Dr Nwapa refutes claims that local content policies deter oil investment
Pioneer NCDMB Executive Secretary urges industry to focus on efficiency and collaboration, not blame
The conversation on local content and its role in Nigeria’s oil and gas sector gained renewed energy on Friday as Dr Ernest Nwapa, the pioneer Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), dismissed claims that stringent local content rules were discouraging major oil investments.
Speaking at the inaugural edition of the Nigerian Content Academy Lecture Series, held under the theme “Staying the Nigerian Content Course in the Midst of Delivery Challenges,” Nwapa provided a deep reflection on the evolution of Nigeria’s local content policy and its place in the country’s energy future.
He described as “misguided” the view that the absence of Final Investment Decisions (FIDs) in recent years was caused by the NCDMB’s enforcement of local content regulations. According to him, several broader government policies and global investment trends have shaped the current state of oil financing in Nigeria.
“There are many government policies that are affecting FIDs,” Nwapa noted, explaining that the oil and gas industry now operates in a complex global environment shaped by energy transition pressures, shifting investment flows, and rising expectations for local participation.
Nwapa, who also served as Group General Manager of the Nigerian Content Division at the NNPC between 2005 and 2010 and is a Fellow of the Nigerian Society of Engineers (FNSE), acknowledged that local content implementation continues to face resistance from a few stakeholders. He pointed out that critics have consistently questioned the relevance of the policy since its inception, often using perceived bureaucratic bottlenecks as an excuse to roll back progress.
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He also highlighted emerging challenges around the Presidential Directives issued in February 2024, noting that “unintended ambiguities” in those directives have created some confusion across the sector. He urged stakeholders to address these gaps quickly to prevent systemic issues that could weaken the authority of the Board.
“There has to be institutional adjustment to re-enact the authority in the NCDMB directives,” he said, expressing concern over what he called a “growing disregard” for NCDMB’s regulatory powers by some players, insisting that the Board’s directives remain the guiding standard for all Nigerian content operations.
Tracing the roots of local content in Nigeria’s oil industry, he referenced several earlier policies and institutions, from the Petroleum Act of 1969 and PTDF to NAPIMS and the Cabotage Act of 2003, but emphasised that none matched the impact of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010.
“Our young engineers and technicians now have places to acquire practical skills,” he said, citing the SHI-MCI Yard in Tarkwa Bay, Lagos, as an example of how local content has deepened industrial participation. “The number of Nigerians who worked on the Egina project is proof that this policy is building real capacity. There are serious consequences for failure of what we have started.”
He acknowledged the ongoing debate about the cost of local content implementation but maintained that avoiding the process entirely would widen the cost gap over time. “It is either we choose to build capacity now and gradually reduce costs or abandon the goal completely,” he said.
On project costs, he advised that each development should be evaluated on a project-by-project basis and handled strategically by the Board. He added that “NCDMB has the power to do that, working with the industry players who would provide the information and matrices.”
On the future of the Nigerian Content Academy, Nwapa urged the institution to serve as a think tank for testing theories, fostering research, and proposing practical solutions that could inform national policy.
“The Academy should be a place where we test theories, go outside to the field, and have strong workshop discussions and analysis that can produce practical recommendations,” he said. “Those recommendations can then be forwarded to the NCDMB Executive Secretary or even up to the Presidency.”
The session was moderated by Dr Ama Ikuru, Director of the Nigerian Content Academy, who later invited questions and comments from the participants. Among them was Mr Simeon Ogari, Nigerian Content Manager of SEPLAT Energy Limited, who sought clarification on the existence of two qualification systems, the Nigerian Oil and Gas Industry Content (NOGIC) Joint Qualification System (JQS) and the one operated by the Nigerian Petroleum Exchange (NIPEX).
In response, Nwapa explained that the dual systems had existed for some time but had not disrupted industry operations, adding that differences between the two platforms could be resolved over time.
Other participants who sought clarifications included Mr Isoboye Amachree of Oando PLC, Mr Kamselem Mohammed, and Barrister Naboth Onyesoh, Director of Legal Services at NCDMB.
The Lecture Series, which is held weekly, is designed to deepen understanding of Nigeria’s oil and gas ecosystem and equip stakeholders with insights that can strengthen local participation and long-term industry sustainability.
