The Nigerian Content Development and Monitoring Board (NCDMB) has eliminated middlemen and briefcase investors from the country’s oil and gas industry value chain, significantly reducing the contracting cycle to six months. This achievement follows the enforcement of three Presidential Directives on Local Content issued by President Bola Tinubu in March 2024, according to the Board.
Speaking at a breakfast meeting with media executives in Lagos, Felix Ogbe, Executive Secretary of the NCDMB, credited the success to the Board’s full compliance with the Presidential Directive on Local Content Compliance Requirements, 2024 (Executive Order 41). This directive ensures that only local service companies with proven capacities and capabilities can participate in oil and gas tenders. By focusing on local talent and companies, the NCDMB has prioritised the development of indigenous industries while eliminating unnecessary intermediaries.
Ogbe also highlighted the Board’s efforts to streamline its processes, reducing bureaucratic touchpoints to fast-track project approvals. These actions align with the Presidential Directive on Reduction of Petroleum Sector Contracting Costs and Timelines, 2024 (Executive Order 42), which aims to make the sector more attractive for international and local investment. The NCDMB’s adherence to these directives is designed to encourage faster development of oil and gas projects, ultimately contributing to Nigeria’s economic growth.
The Board is also preparing to launch a new initiative, ‘Back to the Creeks,’ which Ogbe said would expand the impact of local content implementation into oil-producing communities and other hinterland regions across the country. This initiative aims to drive further economic benefits to areas that have traditionally been underserved, especially in terms of infrastructure and investment.
Addressing concerns about increased crude oil production costs due to local content mandates, Ogbe rejected such claims. He identified operational downtimes, technical challenges, community disputes, and the cost of providing security as the primary contributors to higher production costs, rather than local content regulations. He also noted that the elimination of briefcase contractors, through NCDMB’s policies, has contributed to cost efficiency in the sector.
In a move aimed at fostering industry growth, the NCDMB has been working closely with international oil companies (IOCs) to create a more conducive environment for new investments. The Board is also developing policies to further support indigenous oil and gas service companies, helping them to remain competitive within the global market.
Responding to a question about the Board’s stance on insurance, Ogbe affirmed plans to revitalise insurance guidelines signed in June 2022 with the National Insurance Commission (NAICOM). These guidelines, when enforced, will require oil and gas operators in Nigeria to utilise local insurance firms, bolstering the country’s financial services sector.
Ogbe underscored the critical role public communication plays in the successful implementation of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act and the Board’s 10-year strategic roadmap. He commended the media for amplifying the Board’s activities and pledged to strengthen cooperation with the press during his tenure as Executive Secretary.
During the meeting, Esueme Dan Kikile, General Manager of Corporate Communications and Zonal Coordination at the NCDMB, explained that the event was organised to formally introduce Ogbe to key media stakeholders. Among those in attendance were senior members of the NCDMB management team, including Dr Ama Ikuru, Director of Corporate Services and Capacity Building, who urged the media to highlight Nigeria’s potential positively to attract further investments into the oil and gas sector.
Abdulmalik Halilu, Director of Monitoring and Evaluation, reported that the Nigerian Content Intervention Fund (NCI Fund) had achieved over 90 per cent performance in terms of access and repayment by qualified companies. He also noted that the Executive Secretary had assembled a team to review the underperforming Community Contractors Fund, which is part of the NCI Fund. Halilu hinted that an announcement would soon be made regarding the remodelling of the fund, alongside new partners and product frameworks.
The Board’s progress in implementing the Presidential Directives was further emphasised by Abayomi Bamidele, Director of Projects Certification and Authorisation. He noted a significant increase in the number of approved projects since the introduction of the local content policies. The Board is also working to support companies that wish to accelerate gas investments, leveraging the Presidential Directive on Tax Incentives, Exemptions, and Remissions for the Oil and Gas Companies.
Director of Legal Services, Naboth Onyesoh, commended the media for its continued support in raising public awareness of the Board’s achievements. He acknowledged that media collaboration has been instrumental in projecting the Board’s work to a broader audience and expressed optimism for deeper cooperation moving forward.