The House of Representatives has initiated an investigation into the stalled Odukpani Oil and Gas Park project in Cross River State, raising concerns about its future and its potential to revolutionize Nigeria’s oil and gas sector.
The House of Representatives has mandated its committee on Nigerian content development and monitoring to investigate the non-completion of the oil and gas park project in Odukpani Local Government Area of Cross River State.
This investigation is to ensure that all factors militating against the completion and smooth-running of the park are effectively addressed.
This resolution is coming on the heels of a motion moved by Rep. Bassey Akiba (LP, Cross River) on the “Need to Investigate the Oil and Gas Park Construction Project in Odukpani Local Government Area of Cross River State”
Addressing the abandoned state of the oil and gas park in Odukpani, Bassey states that previous efforts to develop the area have been stalled making it unutilized, whereas a similar project which was undertaken at the time of inception has been completed.
He raised concerns that specific reasons for the stagnation are not detailed whereas reports have alleged that the challenges are related to funding, bureaucratic bottlenecks, operational inefficiencies, and shifting focus, among other things.
He emphasised that efforts must be made to ensure completion of the project as the Odukpani park holds significant potential for local economic development, especially in terms of employment and infrastructure.
NCDMB’s Role in the Project
The Nigerian Oil and Gas Industry Content Development Act (2010) mandates the Nigerian Content Development and Monitoring Board (NCDMB) to increase Nigerian participation in the sector by ensuring that local resources such as goods, services, and expertise are prioritized, investment are attracted to the oil and gas sector, and oil producing communities are properly integrated into the oil and gas value chain.
Sections 4 and 5 of the NCDMB Act mandates the board to coordinate and monitor the implementation of the Act and ensure a measurable and continuous growth of Nigerian content in all oil and gas arrangements, projects, operations, activities or transactions in the Nigerian oil and gas industry.
As part of this mandate, NCDMB established the Nigerian Oil and Gas Parks Scheme (NOGAPS), a scheme designed to develop oil and gas parks across Nigeria to support local manufacturing and research. These parks offer shared infrastructure such as power, roads, water supply, and waste management, reducing operational costs for businesses.
In March 2018, NCDMB commenced implementation of NOGAPS with the construction of the first Nigerian Oil and Gas Park at Odukpani, Cross River State, to create a regional low-cost manufacturing hub that would produce equipment components and spare parts that would be utilized in the Nigerian oil and gas industry.
Yet, seven years later, the park has not been completed or put to use.
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The Odukpani Oil and Gas Park
The Odukpani Oil and Gas Park, located in Onimankiong, Odukpani Local Government Area of Cross River State, is a flagship project initiated by the NCDMB as part of NOGAPS to enhance local content in the oil and gas industry.
The park aims to increase in-country value retention by manufacturing equipment components and spare parts used in the oil and gas sector, reducing reliance on imports and saving over $20 billion annually.
By fostering local manufacturing, the park aims to enhance Nigeria’s self-sufficiency in the sector, reduce dependence on imports, and stimulate economic development in the host community and the broader region.
It is the first among several planned oil and gas parks across Nigeria and was developed in collaboration with international oil companies (IOCs) like Shell, ExxonMobil, and Nigerian Agip Oil Company.
Launched in 2018, the park spans 25 hectares containing various facilities such as manufacturing shop floors, warehouses, training centers, staff quarters, ICT facilities, 24-hour power supply, banking halls, clinic, and other facilities.
The project is expected to create about 2,000 jobs and provide on-the-job training opportunities for the local community. It is also a significant component of the NCDMB 10-year strategy roadmap aimed at raising in-country value retention in the oil and gas industry from the current levels to 70 percent.
Unfortunately, despite its promising inception, recent reports indicate that the Odukpani Oil and Gas Park remains incomplete and has not commenced operations for the past 7 years.
What are the implications of this delay?
This incomplete status of the Odukpani Oil and Gas Park carries several significant implications including:
- Adverse economic Impact: The park was envisioned to boost economic growth by creating jobs, attracting investments, and fostering local industries. Its abandonment stalls these potential benefits, adversely affecting the local economy and denying residents much needed employment opportunities.
- Weak Local Content Development: The park is a critical component of NCDMB’s strategy to increase local content in Nigeria’s oil and gas industry. Delays in its completion hinder efforts to boost domestic manufacturing capabilities, perpetuating reliance on imported equipment and services.
- Loss of Investor Confidence: The prolonged delay sends a negative signal to potential investors, raising concerns over project execution and government commitment to infrastructure development. This could have broader repercussions for future investments in similar initiatives across the country.
- Wasted Public Resources: Millions of dollars in public funds have already been invested, yet there is no return on this investment. An incomplete project risks becoming a white elephant, further straining national resources.
Way forward
Addressing the challenges facing the completion of the Odukpani Oil and Gas Park is essential to realize its envisioned benefits and to reinforce confidence in Nigeria’s commitment to developing its oil and gas infrastructure.
The investigation is a crucial step toward breaking the cycle of abandoned projects, ensuring accountability, and unlocking the park’s economic opportunities for Cross River State and beyond.
As stakeholders await the findings of the investigation, one question remains: Will Odukpani finally get the oil and gas hub it was promised, or will it remain another symbol of unfulfilled development goals?
STAR Check: Nigerians, particularly, constituents of Calabar Municipal and Odukpani federal constituency, can keep tabs on the legislative performance of Rep. Bassey Akiba throughout the 10th House here
