Nigerian Content Development and Monitoring Board, NCDMB, yesterday disclosed that it has achieved a 56 percent local content level in Nigeria’s oil and gas industry. NCDMB said efforts have been intensified to realize a 70 per cent local content level by 2027, adding that the country’s content transited from 20 percent in 2016 to 56 percent in 2024.
The Executive Secretary of the NCDMB, Engr. Felix Ogbe, made this known at the opening of the 13th Practical Nigerian Content Forum in Bayelsa on Tuesday. He also assured that the NCDMB remains committed to the Board’s program, Back to the Creek initiative, aimed at improving the human capacity of indigenes of oil and gas host communities including scholarships award for high educations learning. According to him, the Board is also committed to establishing a Revised Community Contractor fund to remove obstacles for community contractors as well as the establishment of Nigerian Content Academy in order to enhance the capacity of local operators. He said that the academy, resident at the NCDMB headquarters in Bayelsa State offers a range of courses while assuring that the Board would build befitting Zonal Offices in Akwa Ibom State, Rivers State and Delta State.
He said “this academy is a cornerstone of our commitment to enhancing local capacity in the oil and gas industry, in line with the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010. The Nigerian Content Academy is also a beacon of hope for employment. Our training programs are designed to prepare Nigerians for various roles within the sector, opening doors to new career paths and economic opportunities for local communities. Our academy offers a range of courses that cover every aspect of the oil and gas industry, from upstream exploration to downstream processing. As part of our commitment to further deepen Nigerian content in the oil and gas industry, we are committing to developing more conducive and befitting Zonal Offices. This will enable us to deploy our personnel across various Directorates to operate fully from our Zonal offices thereby making the Zonal offices to be fully operational.” Similarly, the Minister of State, Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, said: “Under the exemplary leadership of President Bola Ahmed Tinubu, the Ministry of Petroleum Resources – gas is aligning its policies with the aspirations of Nigerians, ensuring that local content remains a priority in all facets of our energy strategy.
“Through the Decade of Gas Initiative, we are accelerating the development of critical gas assets and infrastructure to further boost production and distribution of gas across the country and for export purposes. In the last 12 months, 2 critical gas projects with combined volumes of 600 MMSCF/day were completed.” According to him, “the projects already inaugurated included SEPLAT ASSA North – 300 MMSCF/Day, SPDC Ohaji south – 300 MMSCF/Day. Final investment decisions that will guarantee an additional 420 MMSCF/day of natural gas to existing production have been taken in the SPDC Iseni Project – 90 MMSCF/Day, TOTAL Ubeta Project – 330 MMSCF/Day while the SEPLAT Assa North and SPDC Ohaji South gas plants are already commissioned, critical pipeline infrastructure like the OB3 Gas Pipeline – This is a 48”/36”x 130km pipeline that runs from the Obiafu-Obrikom plant to Oben which sits at 97% completion and AKK – This is a 40”x 614 km pipeline from Ajaokuta-Kaduna-Kano currently at 77% completion.
“The OB3 Gas Pipeline and the AKK Gas Pipeline both present enormous prospects for local businesses engaged in construction, maintenance, operations, and security services as well as gas-based sectors like gas to power, gas to fertilizer and other manufacturing businesses along the lengthy corridors. By 2030, the country’s current gas production is expected to increase by almost 4 BCF/day, according to the Decade of Gas plans. At this point, we have accomplished 25% of this goal. Gas will be the mainstay of Nigeria’s energy shift, and we’re giving local businesses a chance to engage in gas distribution, processing, and power generation. The probable replacement for PMS has also been determined to be natural gas in the form of CNG. To encourage other solutions and alternatives to the massive payout from the nation, the President’s inauguration speech prohibited further fuel subsidy payments.
The Presidential CNG Initiative has greatly advanced the nation’s cause of switching from PMS to CNG-powered engines.” On his part, the Group Chief Executive Officer, Nigerian National Petroleum Company Limites, NNPCL, Mallam Mele Kyari, said: “Since the landmark enactment of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act in 2010, we have witnessed a profound transformation in local content development. “With its remarkable achievement, this pivotal legislation has empowered local businesses and ignited a wave of innovation, propelling us to the forefront of global competitiveness. Let’s take a moment to feel proud of these significant strides. The NCDMB has been a cornerstone in driving the local content agenda forward. NCDMB’s unwavering efforts, commitment, and strategic initiatives have reassured us that we are maximizing the benefits of our rich resources and supporting the industrialization efforts of companies that are actively providing services within the Nigerian energy sector.
The enactment of the Petroleum Industry Act (PIA) in 2021 further underscores our commitment to local content. This comprehensive framework not only promotes investment but also ensures transparency and sustainability in our operations, providing a secure and optimistic outlook for the future of local content development. Additionally, the recent Presidential Directive on Local Content Compliance Requirements for 2024 is a clear testament to our government’s commitment to prioritising local content as a key element of our national strategy. This directive should make us all feel secure and committed to the local content strategy.”
