide infrastructure such as power supply and utilities such as road network, water, waste treatment, and so on for businesses that will be located on the site.”

Such a strategy, he noted, would enable manufacturers to focus on their core business of manufacturing rather than adding the role of power generation, road construction, and others to their operations.

In his own address, The Abia state governor, Alex Oti, said the vision and goals of the state was to put its natural resources to good use.

“We want to responsibly harness the abundant oil and gas reserves within Ukwa for the economic development of the communities within the State and the regions connected to this project location.”

He assured the people of the determination of his administration to actualise that vision, while soliciting their support.