The NCDMB has confirmed its commitment to President Tinubu’s 2024 directives, ensuring that only qualified local companies participate in oil and gas tenders.
The Nigerian Content Development and Monitoring Board (NCDMB) announced the removal of middlemen and briefcase investors from the country’s oil and gas industry, successfully reducing the contracting cycle to six months. This achievement is attributed to three Presidential Directives on Local Content operations issued by President Bola Tinubu in March 2024.
During a breakfast meeting with media executives in Lagos, NCDMB Executive Secretary Felix Ogbe stated that the board fully complied with the Presidential Directive on Local Content Compliance Requirements, 2024 (EO 41), which mandates that only local service companies with proven capabilities participate in tenders.
Ogbe also noted that the NCDMB has streamlined its processes and expedited project approvals in line with the Presidential Directive aimed at reducing costs and timelines in the petroleum sector (EO 42). These measures are intended to attract both local and international investments, expedite the development of oil and gas projects, and enhance the Nigerian economy.
He announced plans for a significant initiative called “Back to the Creeks,” which aims to demonstrate the impact of local content implementation in oil-producing communities across the country.
Responding to media inquiries, Ogbe rejected claims that local content implementation raises crude oil production costs. He explained that the primary factors contributing to increased costs are operational downtimes and disruptions due to community issues or technical difficulties. Additional challenges include security costs and the influence of briefcase contractors.
Regarding industry growth, Ogbe emphasized NCDMB’s efforts to create an environment conducive to final investment decisions by international oil companies and develop policies that support indigenous oil and gas service firms.
On insurance matters, he promised to revive guidelines established with the National Insurance Commission (NIACOM) in June 2022, aimed at encouraging the Nigerian oil and gas sector to utilize local insurance services.
Ogbe acknowledged that the success of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act and the Nigerian Content 10-year strategic roadmap relies heavily on public communication and support from key stakeholders. He expressed appreciation for the media’s role in promoting the board’s activities and assured that cooperation would be strengthened under his leadership.
The breakfast meeting served to formally introduce Ogbe to leading media figures, with other senior NCDMB officials in attendance, including the Director of Legal Services, Mr. Naboth Onyesoh.
In his remarks, Dr. Ama Ikuru, Director of Corporate Services and Capacity Building, urged media stakeholders to portray Nigeria positively to attract investment in the oil and gas sector.
Mr. Abdulmalik Halilu, Director of Monitoring and Evaluation, provided an update on the Nigerian Content Intervention Fund (NCI Fund), reporting over 90% performance based on access and repayment by qualified companies. He indicated that a review of the underperforming Community Contractors Fund is underway, with announcements about potential changes and new partnerships expected soon.
Abayomi Bamidele, Director of Projects Certification and Authorization, highlighted the increase in project approvals since the implementation of the Presidential Directive on Local Content, while also supporting companies seeking to accelerate gas investments through tax incentives and exemptions.
Mr. Naboth Onyesoh praised the media for their ongoing support, which has enhanced the visibility and public awareness of the NCDMB’s functions and achievements.
