KEY POINTS
• NCDMB says Nigerian content in the oil and gas industry has risen from five per cent in 2010 to 61 per cent.
• The board says its next priority is to make Nigerian companies competitive enough to operate in international markets.
• More than 10,000 Nigerians have been trained in critical skills, while 17,000 have registered for training in 10 priority areas.
MAIN STORY
Nigerian content in the oil and gas industry has risen from five per cent in 2010 to 61 per cent, but the Nigerian Content Development and Monitoring Board, NCDMB, says local companies must now build the capacity to compete beyond Nigeria.
The Executive Secretary of the NCDMB, Felix Ogbe, stated this in a speech delivered at the 2026 Association of Energy Correspondents of Nigeria, NAEC, Conference in Lagos on Thursday. He was represented by the board’s General Manager, Corporate Communications, Dr Obinna Ezeobi.
Ogbe said competitiveness would be the board’s next priority as the current 10 year Nigerian Content Plan approaches its end.
He said Nigerian companies needed to develop the capacity, skills and agility required to operate across international markets, arguing that participation in domestic projects alone was no longer sufficient.
“The next frontier is about being competitive,” he said.
According to Ogbe, Nigerian companies must move beyond having the capacity to execute projects within Nigeria and develop businesses capable of competing globally.
He said the NCDMB had trained more than 10,000 Nigerians in critical skills over the past 15 years, while another 17,000 Nigerians had registered for training in 10 priority skills required for emerging oil and gas projects.
The training programme, he said, was designed to prepare Nigerians for opportunities expected from new investments and Final Investment Decisions in the industry.
The board is also seeking to strengthen indigenous companies through financing, equipment development, research and development and strategic partnerships, Ogbe said.
He added that the NCDMB was promoting local manufacturing of equipment to reduce the industry’s dependence on imported components.
The board was also linking Nigerian companies with foreign firms and Original Equipment Manufacturers to strengthen their capabilities, while creating opportunities for indigenous businesses to expand into other African markets.
Ogbe said these efforts reflected a broader shift in the Nigerian content agenda, with the focus moving from participation in domestic projects to developing companies capable of competing internationally.
Earlier, the Chairman of NAEC, Ugo Amadi, said indigenous operators continued to face difficulties in developing oil and gas assets.
He identified high entry costs, lengthy approval processes and funding gaps as major constraints to indigenous participation.
According to Amadi, removing those barriers would help unlock investment, expand local capacity and increase production.
The conference, themed “Access to Assets: Empowering Players and Driving Growth,” brought together policymakers, regulators and industry leaders to examine barriers to investment and indigenous participation in Nigeria’s energy sector.
THE ISSUES
- NCDMB’s reported increase in Nigerian content from five per cent in 2010 to 61 per cent marks a substantial expansion in local participation in the oil and gas industry. The board is now seeking to extend that progress by focusing on the ability of Nigerian companies to compete internationally.
- Skills development is a major part of the board’s strategy. More than 10,000 Nigerians have received training in critical skills over 15 years, while 17,000 others are registered for training in 10 priority areas linked to emerging oil and gas projects.
- The NCDMB is also using financing, equipment development, research and development and strategic partnerships to strengthen indigenous companies. Its push for local equipment manufacturing is aimed at reducing dependence on imported components.
- Access to oil and gas assets remains a challenge for indigenous operators. NAEC identified high entry costs, lengthy approval processes and funding gaps as key barriers to greater local participation.
- The NCDMB’s focus is extending beyond Nigeria, with the board seeking to connect indigenous companies with foreign firms and OEMs and create opportunities for them to expand into other African markets.
WHAT’S BEING SAID
“The next frontier is about being competitive. – Felix Ogbe, Executive Secretary, NCDMB
“It is not enough to have the capacity to operate in Nigeria. It is not enough to have Nigerian content and products.” – Felix Ogbe, Executive Secretary, NCDMB
“Going forward, Nigerian companies need to be competitive and able to operate across the globe.” – Felix Ogbe, Executive Secretary, NCDMB
WHAT’S NEXT
The NCDMB is continuing its focus on skills development, financing, equipment development, research and development and strategic partnerships as it seeks to strengthen indigenous companies.
The board also plans to deepen connections between Nigerian companies, foreign firms and OEMs while opening opportunities for indigenous businesses in other African markets.
BOTTOM LINE
Nigeria has increased local content in its oil and gas industry substantially over the past 15 years. The NCDMB now wants the next phase to produce Nigerian companies capable of competing for opportunities beyond the domestic market.
