NCDMB targets gaps in local oil and gas equipment manufacturing
NCDMB is addressing manufacturing gaps to help indigenous companies produce critical oil and gas equipment and compete for industry contracts.
Nigeria is looking to expand its domestic manufacturing of critical oil and gas equipment, as industry stakeholders work to address capacity gaps that have kept the country reliant on imported components used in oil and gas operations.
The Nigerian Content Development and Monitoring Board (NCDMB) recently convened stakeholders in Port Harcourt, Rivers State, to develop practical steps for implementing recommendations from an industry-wide study on local manufacturing. The initiative focuses on equipment and components, including pumps, valves, flanges, gaskets, bolts and nuts, metering solutions and instrument fittings.
These products are essential to maintaining oil and gas operations, while their procurement accounts for a significant share of industry operating and capital expenditure. Building local capacity to manufacture them could create more business opportunities for indigenous companies, retain a greater share of industry spending within Nigeria and strengthen the domestic supply chain.
The NCDMB commissioned an industry team to develop a strategy for in-country manufacturing of the components on 7 July 2022. The team submitted its report on 12 July 2023, identifying areas where local production could support the development of Nigerian content and reduce dependence on imported equipment.
Representing the Board’s Executive Secretary, Engr. Felix Omatsola Ogbe, at the stakeholders’ meeting, the General Manager of Institutional Development in the Capacity Building Directorate, Mr Olugbenga Sheba, said the initiative formed part of the Board’s broader effort to deepen technical capacity, promote industrialisation and increase value retained within Nigeria’s oil and gas industry.
He said domestic manufacturing would help indigenous enterprises strengthen their technical capabilities and compete more effectively for supply contracts linked to major oil and gas projects. However, achieving that goal will require companies to overcome existing limitations in skills, technology, infrastructure and production capacity.
The scale of the challenge emerged in a presentation by Mr Nander Salmwang, Assistant Manager of Institutional Strengthening in the Capacity Building Directorate. He disclosed that approximately 60 indigenous companies had been identified during the assessment, but only 18 met the required criteria.
The findings point to a gap between the number of businesses operating in the sector and those currently equipped to meet the requirements for manufacturing critical oil and gas components. Addressing that gap will require targeted support to help businesses improve their capabilities and meet industry standards.
Sheba identified infrastructure development, structured capacity-building programmes, improved access to capital, strategic partnerships and effective monitoring and enforcement as key priorities for implementing the study’s recommendations. He also called for stronger collaboration among the NCDMB, indigenous manufacturers, oil and gas operators, service companies, financial institutions and other industry participants.
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The initiative is linked to the Board’s 10-Year Strategic Roadmap, which targets 70 per cent Nigerian content by 2027. Sheba said the manufacturing programme would support the roadmap’s technical capability development pillar by addressing skills shortages, technology gaps and constraints affecting local production.
The NCDMB is also looking to existing financing and industrial infrastructure initiatives to support the effort. Mr Emmanuel Yusuf, Manager of the Nigerian Content Development Fund (NCDF), outlined funding opportunities available to indigenous companies and community contractors seeking to strengthen their businesses and participate more actively in the oil and gas supply chain.
The Nigerian Oil and Gas Park Scheme (NOGaPS) was also highlighted as part of the infrastructure needed to support local manufacturing. Industrial parks can provide facilities and an operating environment that help manufacturers establish production capabilities and serve industry demand.
The initiative draws support from the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, 2010, which provides for first consideration to Nigerian goods and services where applicable. The Act establishes a statutory basis for increasing indigenous participation, while the manufacturing programme seeks to develop the technical and industrial capacity needed to turn that opportunity into greater domestic production.
For Nigerian manufacturers, the opportunity extends beyond supplying individual components. Building a reliable local manufacturing base could strengthen their position in oil and gas procurement, create demand for technical skills and support the growth of businesses serving the wider industrial economy.
The stakeholders’ meeting provided a platform to examine existing opportunities, discuss obstacles to implementation and consider practical measures for increasing indigenous participation in equipment manufacturing. The next challenge will be translating the study’s recommendations into interventions that help more Nigerian companies meet industry requirements and produce critical components competitively at home.
