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Time To Implement Local Content Act 2010

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A visit to Nigeria airports, especially the Port Harcourt International Airport, Omagwa shows an influx of so-called foreign experts into the country almost on daily basis. When asked who they are and where they are going, the answer is always, “they are expatriates coming for one oil company or another. With this observation, one is poised to ask whether the oil companies in the country are actually working in consonance with the Nigerian Oil and Gas Industry Content Development Act, 2010.

President Goodluck Jonathan in September 2010 inaugurated the Governing Council of the Nigerian Content Development and Monitoring Board (NCDMB) during which he charged the board to ensure that its activities impacted on the oil and gas sector. He said the initiative must count on indigenous capacity development in the oil and gas industry. With the inauguration, the NCDMB was fully equipped to commence operations to meet the expectation of Nigerians in the gradual but sustainable implementation of the Nigerian Content Act.

The Nigerian Oil and Gas Industry Content Development Act, 2010 aims to provide for the development of Nigerian content in the Nigerian oil and gas industry, Nigerian content plan, supervision, coordination, monitoring and implementation of Nigerian content and for related matters. Enacted by the National Assembly of Nigeria, the Act, not withstanding anything to the contrary contained in the Petroleum Act, which shall apply to all matters pertaining to Nigerian content in respect of all operations or transactions, carried out in or connected with the Nigerian oil and gas industry.

And among other matters, all regulatory authorities, operators, contractors, subcontractors, alliance partners and other entities involved in any project, operation, activity or transaction in the Nigerian oil and gas industry shall consider Nigeria content as an important element of their overall project development and management philosophy for project execution.

The Executive Secretary of the NCDMB, Mr Ernest Nwapa on Thursday at the 2012 Nigerian Oil and Gas (NOG) conference in Abuja explained that the implementation of the Nigerian Oil and Gas Industry Content Development (NOGIC) Act was geared to bring Nigerian jobs back home. Mr Nwapa said the board would ensure that all technology required to develop the local content was deployed to the country to create greater opportunities for Nigerians, pointing out that the emphasis of the Federal Government with the implementation of the Act was not only to retain the bulk of the annual oil and gas industry spend in the country, but ultimately to create employment for millions of Nigerians on the back of oil and gas industry operations.

He noted that most countries around the world were currently working towards bringing back jobs for their nationals in the wake of the global economic crisis and urged all stakeholders to support this agenda of the Federal Government. According to Nwapa, keeping the cost of production reasonable and meeting work schedules are critical to national revenue.

With the caliber of members of the Governing Council of the Nigerian Content Development and Monitoring Board head by the Minister of Petroleum Resources, Mrs Diezani Alison-Madueke, one would have thought that the Act should have by now been strictly enforced for compliance by oil and gas companies in the country. The Act if properly enforced will propel Nigeria into becoming one of the world’s industrialised economies in the next decade.

Nigeria needs to urgently address the issue of local capacity in the oil and gas industry so as to take advantage of expected investments and guard against the repeat of past mistakes where most goods and services used in the industry were imported, while facilities that were built suffered from inadequate after sales service support. The preference for importing almost all the goods and services used by the industry from abroad is steadily eliminating opportunities to develop human and infrastructural capacity, thereby impoverishing our people and stultifying national economic development.

We must ensure that our implementation efforts do not fail and we must be consistent and unwavering in order to transform our industry from an importer of goods and services to an industry that can source its key imputs from local resources. The oil and gas industry can generate manufacturing activities to support its operations and employment and domicile significant proportions of its derivatives as well as trap commensurate revenue in Nigeria to develop the fabrication yards, shipyards and manufacturing plants to industrialise our economy.

Major cities like Lagos, Abuja, Port Harcourt, Kano, Jos, to mention just a few, like the proverbial honeybee, easily attract prospective foreigners into the country so must and many foreign experts who appear to have literarily struck gold in the country capitalise on the quest of industries for them to simply hijack available positions meant for indigenes. These industries, particularly the oil multinationals refuse to know that Nigerians also have the right skills that are high on demand.

An immigration official who did not want his name on print because he had no authority to speak on the issue, revealed to journalists that the office receives hundreds of applications from prospective foreigners seeking temporary permits in the country on daily basis. His words: “In recent time, we have been receiving a deluge of applications form would-be expatriates seeking work permits. What we do when such applications come, under the circumstance, is to do thorough background checks and treat each ease on its merit”.

