Key points
- NCDMB will begin a nationwide joint capacity audit of oil and gas service providers in the third quarter.
- The board will introduce a harmonised five-class contractor grading system across the industry.
- The reforms aim to eliminate intermediaries and ensure contracts go to companies with proven technical capacity.
- The initiative is expected to strengthen local content and support upcoming deep-water oil projects.
Main story
The Nigerian Content Development and Monitoring Board (NCDMB) says it will commence a nationwide joint capacity audit of oil and gas service providers in the third quarter as part of efforts to strengthen local content and improve contract awards in the industry.
Executive Secretary of the NCDMB, Mr Felix Ogbe, disclosed this on Monday while delivering the keynote address at the 2026 Nigeria Oil and Gas (NOG) Energy Week in Abuja.
Represented by the board’s Director of Capacity Building, Mr Abayomi Bamidele, Ogbe said the exercise would physically verify the facilities and operational capabilities of manufacturers and service providers rather than rely solely on documents submitted online.
He said the audit would provide a clear picture of in-country capacity, eliminate intermediaries, improve contracting timelines and ensure genuine Nigerian manufacturers and service providers receive direct patronage.
According to him, the findings will also guide investment decisions, technology partnerships, financing support and policy interventions across the industry.
Ogbe said the board would also introduce a harmonised five-class contractor grading system to replace the different classification models currently used by regulators.
He said the uniform grading framework would establish a single industry-wide standard and ensure that only companies with proven technical capacity are awarded contracts.
According to him, the reforms were jointly developed by the NCDMB, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), NipeX, the Petroleum Technology Association of Nigeria (PETAN), the Oil Producers Trade Section (OPTS) and other stakeholders in line with the Presidential Directive on Local Content Compliance.
Ogbe said the reforms had become necessary as Nigeria prepares for major deep-water oil projects, adding that the board needed to determine the capacity of indigenous firms and identify areas requiring further support.
He reaffirmed the board’s commitment to achieving 70 per cent Nigerian content, saying the next phase of implementation would focus on expanding local capacity beyond regulatory compliance.
The issues
Nigeria’s local content policy is aimed at increasing indigenous participation in the oil and gas industry by promoting the use of local companies, goods and services. However, concerns over contractor classification, the use of intermediaries and inadequate capacity verification have continued to affect contract awards. The planned audit and harmonised grading system are intended to improve transparency, strengthen local manufacturing and ensure investment decisions are based on verified industrial capacity.
What’s being said
“The outcome of the in-country capacity audit will provide a detailed understanding of existing capabilities, eliminate intermediaries, improve contracting cycle timelines, and ensure direct patronage of established service providers for business sustainability and growth.” — Felix Ogbe, Executive Secretary, NCDMB
“The audit will also provide government and investors with accurate information on available industrial capacity.” — Felix Ogbe
What’s next
The NCDMB is expected to begin the joint capacity audit in the third quarter, while work continues on modifying industry certification portals ahead of the rollout of the harmonised contractor grading system.
Bottom line
The NCDMB is overhauling contractor verification and classification in Nigeria’s oil and gas industry, with a nationwide capacity audit expected to improve transparency, strengthen local content and ensure contracts are awarded to companies with verified capabilities.
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