Procedures for implementing Presidential Directive on local content unveiled by NCDMB
The directives are aimed at deepening local content in the oil and gas industry, thereby increasing the role Nigerian service companies play in this critical sector.
The Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Felix Omatsola Ogbe, on Monday in Abuja hailed the Presidential Directive on Local Content Compliance Requirements as crucial for enhanced competitiveness and mitigation of risks regarding unqualified contractors, just as he unveiled five focal areas for implementation of the policy initiative.
The Executive Secretary spoke at the Nigerian Content Seminar, the opening day of the Nigerian Oil and Gas (NOG) Energy Conference, in Abuja.
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The NCDMB boss listed the areas as ‘Promoting the Utilisation/Growth of In-country Capacities,’ ‘Enhancing the Cost Competitiveness of Oil and Gas Projects,’ ‘Non-inclusion of Intermediary Entities Lacking the Essential Capacity to Perform from the Nigerian Content Plan (NCP),’ ‘Approval of Nigerian Content Plan (which consists of contractors that meet the legal definition of Nigerian companies and demonstrate capacity to execute projects within Nigeria),’ and ensuring that ‘Entities acting solely as intermediaries, with no demonstrable capacity to execute the project or activity, shall not be approved.’
Engr. Ogbe assured that under the first focal area, ‘Promoting the Utilisation/Growth of in-country Capacities,’ the Board would continue to leverage its existing processes “to assess and verify the capacity of companies, facilitating and carrying out in-country capacity audits in collaboration with all relevant stakeholders.”
On enhancement of cost competitiveness of oil and gas projects, he said, among other activities operators in the oil and gas industry would only be permitted to source capacities out-of-country “only after in-country capacity gaps have been identified.”
Concerning the third focal area, namely, ‘Non-inclusion of Intermediaries Lacking the Essential Capacity,’ Engr. Ogbe stated that the “Tender opportunity’s pre-qualification and technical evaluation phases” would be used to eliminate entities so identified as incapable of performing.
Explaining the Board’s procedure in respect of ‘Approval of Nigerian Content Plan (NCP),’ he noted that international players’ participation would be deemed appropriate only “when the necessary Nigerian Content level is unavailable locally or inefficient”.
While assuring that entities acting solely as intermediaries with no demonstrable capacity to execute a project would not be approved, he reiterated that the Board remains “steadfast in its dedication to guaranteeing that any services provided will generate value in the country,” and that it would “evaluate current policies and guidelines to encourage the development of indigenous capabilities and guarantee that these policies and guidelines are not misused, misapplied, or misinterpreted.”
Engr. Ogbe observed with satisfaction that the Presidential Directive and the Board’s modalities are in sync with the objectives of its 10-Year Strategic Roadmap, which aims to increase Nigerian Content to 70 per cent by 2027.
Among recent landmark accomplishments of the Board, as identified by the NCDMB boss, were the inauguration of Amal Technologies Gas Leak Detection Device and Printed Circuit Board Manufacturing facility in December 2023 in Abuja, the commissioning of the Kwale Gas Gathering (KGG) Hub and NEDOGAS Plant in June in Delta State, and the Final Investment Decision (FID) on the Ubeta Field Development Project by TotalEnergies Exploration and Production Nigeria Limited and its Joint Venture partner, Nigerian National Petroleum Company Limited.
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Speaking during one of the breakout sessions, the Director of Projects Certification and Authorisation Certificate (PCAD) at the NCDMB, Engr. Abayomi Bamidele explained that NCDMB had enabled oil and gas through its policies, collaboration and investments.
According to Director Bamidele, about 1,000 Nigerian service companies were registered on the NOGIC JQS in 2011; the number has however increased to 13,000, while the number of operating companies has equally increased to 120 firms.
In his contribution, General Manager, Planning Research and Statistics, Mr. Silas Omomehin Ajimijaye affirmed that subsequent legislations enacted in the oil and gas industry after the Nigerian Oil and Gas Industry Content Development (NOGICD) Act had reinforced the NOGICD Act.