Investigations have revealed that foreigners appear to dominate key sectors of the country’s economy such as oil and gas, energy and power, construction, telecommunications, real estate, banking and finance, among others. The Vice Chairman, Broron Group of Companies, Mr Henry Ojogho, a conglomerate with interest in oil and gas, telecommunications, energy and power, in an interview disclosed that foreigners still dominate most businesses in the country today. Specifically citing the oil and gas industry, ojogho said that the country has the right local experts for most of these jobs.

He was, however, quick to admit that there are lots of handicaps militating against the capacity of local experts to deliver on the job when compared to their peers abroad. “In Nigeria, I can tell you in all honesty that we have expertise that can compete favourably with their counterparts abroad but they are hamstrung by the lack of capacity. What do you make of a professional involved in seizure engineering who has no equipment to do these jobs?, he stressed.

The President of the Association of consulting Architect of Nigeria Architect Roti Delano,in another interview decried what he described as the “invasion of foreign architecture” in the country. He said: “We have had other foreign architects working in the country but the problem we are having now is the incursion of foreign architects practicing illegally in Nigeria. Some clients engage these people in ignorance and we know of clients, who when this is drawn to their attention, reverse the situation”.

Delano continued: “It is not only the clients that are encouraging foreign people coming to practice illegally in Nigeria, we have instances where the Federal Government engages foreign architects to work illegally in Nigeria. Part of the problems we are going through now is trying to make our clients realise that the Nigerian architects”. He recalled that when President Olusegun Obasanjo was Head of the Military Government in the 1970s and the country was building the second generation universities at the time, all the projects went to Nigerian artchitects provided they showed they have the technical expertise.

The cost of engaging a local architect or expert in any field is a fraction of what you pay the foreign person. Several studies have shown that in about 37 countries, Nigerian professionals earn the least pay while the Federal Government pays a lot of money for consultancy services for those coming from abroad. The government flies them in an pays them heavily for what other Nigerians here can do in a lesser time than the foreigner can achieve. The government must look into this.

Expenditure in the industrial sector of the country must transcend returns in terms of revenue and also translate to local capacity, increased technological growth, jobs for Nigerians, assets and develop critical facilities and infrastructure to support performance of work scopes in Nigeria.

It is now necessary for the Governing Council of the Nigerian Content Development and Monitoring  Board to develop partnership between local and international companies, government, and gas companies and the private sector of the economy and create linkage with all sectors of the economy, local banks and global financing institutions to create the enabling environment for local capacity building. There must be developments in our supply chain management, the integration of government programmes such as Small and Medium Enterprises, training by the Petroleum Training and Development Fund (PTDF), Industrial Training Fund (ITF), National Office for Technology Acquisition and Promotion (NOTAP), to build local capabilities across board and transfer the technological experience inherent in the oil and gas industry to other sectors like transportation, construction, telecommunications, power, defence, maritime among others.

The NCDMB should create access to funds by leveraging the reforms in the banking sector to design interventions that support local companies with low interests and long-term loans. The board should also sensitise indigenes of oil producing communities on government’s genuine intentions to empower their youths, protect the environment, secure lives and property and ensure their participation in economic activities to maintain the tranquil environment required to support productive industry activities.

 

Shedie Okpara

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NCDMB Unveils $100m Equity Investment Scheme, Says Nigerian Content Hits 61% In 2025 ………As Board Plans Technology Challenge, Research and Development Fair In 2026

