President Umaru Yar’ Adua on Monday charged managers of the nation’s oil and gas industry to contribute at least 30 per cent to the Federal Government’s target of 6.1 per cent Gross Domestic Product growth.

President Yar' Adua

Speaking at the Nigerian Content Summit on Oil and Gas in Abuja, Yar Adua frowned at the current contribution of the sector to the nation’s GDP, which he described as low. He noted that the sector, which accounted for about 95 per cent of the nation’s export income and three-quarters of Federal Government’s revenue, contributed just 35 per cent to the GDP.

He said Nigeria should strive to rival countries like Malaysia, Norway and Brazil where significant portions of the money the sector spent were domiciled within these countries. Represented by the Minister of State for Petroleum, Mr. Odien Ajumogobia (SAN), Yar’ Adua said, “The gains of the oil and gas industry have not impacted on the catchment extractive and productive areas of the Niger Delta in any significant way.“ Nigeria must achieve a sustained annual gross domestic product rate of 6.1 per cent with the oil and gas sector contribution to this standing at no less than 30 per cent.
By the same token, the industrial manufacturing sector would have to achieve a growth rate of not less than 15 per cent per annum with capacity utilisation standing at over 90 per cent.”

He explained that government would, in its pursuit of the Nigerian Content, implement policies to attract local investment growth, which would take into cognisance detailed guidelines that provided the road map for the accelerated development of local content and value addition in Nigeria. He added that government would also implement robust regulations that set realistic target limits and penalties that would be in conformity with the provisions of the Bill on Local Content before the National Assembly. He exhorted stakeholders in the sector to get involved in the active promotion of the growth of manufacturing, assembly and fabricating plants and equipment used within the oil industry and in the provision of ancillary and supporting services.

He also charged them to support the strengthening of institutions and systems that enable local content development through training and capacity building and invest significantly in human resource development. He regretted that there had been some investments in plant and technology in Nigeria to support the industries, which were not being supported by the operators, warning that government would not accept that.

n his presentation, the General Manager, National Petroleum Investment Management Services, Dr. M.K. Baru, blamed the low contribution of the oil and gas sector to the nation’s GDP to the low Nigerian Content existing in the industry.

Source: Punch