Ncdmb eyes 70% local content in petroleum sector

NCDMB’s Ambitious Vision: Targeting 70% Local Content in Nigeria’s Petroleum Sector

Ncdmb eyes 70% local content in petroleum sector – Nigeria’s petroleum sector is undergoing a significant transformation, driven by the Nigerian Content Development and Monitoring Board (NCDMB). The Board’s goal is nothing short of revolutionary—achieving 70% local content in the oil and gas industry by 2027. This target is part of the broader objective to foster indigenous participation, boost local manufacturing, and reduce the country’s dependency on foreign expertise. As the world’s most populous Black nation, Nigeria is strategically positioning itself to become a key player in the global energy market, driven by its own people and resources.

The Strategic Roadmap to 70% Local Content

The NCDMB’s journey toward realizing 70% local content by 2027 is rooted in a meticulously crafted 10-year Strategic Roadmap. This roadmap outlines clear milestones aimed at progressively increasing the participation of Nigerian companies and workforce in the petroleum sector. The Board’s Executive Secretary, Felix Ogbe, emphasized that this ambitious target aligns with recent Presidential Directives on Local Content Implementation, which mandate that contracts in the oil and gas sector should prioritize local companies with established capabilities.

One of the cornerstone initiatives supporting this target is the Equipment Component Manufacturing Initiative, launched in 2013. This initiative has significantly contributed to building local manufacturing capacities, particularly in the production of essential oil and gas components. For instance, Nigerian companies like BEAMCO Nigeria Limited have risen to the occasion, manufacturing high-quality equipment such as pumps and valves for large-scale projects like the Nigeria Liquefied Natural Gas (NLNG) Train-7 project. Such successes underscore the viability of achieving the 70% local content goal by 2027.

Ncdmb eyes 70% local content in petroleum sector

Key Projects Driving Local Content Growth

Several high-profile projects underscore the progress being made under the NCDMB’s Strategic Roadmap. Notably, the NLNG Train-7 project is a critical component in the Board’s strategy. This multibillion-dollar project, located on Bonny Island, Rivers State, is set to provide a significant boost to Nigeria’s natural gas production. More importantly, it offers extensive opportunities for local content, with Nigerian companies supplying key equipment and services.

The NCDMB has also been instrumental in facilitating the participation of local contractors in other major projects. For example, the Final Investment Decision (FID) on the Ubeta Field Development Project, executed by TotalEnergies and the Nigerian National Petroleum Company (NNPC) Limited, marks another milestone. This project is expected to add over 350 million standard cubic feet of gas per day to Nigeria’s production capacity, with substantial input from local service providers.

Additionally, the NEDOGAS Kwale Gas Gathering and Injection facility in Delta State represents a significant advancement in Nigeria’s gas flare-out policy. This facility, developed in partnership with the NCDMB, exemplifies how local content can be integrated into critical infrastructure projects, further solidifying Nigeria’s position in the global energy landscape.

Enhancing In-Country Value Addition

The NCDMB’s commitment to increasing local content extends beyond just policy frameworks; it is actively fostering in-country value addition through strategic partnerships and initiatives. For instance, the collaboration between the NCDMB, Saipem-Daewoo Joint Venture, and BEAMCO Nigeria Limited is a shining example. Through this partnership, locally assembled pumps and valves are now being installed as part of the NLNG Train-7 project. Such achievements are not only creating jobs but also enhancing Nigeria’s industrial base and technical expertise.

Furthermore, the Board’s initiative to issue Nigerian Content Equipment Certificates has been pivotal in ensuring that only qualified local manufacturers participate in equipment supply for the oil and gas industry. This move has effectively blocked the entry of substandard products into the market, while simultaneously encouraging local manufacturers to improve their processes and products. The result is a competitive environment where Nigerian companies are now able to meet global standards, making them more attractive partners in the global oil and gas supply chain.

The Path Forward: Challenges and Opportunities

While the NCDMB’s target of 70% local content by 2027 is commendable, the path to achieving this goal is not without challenges. One of the primary hurdles is the need to continuously build capacity among local companies to meet the complex demands of the oil and gas sector. The industry’s technical nature requires highly specialized skills, advanced technology, and substantial financial investment—all of which are areas where Nigerian firms have traditionally lagged behind their international counterparts.

To address these challenges, the NCDMB is focused on creating an enabling environment that encourages investment in local capacity building. This includes fostering collaborations between Nigerian firms and their international counterparts, providing financial support for local enterprises, and ensuring that policies are in place to protect and promote indigenous businesses. The Board is also working to streamline regulatory processes, reduce bureaucratic bottlenecks, and provide the necessary infrastructure to support local manufacturing and services.

In addition, the NCDMB is committed to fostering innovation within the Nigerian oil and gas sector. For instance, the development of the Amal Technologies Gas Leak Detection Device and Printed Circuit Board manufacturing facility in Abuja highlights the potential for indigenous technological innovation. This facility represents a significant leap forward in addressing the challenges faced by the industry and serves as a model for future projects.

Conclusion

The NCDMB’s target of 70% local content in Nigeria’s petroleum sector by 2027 is a bold and ambitious vision that has the potential to transform the industry and the nation’s economy. Through strategic planning, robust policies, and active partnerships, the Board is steadily progressing toward this goal. However, achieving this milestone will require sustained commitment from all stakeholders—government, industry players, and local communities alike.

As Nigeria continues to push the boundaries of local content in its oil and gas sector, the benefits will extend beyond economic growth. The country will see increased job creation, enhanced technological capacity, and a stronger global standing as a key player in the energy market. The journey to 2027 is a challenging one, but with the right strategies in place, Nigeria is well on its way to achieving a more self-reliant and prosperous future.