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The Nigerian Content Development and Monitoring Board (NCDMB), has unveiled a $100 million Equity Investment Scheme among a raft of fresh initiatives to bolster indigenous capacity and participation in the oil and gas industry.
Executive Secretary of the Board, Engr. Felix Omatsola Ogbe, disclosed this while delivering his keynote address at the opening of the 14th Practical Nigerian Content Forum, held in Yenagoa, Bayelsa State.
Ogbe said the $100 million Equity Investment Scheme would provide equity financing to high-growth indigenous energy service companies, while diversifying the income base of the Nigerian Content Development Fund (NCDF).
In furtherance of the scheme, a memorandum of understanding (MOU) was signed at the event between Engr. Ogbe and the Managing Director of the Bank of Industry, Dr. Olasupo Olusi toward the management of the scheme, which is a new product of the Nigerian Content Intervention Fund (NCI Fund).
The NCDMB Scribe also announced that 61 per cent Nigerian Content level has already been attained in the oil and gas sector by the third quarter of 2025 from projects being monitored by the Board.
Ogbe further expressed the board’s readiness to onboard a new set of Project 100 Companies after the successful implementation of approved interventions relating to the first set of Project 100 Companies, launched in 2019, for which an exit plan is slated for April 2026.
The ‘Project 100 Companies’, TheTide learnt, is an initiative of the Ministry of Petroleum Resources and the NCDMB under which 100 indigenous companies in the oil and gas industry were nurtured and empowered to higher levels of competitiveness through capacity building and access to market opportunities.
The NCDMB helmsman also said the Board has concluded plans to launch its NCDMB Technology Challenge in the first quarter of 2026 and to hold a Research and Development Fair in the second quarter of 2026.
In addition to its ongoing initiatives, the board further stated that a review of its seven current guidelines would be undertaken between the first and second quarter of 2026.
“The Board has completed the framework for issuance of NCDF Compliance Certificate, an instrument to confirm that a company in the oil and gas industry has complied with the one per cent remittance obligations.
“The Certificate will become effective on Ist January 2026 and would be required to obtain key permits and approvals from the Board”, Ogbe said.
In his address, the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, said the theme of the PNC Forum, “Securing Investments, Strengthening Local Content, and Scaling Energy Production,” captures Nigeria’s national priorities that guide interventions by the Board and his Ministry.
He insisted that investment remains the lifeblood of the energy sector, and that the Board and the Ministry were committed to providing stable policies, transparent processes, and market-driven incentives, to attract long-term capital,  assuring that the ministry would continue to strengthen local capacity across fabrication, engineering, technology services, manufacturing of components, and research and development.
On his part, the Minster of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, noted with satisfaction that a decade-long stagnation in the oil and gas industry was overcame with the enactment of the long-delayed Petroleum Industry Act (PIA), 2021, and Presidential Directives issued by the Administration of President Bola Ahmed Tinubu in March 2024.
He said Nigeria has regained investor-confidence as signalled by the recent surge in FIDs and the increase of oil rigs from 14 to over 60, with 40 currently in active service.
“Our investment climate now is globally competitive, our fiscal terms are globally competitive. Our policies must be seen to be consistent at all times. The Federal Government is prepared to support Nigerian Content and the oil and gas industry, but then, things have to be done responsibly., he said.
In a goodwill message, the Managing Director, BOI, Dr. Olasupo Olusi, said that the collaboration between the NCDMB and BOI marked a significant expansion of a longstanding relationship, while assuring that through the $100 million NCIF Equity Investment Fund, the Bank of Industry would deploy equity and quasi-equity capital to support high-potential Nigerian companies to complement traditional debt financing and strengthening access to the long-term risk capital required for scale, competitiveness, and value creation.
“With a single obligor limit of $5 million, the Fund is designed to catalyze multiple high-impact investments while maintaining strong governance and prudent risk management”, the BOI Managing Director said.
On her part, the Special Adviser to the President on Energy, Mrs. Olu A. Verheijen, commended the NCDMB for sustaining the PNC Forum, which she said, accelerates change, drives competitiveness, and pushes the industry toward global standards.
She urged stakeholders to remain intentional and not incidental about in-country value addition, as they chart the path toward building a resilient, competitive industrial base in Nigeria.
By;  Ariwera Ibibo-Howells, Yenagoa
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Power Supply Boost: FG Begins Payment Of N185bn Gas Debt

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In the bid to revitalise the gas industry and stabilise power generation, President Bola Ahmed Tinubu has authorised the settlement of N185 billion in long-standing debts owed to natural gas producers.

The N185 billion legacy government obligations to gas producers for past supplies had strained cash flow and hindered operations, discouraged further exploration and production, and reduced gas supply for power generation, thereby worsening Nigeria’s power shortages and unreliable electricity supply.

The payment, to be executed through a royalty-offset arrangement, is expected to restore confidence among domestic and international gas suppliers who have long expressed concern about persistent indebtedness in the sector.

Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said the move, endorsed by the National Economic Council (NEC) headed by Vice President, Kashim Shettima, marked one of the most significant interventions in Nigeria’s energy sector in recent years.
In a statement issued by the his Spokesman, Louis Ibrahim, Ekpo described the approval as a “decisive step towards revitalising Nigeria’s gas sector and strengthening its power-generation capacity in a sustainable manner,”
While noting that the intervention aligned with the ‘Decade of Gas’ initiative, which aims to unlock more than 12 billion cubic feet per day (bcf/d) of gas supply by 2030, Ekpo said clearing the arrears would deliver wide-ranging benefits, beginning with restoring investor confidence in the sector.

