Mkpoikana Udoma
Port Harcourt — The Nigerian Content Development and Monitoring Board, NCDMB, has clarified that the three Executive Orders issued by President Bola Ahmed Tinubu in March 2024 did not erode the relevance of the Nigerian Oil and Gas Industry Content Development, NOGICD Act, but instead reinforced compliance and catalysed investments in the sector.
This position was restated at the Local Content Masterclass during the African Energy Week in Cape Town, South Africa.
The panel, which featured senior NCDMB officials, reviewed Nigeria’s milestones in local content, corrected misconceptions around the Executive Orders, and provided lessons for other African oil-producing countries.
Director of Capacity Building at NCDMB, Engr. Abayomi Bamidele, said the directives were widely misunderstood by some stakeholders as an attempt to sideline the NOGICD Act.
“The Special Adviser to the President on Energy had to clarify that the Presidential Directives did not set aside local content. They only mandated that existing capacities must be patronised and middlemen must be excluded from the contracting process,” he explained.
The three Executive Orders include: the Presidential Directive on Local Content Compliance, the Directive on Reduction of Petroleum Sector Contracting Cost and Timelines, and the Directive on Oil and Gas Companies (Tax Incentives, Exemption, Remission, etc.).
According to Bamidele, the Board has already streamlined its contracting processes in line with these reforms.
“We collapsed our touchpoints in the contract approval process from nine to five, contributing to the shortening of industry contracting cycles, reducing project costs, and catalysing new oil and gas projects,” Bamidele stated.
He added that qualified international service companies can now be awarded Nigerian Content Equipment Certificates, NCEC, to participate directly in deepwater operations, a move that aligns with both the Act and the Executive Orders.
On capacity building, Bamidele revealed that NCDMB will roll out new training programmes in high-demand technical areas while accelerating critical infrastructure projects such as the Brass Island Shipyard, supported by NLNG, and the Nigerian Oil and Gas Parks at Odukpani in Cross River and Emeyal-1 in Bayelsa.
“Capacity development must be aligned with industry dynamics. Our goal is to ensure Nigerians remain at the centre of oil and gas projects,” he said.
Bamidele further urged other African countries to adopt context-specific local content strategies.
“Local content policies must reflect the skillsets, mindset, and technological realities of each nation. Copying models without tailoring them to national circumstances will not deliver results,” he advised.
Also, General Manager, Monitoring and Evaluation, Mr. Silas Omomehin Ajimijaye, stressed that robust compliance systems remain in place.
“The transfer of assets to indigenous operators has not reduced compliance. We have sustained protocols with new owners and will continue to support them to meet their obligations under the Act,” he said.
He also underscored the importance of research and development, noting that NCDMB has established six centres of excellence across Nigerian universities and is funding 15 ongoing innovations through its R&D Fund.
Similarly, General Manager of the Nigerian Content Development Fund, NCDF, Ms. Fateemah Mohammed, highlighted how the Nigerian Content Intervention Fund, NCI Fund, is boosting indigenous participation.
“The NCI Fund provides single-digit financing to service companies, enabling them to grow capacity. One of our flagship products, the Community Contractors Fund, is a N50 billion scheme that allows contractors in local communities to access up to N100 million,” she explained.
She also pointed to the $20 million Women in Oil and Gas Fund managed by NEXIM Bank, which is targeted at empowering female entrepreneurs.
“Our aspiration is to scale the Fund and collaborate with more financial institutions to unlock larger projects and deepen skills development,” Mohammed added.
