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By Adewale Sanyaolu
The Nigerian Content Development and Monitoring Board (NCDMB) has lamented that importation of lubricants into Nigeria has led to huge revenue and job losses for the country.
Executive Secretary of NCDMB, Mr. Simbi Wabote, stated this at the groundbreaking ceremony of a 64,000 litres per day lubricants blending plant being developed at Gbarain, Bayelsa State by ERASKON Nigeria Limited in partnership with NCDMB.
He remarked that Nigeria’s in-country manufacturing capacity for lubricating oil falls far below consumption, hence the shortfall is met through importation.
He explained that the ERASKON facility will produce approximately 64,000 litres of lubricants per day and more than 20 million liters of products a year, becoming one of the largest lube plants in the country, with the capacity to serve the Niger Delta region and beyond.
Wabote, explained that the partnership with ERASKON was in line with the Board’s mandate of developing local manufacturing capacity, providing employment opportunities, and increasing local content in the Nigerian oil and gas industry and linkage sectors.
He hinted that Section 70(h) of the NOGICD Act of 2010 mandates the Board to assist local contractors and Nigerian companies to develop their capabilities and capacities to further the development of Nigerian Content in the oil and gas industry.
According to the Executive Secretary, no lubricant blending plant exists currently in Bayelsa State and ERASKON decided to domicile and domesticate the production and thereafter submitted proposals to the Board, which was approved after a diligent review of the technical and commercial viability.
He confirmed that the blending plant would be beneficial to the host community, State, and the neighbouring states through meeting their needs for lubricant products as well as providing direct, indirect, and induced job opportunities.
The Executive Vice Chairman of ERASKORP Nigeria Limited – the holding company of ERASKON lubricants, Mr. Maxwell Oko, confirmed that the plant would on completion produce high-quality engine oils, transmission fluids, hydraulic fluids specialised four-wheel-drive products, engine coolants, and specialty products such as waxes.
In the second phase of development, the company would go into the manufacturing of industrial chemicals such as drilling and production chemicals as well as transformer and turbine oil, in addition to household products such as detergents and aerosols, he added.
On why the project was sited in Bayelsa State, Oko said the lubricants facility is making a huge impact in the lives of the communities, by promoting development, creating employment and empowering Nigerians. It would also develop local manufacturing capacity and increase local content participation in the industry.
