*Launches $50m R&D Fund
By Saidu Abubakar
Minister of State for Petroleum Resources, Chief Timipre Sylva has admonished underfunding of R&D as being reflective on Nigeria’s overdependence on foreign goods and services, saying that it is unsustainable.
Delivering a keynote address at the NCDMB Second R&D Fair and Conference in Yenagoa on Thursday, through his representative, the Permanent Secretary, Ministry of Petroleum Resources, Dr. Nasir Sani Gwarzo, Sylva warned that “this is unsustainable if we are serious about building a national technological capability that will drive economic growth. It is my firm believe that this trend can be mitigated through a collaborative approach to research and innovation.”
The minister posited: “I am aware that during the maiden R&D Fair organized in 2017, novel research breakthroughs were exhibited, and linkages were established between Researchers and end-users in the Oil and Gas Industry. I congratulate the NCDMB for sustaining the tempo of interest since the maiden R&D fair.
While putting certain realities into perspective, Sylva who is also the former Bayelsa State Governor stated that there is a need to do a comparative analysis. “Currently, developed nations such as the USA, China, Japan, Germany, and South Korea spend between 2.5 to 4% of their annual Gross Domestic Production (GDP) on R&D, while developing nations like India, Malaysia, Brazil spend between 0.7% to 1.2%. Nigeria lags well behind by spending only about 0.2% of its GDP on Research & Development.”
Chief Sylva also said that it is important, however, to clear up a certain misconception: “the funding of research is not the sole responsibility of National Governments, rather, big spenders on research and development globally come from the private sector.
“In 2019 private sector practitioners in the ICT hardware & electronic equipment sector, pharmaceutical & biotechnology sector, automobiles and components sector cumulatively spent US$528bn on R&D representing 22% of the US$2.3 trillion global R&D spend. In India, the private sector contributed 38.1% of the country’s R&D spend,” he stressed.
The minister said that the essence of this data analytics is to reinforce the importance of our local service companies to embrace investment in R&D as a key component of their business model; “and it is my expectation that this R&D Fair will provide the needed stimulus.”
He also recalled that the Nigerian Oil & Gas Industry Content Development Act 2010 confers on the Minister of Petroleum Resources the responsibility of making regulations for the growth of research and development in the Oil & Gas Industry, adding that the provision underscores the relevance of Research as a key enabler for sustainable local content development, which is the essence of setting up the Nigerian Content Development and Monitoring Board.
“Still on funding and in line with our commitment to provide leadership, I am pleased to officially announce the creation of the Nigerian Content Research and Development Fund with an initial seed capital of $50 million. The fund is designed for application in the following areas as earlier elaborated by the ES NCDMB: (a) The establishment of Research Centers of Excellence; (b) Funding support for Research Commercialization; (c) Funding support for Basic and Applied Research and (d) Endowment of professorial chair.
The fund, though clearly insufficient, signifies the premium the present administration places on growing the Nation’s research and development capabilities. “I encourage the private sector to replicate the global practice by complementing the Nigerian Content Research & Development Fund and actively support the Government’s drive in upscaling our national research architecture.
“Following a painstaking forensic analysis of the research eco-system in Nigeria and the anticipation of the industry, NCDMB has developed a 10-year R&D Roadmap to set the agenda for its interventions on R&D.
“At this juncture I am delighted to formally launch the NCDMB 10-year R&D Roadmap. The Roadmap is anchored on 8 success pillars – funding, infrastructure, capability, commercial framework, collaboration, governance, legal framework and enforcement. The 8 success pillars collectively implemented will no doubt position our industry on the path of sustainable assimilation of products of Research in oil and gas operations,” Sylva categorically stated.
He also said that beyond financial intervention, the industry must challenge the local academia with its research problems, to ensure the development of homegrown technology and the retention of oil and gas spend in the economy.
“I trust that this challenge will be taken seriously by the NNPC and its Joint Venture Partners especially now that we are preparing to unveil a reformed oil and gas industry that is driven by efficiency, innovation and independence as encapsulated in the Petroleum Industry Act of 2021 signed into law by Mr. President on 16th of August 2021.
Valuechain reports that the Petroleum Industry Act has introduced a governance framework for the industry with clear delineation of roles between regulation and profit-centric business units. The Act contains fiscal incentives to attract investment in gas development and local refining; it also provides exceptional care for host communities and future energy security through dedicated funding of frontier basins, renewable energy development and local content.
The evolving reality is a pointer for stakeholders to begin to look inward and gravitate towards research and development endeavors capable of granting them technological and strategic competitive advantage, Sylva stated.
The one-day event took place at the 1000-seat magnificient Content Tower Conference Hall, Oxborn Lake, Yenagoa, drawing participants from across the country as well as exhibitors from the universities and private sector.