NCDMB: Nigeria Local Content Surges From 5% To 61%

• The Nigerian Content Development and Monitoring Board (NCDMB) recently honored 14 retired employees for their contributions to local content growth.
• Local content in Nigeria's oil and gas industry has increased from approximately 5% in 2010 to 61%.
• Initial implementation of the Nigerian Oil and Gas Industry Content Development Act, 2010, faced resistance but was overcome through tact and engagement.
• The $350 million Nigerian Content Intervention Fund has significantly boosted indigenous participation by providing single-digit interest loans for asset acquisition and expansion.
• NCDMB's efforts in staff training, R&D, and establishing ICT centers have further supported indigenous capacity building and digital awareness.

Local content penetration in the Nigerian oil and gas sector has surged from approximately five percent in 2010 to an impressive sixty-one percent.

The Nigerian Content Development and Monitoring Board (NCDMB) recently honored fourteen of its former employees, acknowledging their pivotal roles in fostering the growth of local content within Nigeria's vital oil and gas sector. The recognition took place at a celebratory dinner held on Sunday at the Nigerian Content Tower Conference Centre in Yenagoa, Bayelsa State. This event served not only as a tribute to the retirees' service but also as a significant occasion for former senior management to reflect on the initial hurdles and subsequent triumphs in implementing the Nigerian Oil and Gas Industry Content Development Act, 2010.

A key highlight of the reflections was the remarkable expansion of local participation in the industry. According to former Director of Legal Services, Mohammed Umar, local content penetration in the Nigerian oil and gas sector has surged from approximately five percent in 2010 to an impressive sixty-one percent. This substantial increase underscores a major NCDMB local content achievement, transforming the landscape of indigenous involvement.

Mohammed Umar elaborated on the initial challenges faced by the NCDMB in enforcing the provisions of the Nigerian Oil and Gas Industry Content Development Act, 2010. He noted that the concept of local content was nascent in the sector, leading to considerable resistance from major industry players. The Board, therefore, had to employ strategic tact and persistent engagement to persuade operators about the long-term benefits of adhering to the local content regulations, ultimately fostering NCDMB compliance oil gas. Umar emphasized that companies were initially uncooperative, necessitating a careful approach to build understanding and ensure adherence.

Further insights into the Board's developmental journey were provided by Daziba Obah, who served as the pioneer Director of Planning, Research and Statistics and later as Acting Executive Secretary. Obah recounted the difficulties encountered during the construction of the seventeen-storey Nigerian Content Tower, a symbol of the Board's commitment. He also highlighted the early struggles in securing funding for crucial research and development projects. Despite these obstacles, the NCDMB demonstrated its growing capabilities by successfully organizing its inaugural Research and Development Fair and Conference in Lagos in 2017, marking a significant step in fostering innovation and indigenous expertise.

The success story of Nigeria oil gas indigenous participation is significantly linked to strategic financial instruments, as highlighted by Isaac Yalah, a former Director of Planning, Research and Statistics. Yalah pointed to the $350 million Nigerian Content Intervention Fund as a "game changer" for indigenous companies. This fund has played a crucial role in boosting their involvement in the oil and gas sector, enabling Nigerian service companies to access capital at single-digit interest rates. These accessible funds have been instrumental in allowing these companies to acquire essential assets and expand their operational capacities, demonstrating the profound Nigerian Content Intervention Fund impact.

Beyond financial support, the NCDMB's commitment to human capital development has also been crucial. Dr. Ginah Ginah, former General Manager for Corporate Communications and Zonal Coordination, reflected on his "very exciting times" at the Board, noting how its training programs significantly contributed to staff development. Furthermore, the establishment of Information and Communication Technology centers by the NCDMB has been vital in promoting digital awareness among young people residing in oil-producing communities. Felix Ogbe, the Executive Secretary, underscored that the honored retirees contributed not only through their official duties but also by mentoring colleagues, sharing invaluable knowledge, and building robust institutional relationships, solidifying the NCDMB's foundation for continued success.

This article underscores the NCDMB's sustained success in enforcing the Nigerian Oil and Gas Industry Content Development Act, 2010. Lawyers advising oil and gas clients in Nigeria should note the continued robust implementation of local content requirements and the availability of the Nigerian Content Intervention Fund for indigenous participation.

Source: Original reporting via Punch