The Nigerian Content Academy Lecture Series, organised by the Nigerian Content Development and Monitoring Board (NCDMB), commenced on a thought-provoking note on Friday with a critical assessment of Nigeria’s local content policy and its impact on the oil and gas industry.
Delivering a lecture titled “Staying the Nigerian Content Course in the Midst of Delivery Challenges,” the pioneer Executive Secretary of the NCDMB, Dr. Ernest Nwapa, dismissed claims that Nigeria’s stringent local content policy was responsible for delays in Final Investment Decisions (FIDs) in the sector.
According to Nwapa, “The absence of FIDs in Nigeria’s oil and gas industry cannot be attributed to local content implementation. There are many government policies that are affecting FIDs.” He explained that the industry operates within an increasingly complex global environment, shaped by changing investment patterns, energy transition, and rising expectations for local participation and value addition.
Dr. Nwapa, who also served as Group General Manager, Nigerian Content Division of the Nigerian National Petroleum Corporation (2005–2010), addressed fears that local content policy was under scrutiny, describing such claims as “baseless arguments often advanced by those opposed to indigenous participation.”
He drew attention to ambiguities in the Presidential Directives issued in February 2024, warning that such uncertainties could undermine the authority of the NCDMB. “We need to re-establish institutional respect for the Board. When NCDMB issues a directive, it must stand. No agency should set it aside,” he asserted.
The former Executive Secretary traced the evolution of local content in Nigeria, noting that previous statutes such as the Petroleum Act (1969), Joint Venture agreements, the Petroleum Technology Development Fund (PTDF), and the Coastal and Inland Shipping (Cabotage) Act (2003) had all aimed at promoting local participation. However, none, he said, achieved as much impact as the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010.
Highlighting the gains of the policy, Nwapa cited the Egina project at the SHI-MCI Fabrication and Integration Yard, Lagos, as a milestone that provided hands-on experience for hundreds of Nigerian engineers and technicians. “Our young people now have practical platforms to acquire skills. The consequences of failing to sustain this progress would be dire,” he cautioned.
He acknowledged the challenge of high project costs but urged continued investment in local capacity to achieve long-term competitiveness. “If we don’t build local content, the cost gap will keep widening. We must bite the bullet and grow our local economy,” he advised.
Dr. Nwapa further recommended that the Nigerian Content Academy should serve as a testing ground for practical policy analysis and solutions, with outcomes channelled to the NCDMB leadership and the Presidency.
During the interactive session moderated by Dr. Ama Ikuru, Director of the Academy, participants including Mr. Simeon Ogari of SEPLAT Energy, Mr. Isoboye Amachree of Oando PLC, and Barr. Naboth Onyesoh of NCDMB sought clarifications on industry issues such as the coexistence of the NOGIC Joint Qualification System (JQS) and the NIPEX JQS.
The Nigerian Content Academy Lecture Series holds weekly to enhance knowledge, stimulate discourse, and promote Nigerian participation in the nation’s oil and gas sector.
