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Nigeria’s Local Content Reforms Spark Mining Boom … Set Model for Africa
Management of the Nigerian Content Development and Monitoring Board (NCDMB) has said the Nigerian mining industry was undergoing a dramatic transformation, driven by targeted local content policies from the Board.
According to the NCDMB, the policies which were showcased at the African Natural Resources and Energy Investment Summit in Abuja, were now being hailed as a blueprint for industrial growth across Africa.
A statement from the Directorate of Corporate Communications of the Board says that at the heart of the reforms is the Board’s strategic intervention in the barite value chain, noting that this mineral is critical to oil and gas drilling.
In his remarks at the event, Executive Secretary of the Board, Engr. Felix Omatshola-Ogbe, outlined how the NCDMB has spent more than a decade building domestic capacity from certifying reserves in six states to mandating exclusive procurement from local processors through the Nigerian Content Equipment Certificate (NCEC).
“Today, barite importation for drilling is prohibited in Nigeria. That didn’t happen by accident. It was made possible by deliberate policy instruments, stakeholder partnerships, and enforcement frameworks”, Ogbe said.
Represented by the Director of Corporate Services, Dr. Abdulmalik Halilu, the NCDMB scribe said the interventions have boosted value retention, created jobs, and positioned Nigeria as a continental model for mineral-based industrialisation.
“Similar policies are being rolled out in the steel and pipe manufacturing sectors, including a 2022 directive requiring in-country sourcing of bare line pipes and oil tubular goods.
“The reforms are reinforced by broader industrial support programmes such as the Nigerian Oil and Gas Industrial Parks (NOGAPS) and a $350 million Nigerian Content Intervention Fund managed in partnership with the Bank of Industry to scale up local manufacturing”, Ogbe added.
In his remarks, the Minister for Solid Minerals, Dr. Dele Alake, said the clearest evidence of the reforms was visible in Nigeria’s expanding lithium and battery value chain, stressing that over $800 million in mining investments were secured in 2024 alone, following a major policy shift requiring all mining licences to include local processing plans.
“The Nasarawa lithium battery plant, valued at $100 million, is already up and running. We are no longer exporters of raw potential. We are builders of real value.
“A $600 million lithium refinery near the Kaduna–Niger border is on the way. These facilities are anchored on one thing: local content.
“Government revenue from mining surged from ?6 billion in 2023 to ?38 billion in 2024 — a six-fold increase credited to tighter licensing, enforcement of value-addition rules, and new industrial investments”, Alake said.
In his speech, Chairman, Liberia Petroleum Regulatory Authority, Jake Kabakola, said the impact of the NCDMB’S policies have also affected neighbouring nations, describing Nigeria’s local content regime as a “continental model”.
Kabakola urged African nations to adopt the NCDMB’S policies legal and institutional frameworks to unlock similar outcomes.
The statement from the NCDMB added that, “The shift is not just regulatory but economic. Indigenous Nigerian firms now contribute 15% of oil production and 60% of domestic gas supply.
“Engineering and fabrication companies such as Dormanlong, Saipem, and Aveon Offshore are executing complex projects previously handled by foreign multinationals.
“Beyond minerals and manufacturing, the NCDMB has also enforced local employment regulations through its partnership with COREN, ensuring that only certified Nigerian engineers are deployed on projects”.
Similarly, the Board said a Customs alert system now prevents the importation of goods, such as cables, paints, and valves that are produced locally.
“Local content is not a constraint. It’s an enabler. When deployed intentionally, it becomes a lever for self-sufficiency, industrial growth, and economic sovereignty”, the NCDMB boss noted.
The Tide gathered that as African leaders at the summit discussed regional energy integration and industrialisation, Nigeria’s example stood out with delegates praising the country for turning policy into measurable outcomes, from factory construction to formalised artisanal mining cooperatives and electric vehicle assembly plans.
In his speech, Nigeria’s Minister of Power, Adebayo Adelabu, emphasised that local content must be measurable, highlighting reforms under the Electricity Act 2023, which decentralised electricity governance and enabled 11 states to begin managing their own power markets.
He said the government is aligning its electrification drive with local manufacturing, including clean energy projects, meter assembly, and solar component production.
“The real value of local content lies in supply chains, technical jobs, and local ownership”, he said.
Also contributing at the summit, Kenya’s Minister of Mining and Blue Economy, Hassan Ali Jobbo, offered a cautionary note, urging African nations to define their own priorities in the minerals sector rather than simply adopting classifications imposed by others.
“Africa has talked too long about potential without decisive action. We must decide for ourselves which minerals are critical to our future, not wait for outsiders to tell us”, he said.
By: Ariwera Ibibo-Howells, Yenagoa