…As Media is Urged to support local content policy advocacy
FAVOUR ISHEMBER, Abuja
The Nigerian Content Development and Monitoring Board (NCDMB) has announced that local content participation in the country’s oil and gas industry has increased to 61%, as the board intensifies its efforts to reach its target of 70% by 2027.
The progress is attributed to sustained reforms, stricter enforcement of local content regulations, and enhanced capacity development across the industry.
Speaking at a media capacity-building workshop in Abuja, Abdulmalik Halilu, Director of Corporate Services, explained that Nigeria’s local content drive aims to transform the oil and gas sector from a revenue-focused industry to one that creates value, generates jobs, and stimulates industrial growth.
He noted that studies conducted in the early 2000s revealed that the country was exporting jobs and services by prioritizing rapid oil production over domestic capacity building, leading to the enactment of the Nigerian Oil and Gas Industry Content Development Act in 2010.
According to Halilu, the local content policy mandates that goods and services that can be produced locally must be delivered domestically, without compromising global standards, competitiveness, or project timelines.
He stated that NCDMB currently enforces over 300 local content targets while supporting capacity development, emphasizing that enforcement and development are crucial to the policy’s success.
The board has recorded significant achievements, including the engagement of over 1,400 vendors on the NLNG Train 7 project, the localization of pressure vessel fabrication, and the supply of internationally certified safety boots, pumps, and cables by Nigerian manufacturers.
The Director added that several manufacturing capacities developed for the oil and gas sector now serve other industries, including power, construction, and heavy engineering.
On financing, Halilu disclosed that the Nigerian Content Development Fund, sourced from 1% deductions on upstream contracts, has been deployed through intervention programs offering single-digit interest loans of up to $10 million to indigenous companies via the Bank of Industry. He said the funding interventions have recorded a non-performing loan ratio of below 5% and helped preserve thousands of jobs during the COVID-19 industry shutdown.
He also highlighted the Board’s data-driven regulatory approach, supported by digital platforms such as the Joint Qualification System and strict monitoring and evaluation frameworks, noting that no NCDMB project has been abandoned since 2010.
Beyond Nigeria, the Director said the NCDMB is collaborating with African partners to promote local content development through platforms such as the African Petroleum Producers’ Organisation, the Africa Energy Bank, and the Brazzaville Accord. He urged the media to continue supporting public awareness and advocacy for local content policy, describing it as critical to Nigeria’s long-term economic development.
He said: “Local content is not a sprint; it is a marathon. As of today, we are at about 61 per cent, and our target remains 70 per cent by 2027. We are closing the gaps deliberately, particularly in manufacturing, which is our biggest challenge.”
Earlier, Dr. Obinna Ezeobi, General Manager of Corporate Communications at NCDMB, reaffirmed the organization’s commitment to ongoing engagement with the media and continuous capacity building for journalists covering the oil and gas sector.
He described the event as a longstanding tradition, dating back to 2018, aimed at fostering deeper relationships with the media and enhancing professional competence.
According to Ezeobi, effective communication has been instrumental in showcasing Nigerian content achievements over the years, and the media has played a vital role in shaping public understanding of the impact of the Nigerian NOGICD Act.
He emphasized that the Board prioritizes improving journalists’ capacity, recognizing the media’s agenda-setting role and its significant influence as a key stakeholder in the oil and gas industry.
Ezeobi assured media practitioners of the Board’s commitment to continuous engagement across regions where its activities have a significant impact, stressing that informed reporting is critical to deepening Nigerian content development and national economic growth.
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