According to him, settling the debts is crucial to rebuilding trust between the government and gas producers, many of whom have withheld or slowed new investments due to uncertainty over payments.

Ekpo explained that improved financial stability would help revive upstream activity by accelerating exploration and production, ultimately boosting Nigeria’s gas output adding that Increased gas supply would also boost power generation and ease the long-standing electricity shortages that continue to hinder businesses across the country.

The minister noted that these gains were expected to stimulate broader economic growth, as reliable energy underpins industrialisation, job creation and competitiveness.

In his intervention, Coordinating Director of the Decade of Gas Secretariat, Ed Ubong, said the approved plan to clear gas-to-power debts sends a powerful signal of commitment from the President to address structural weaknesses across the value chain.

“This decision underlines the federal government’s determination to clear legacy liabilities and give gas producers the confidence that supplies to power generation will be honoured. It could unlock stalled projects, revive investor interest and rebuild momentum behind Nigeria’s transition to a gas-driven economy,” Ubong said.

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The AI Revolution Reshaping the Global Mining Industry

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The global mining industry is undergoing a rapid digital transformation, driven by the dual pressures of the energy transition and increasingly complex extraction environments. A new market report projects the global Artificial Intelligence (AI) in mining market will nearly quadruple in value over the next seven years, reaching $9.93 billion by 2032.
This surge in adoption comes as miners face a “perfect storm” of challenges: declining ore grades, labor shortages, and an insatiable global appetite for the critical minerals required to power electric vehicles (EVs) and renewable energy grids.
According to data released this week, the market for AI in mining is valued at approximately $2.6 billion in 2025 and is expected to expand at a Compound Annual Growth Rate (CAGR) of 21.1 percent through 2032.
While the mining sector has historically been viewed as slow to modernize, the need for efficiency is forcing a change. The integration of autonomous haulage systems, predictive maintenance analytics, and “digital twins”—virtual replicas of physical mine sites—is shifting from pilot projects to standard operational necessity.
The “Operations & Process Optimization” segment is currently the dominant application, expected to account for more than 35 percent of the market in 2025. This technology allows companies to squeeze higher yields out of lower-quality rock, a capability that is becoming essential as easily accessible high-grade deposits are depleted worldwide.
The driving force behind this investment is the global scramble for critical minerals. The report highlights that the metal mining segment held the largest market share in 2024, directly correlated to the demand for lithium, copper, cobalt, and nickel—the backbone of the green energy economy.
“Metal mining operations involve highly complex processes—from ore body modeling and exploration to drilling, blasting, grinding, and material movement,” the report notes.
“AI supports these functions through predictive analytics… enabling cost reduction and higher yield recovery.”
For Western nations, this technological pivot also holds geopolitical weight. With China currently dominating the processing of rare earth elements, Western mining majors are under pressure to ramp up domestic production and efficiency to secure supply chains for battery manufacturing and clean energy infrastructure.
Beyond productivity, the industry is leveraging AI to address its most persistent operational risk: safety. The “Safety, Security & Environmental” segment is projected to record the highest growth rate during the forecast period.
Mining remains one of the world’s most hazardous heavy industries. Companies are increasingly deploying AI-powered video analytics and real-time worker tracking to prevent accidents involving heavy machinery and to monitor for gas leaks or ventilation failures in underground operations.
Furthermore, stricter Environmental, Social, and Governance (ESG) criteria from investors are pushing miners to adopt AI for environmental compliance. New tools allow operators to monitor tailings dams for stability, track emissions in real-time, and optimize water usage, ensuring that the intensifying race for minerals does not come at the cost of environmental stewardship.
Geographically, the Asia Pacific region commanded the largest share of the AI in mining market in 2024 and is expected to maintain the highest growth rate.
This dominance is underpinned by massive production volumes in China and Australia. Major industry players in the region, including BHP and Rio Tinto, have been early adopters of autonomous technologies. In Western Australia, for example, autonomous haulage trucks and drill rigs are already commonplace, moving millions of tons of iron ore with minimal human intervention.
China’s adoption is further accelerated by government support for “smart mining” initiatives aimed at modernizing its vast coal and mineral sectors to reduce fatalities and improve environmental performance.
As the world moves toward 2032, the “mine of the future” will likely bear little resemblance to the labor-intensive operations of the past. With generative AI now entering the sector to assist in complex mine planning and exploration, the industry is pivoting toward a model where data is as valuable as the ore itself. For energy markets, this efficiency is not just a bonus; it is a prerequisite for meeting the material demands of a decarbonized world.
By: Charles Kennedy
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