The Nigerian Content Development and Monitoring Board (NCDMB) has reassured stakeholders in the oil and gas industry that the Nigerian Oil and Gas Industry Content Development (NOGICD) Act remains fully relevant and operational, despite concerns raised following the issuance of three Presidential Directives in March 2024.
This clarification was a key highlight of the Local Content Masterclass and Panel Discussion held on Monday at the ongoing African Energy Week in Cape Town, South Africa. The session, which drew a cross-section of experts, policymakers, and industry players, examined Nigeria’s local content journey, corrected misconceptions, and shared lessons with other African oil-producing nations.
The NCDMB delegation at the panel included Engr. Abayomi Bamidele, Director of Capacity Building; Mr. Silas Omomehin Ajimijaye, General Manager, Monitoring and Evaluation; and Ms. Fateemah Mohammed, General Manager of the Nigerian Content Development Fund (NCDF). The discussion was moderated by Dr. Obinna Ezeobi, General Manager, Corporate Communications.
Presidential Directives Do Not Weaken Local Content
Speaking at the event, Engr. Bamidele stressed that the three Executive Orders—covering Local Content Compliance, Reduction of Petroleum Sector Contracting Costs and Timelines, and Tax Incentives for Oil and Gas Companies—had been misunderstood by some stakeholders.
He explained that several operators wrongly assumed that the directives downgraded or sidelined the NOGICD Act. “The truth,” he clarified, “is that the Directives did not set aside local content. Rather, they sought to ensure that existing in-country capacities are prioritized while eliminating unnecessary middlemen in contracting.” He further noted that the Special Adviser to the President on Energy had earlier dispelled similar misconceptions.
Streamlining Processes for Efficiency
Bamidele also outlined measures taken by the NCDMB to align with the new directives. According to him, the Board had simplified its contracting approval system by reducing its touchpoints from nine to five. This reform, he emphasized, would shorten project cycles, reduce costs, and encourage new oil and gas investments.
He revealed that international service companies are now eligible to obtain the Nigerian Content Equipment Certificates (NCEC), which will allow them to directly participate in deepwater projects in line with the NOGICD Act. This, he explained, would attract more capital into the Nigerian oil and gas industry while maintaining local content requirements.
On capacity building, Bamidele disclosed that the Board would soon roll out new training programs in areas where demand for specialized skills is high. He also highlighted ongoing infrastructure projects, including the Brass Island Shipyard (in collaboration with NLNG) and the completion of Nigerian Oil and Gas Parks at Odukpani, Cross River State, and Emeyal-1, Bayelsa State.
Counselling other African nations, he stressed that local content policies must be tailored to each country’s unique realities, educational system, and manpower levels.
Monitoring, Compliance, and Research
In his remarks, Mr. Ajimijaye emphasized the Board’s rigorous compliance mechanisms. He explained that even with the transfer of oil assets to indigenous companies, compliance with the NOGICD Act had not been compromised. “We have retained the same monitoring protocols used with previous operators,” he said, adding that NCDMB is also committed to guiding new asset owners to meet compliance standards.
Ajimijaye further underscored the importance of research and development (R&D) in achieving long-term sustainability. He announced that NCDMB has created six Centres of Excellence across Nigerian universities and deployed its R&D Fund to support the commercialization of promising projects. Already, 15 research ideas and inventions are receiving funding support to reach market maturity.
Financing for Indigenous Players
Also speaking, Ms. Mohammed highlighted the role of the Nigerian Content Intervention (NCI) Fund in empowering Nigerian service companies. The fund, she noted, offers single-digit loans that enable indigenous contractors to acquire capacity and deliver on oil and gas projects.
She outlined seven product windows under the fund, with special emphasis on the ₦50 billion Community Contractors Fund, which allows community-based contractors to access up to ₦100 million at single-digit interest rates. Another unique initiative is the $20 million Women in Oil and Gas Intervention Fund, managed by the Nigeria Export-Import Bank, designed to boost the participation of women entrepreneurs in the sector.
Mohammed also revealed NCDMB’s plans to expand the NCI Fund by partnering with financial institutions to unlock larger-scale projects and deepen skills development. She urged other African nations to design similar financial schemes to strengthen indigenous participation in their oil and gas industries.
Sustaining Local Value Creation
Overall, the panel emphasized that Nigeria’s experience proves that strong local content policies can coexist with reforms targeted at improving efficiency, cutting costs, and attracting investments. The NOGICD Act, they concluded, remains a cornerstone of Nigeria’s oil and gas framework—guiding capacity building, compliance monitoring, financing, and research—while the Presidential Directives only serve to complement its objectives.
