Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Felix Omatsola Ogbe, has restated the gains and successes accruing to oil and gas sector of the nation’s economy through the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, 2010.
He said the act has reset the oil and gas industry’s spendings and has also developed in-country capacity.
Ogbe, who spoke on the theme “Local Content and Sustainable Inclusive Economic Growth”, at the 2024 Namibia Oil and Gas Conference un Windhoek, noted that recent discoveries of hydrocarbon deposits have increased the oil and gas reserves of the continent to about 126 billion barrels of oil and about 614 trillion cubic feet of gas.
He noted that the adoption of local content policy for the oil and gas industry and other resources is a veritable means through which African countries can ensure that the utilization of their resources will translate to energy security, economic development, and industrialization of the continent.
The NCDMB boss said since the enactment of the NOGICD Act in 2010, Nigeria has recorded significant achievements, which, according to him, include the creation of over 30,000 direct jobs, over 15 million training man hours, award of over 90per cent of contracts to Nigerian-owned businesses, and utilisation of the expatriate management system to ensure 80per cent of oil companies’ management positions are held by Nigerians.
It also include growth of successful indigenous operators who are now responsible for the production of more than 60per cent of Nigeria’s domestic gas requirements and over 15per cent of crude oil production.
“As at the end of 2023, we have reached Nigerian Content level of 54per cent and we are committed to achieving the set target of 70per cent by 2027”, the Executive Secretary said.
Represented by the General Manager, Corporate Communications and Zonal Coordination, Esueme Dan Kikile, the NCDMB helmsman shared the Board’s experience as a regulator responsible for deepening and driving local content in the Nigerian oil and gas industry.
He noted that a successful local content policy must entail the deployment of six key parameters, namely, regulatory framework, gap analysis, capacity building, funding and incentives, research and development, and access to market.
According to him, a law, or decree, depending on the political arrangement in a country, sets the framework and boundaries for all local content practitioners.
“In Nigeria, the NOGICD Act of 2010 is the regulatory framework that drives local content policy. It’s a structured capacity-building intervention.
“It’s also necessary to foster the development of in-country capacities and capabilities, while gap analysis is to ensure that baseline and periodic gap evaluations are carried out to ascertain the human capacity and infrastructure deficits which will then form the basis for developing initiatives, projects, and programmes that will seek to close the identified gaps.
“In addition, local companies require incentives and low-interest, long-term funds to be able to develop their capacities which will, in turn, enable them to compete favourably in the oil and industry”, he said.
Ogbe emphasised the importance of research and development, which, he noted, would facilitate the development of innovative solutions to address peculiar challenges that are being experienced in a nation’s oil and gas industry.
He also underscored the necessity for access to market as developed capacities and capabilities that need patronage to be sustained.
“A market, within a country and across international boundaries, is imperative for the potential benefits of enhanced capabilities to be maximised.
“A robust local content implementation framework that serves as a blueprint, spelling out how local content policy will be implemented, also has to be in place. Five key components of the framework, as instituted by the NCDMB, are Analysis, Guidelines and Regulations, Implementation, Monitoring and Evaluation, and Feedback Mechanism.
“Faithful adherence to these elements accounts significantly for the success of local content practice in Nigeria”, he restated.
The Tide learnt that Namibia has estimated crude oil reserves of 11 billion barrels and gas reserves of 2.2 trillion cubic feet. Pages 15 and 16, Mon, Aug 26, 2024

By: Ariwera Ibibo-Howells, Yenagoa