…The masterclass, guided by NCDMB experts, showcased actionable frameworks, innovative tools and strategic investments that are propelling local content development in Nigeria
THUR NOV 07 2024-theGBJournal| During a pre-conference workshop at African Energy Week 2024 (AEW): Invest in African Energy, a Local Content Masterclass, sponsored by state-owned Nigerian Content Development and Monitoring Board (NCDMB), highlighted strategies to strengthen indigenous participation in the African oil and gas industry.
Led by experts from NCDMB, the masterclass highlighted strategies and achievements for building Nigeria’s local content capacities.
Abayomi Bamidele, Head of Project Certification and Authorization at NCDMB, set the tone for the discussion by underscoring the importance of local content development.
He traced the establishment of the NCDMB back to the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010, which provides the framework for guiding and monitoring local content practices. “Our mandate is to implement procedures that ensure indigenous participation in Nigeria’s extractive industry,” he said.
Dokubo Philip Obongo, Manager of Institutional Strengthening at the Capacity Building Directorate at NCDMB, expanded on the industry’s current landscape, presenting key statistics: “Nigeria holds 37 billion barrels of oil reserves, 206.53 trillion cubic feet of gas, a population of 220 million – 60% of which is working class – and a growing $374 billion GDP.”
Obongo highlighted early challenges in focusing primarily on crude oil production without adequate attention to local workforce development and machinery. Addressing these, he detailed six key pillars for promoting local content: regulatory frameworks, gap analysis, capacity building, funding, research and development (R&D) and market access.
Explaining the regulatory framework, Obongo emphasized the need for trust, transparency and clear rules, all grounded in the NOGICD Act. “The law must not only promote investments but also adapt to local realities,” he stated, noting NCDMB’s role in setting in-country value benchmarks and ensuring oversight.
He then shifted to gap analysis, stressing the importance of data. “In 2010, local content levels were below 5%. Today, we have achieved 54%, with a goal of reaching 70% by 2027,” he revealed. This progress comes from monitoring and setting tangible targets.
He also addressed capacity building, which NCDMB approaches through major project implementation and structured training. “Continuous, project-based training helps equip Nigerians to handle increasingly complex industry demands,” he explained.
Continuing the discussion, Ifeanyi Ukonu Ukoha, Director of Finance and Personnel Management at NCDMB, elaborated on the remaining pillars.
“Capital is king in supporting local content,” Ukoha said. Pointing out that the NOGICD Act mandates that 1% of upstream oil company budgets go towards local content initiatives, Ukoha explained their strategy to support energy stakeholders at NCDMB by promoting collaboration. “We’ve partnered with banks, like a $50 million collaboration with the Bank of Industry to support SMEs,” he shared.
Moving on to R&D, Ukoha emphasized stimulating local innovation. “Nigeria spends only 0.6% of GDP on R&D, compared to over 3.6% in the U.S.,” he noted. NCDMB has committed $50 million to research, aiming to commercialize innovations and foster collaboration between industry and academia. “We need to stay ahead of industry trends through continuous innovation,” he added.
The final pillar, access to markets, focuses on helping local companies scale commercially. “We hold market education workshops and encourage partnerships to ensure local players can compete effectively,” Ukoha explained. He emphasized the importance of aligning local market capabilities with the African Continental Free Trade Area while protecting investments and supporting regional growth.
Concluding the masterclass, Ukoha reiterated that local content is about domestication, not nationalization. “It’s a long-term business strategy, not corporate social responsibility,” he clarified.
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