The Nigerian Content Development and Monitoring Board (NCDMB) has disclosed that only 18 out of 60 indigenous companies assessed have met the required criteria for manufacturing oil and gas equipment in Nigeria.
The disclosure was made during a stakeholders’ meeting held in Port Harcourt, Rivers State, to discuss strategies for implementing recommendations from an industry-wide study on the local manufacturing of critical oil and gas components.
The initiative, undertaken in collaboration with stakeholders in the oil and gas industry, is aimed at strengthening local manufacturing capacity, empowering indigenous businesses and reducing the country’s dependence on imported equipment and components.
The study followed an assessment commissioned by the NCDMB on July 7, 2022, to develop a strategy for the local production of essential components, including pumps, valves, flanges, gaskets, bolts and nuts, metering solutions and instrument fittings. The report was submitted on July 12, 2023.
The study identified local manufacturing of these components as crucial to advancing Nigerian content, given their importance in maintaining oil and gas production operations and their significant contribution to operational and capital expenditure.
Speaking at the stakeholders’ meeting, the Executive Secretary of the NCDMB, Engr. Felix Omatsola Ogbe, reaffirmed the board’s commitment to expanding local manufacturing capacity, promoting industrialisation and retaining more value within Nigeria’s oil and gas industry.
Ogbe, who was represented by the General Manager of Institutional Development in the board’s Capacity Building Directorate, Mr. Olugbenga Sheba, said developing the capacity to manufacture critical oil and gas components locally would strengthen indigenous enterprises, improve technical expertise and enhance the participation of Nigerian companies in major industry supply chains.
He cited the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, 2010, which provides for first consideration to Nigerian goods and services, as the legal framework supporting indigenous participation and local production.
According to him, the board would ensure that the implementation of the study’s recommendations aligns with the provisions of the Act while creating more opportunities for qualified Nigerian companies to thrive.
“Today’s rollout is not an isolated initiative; it is an integral pillar of our NCDMB 10-Year Strategic Roadmap, which targets achieving 70% Nigerian Content by 2027,” he stated.
Ogbe explained that implementing the study’s recommendations would advance the technical capability development component of the board’s 10-year strategic roadmap by addressing skills gaps, technological deficiencies and limitations in local manufacturing capacity.
He identified infrastructure development, structured capacity-building programmes, improved access to finance, strategic partnerships, and effective monitoring and enforcement as key areas requiring attention.
The NCDMB executive secretary also urged stakeholders to demonstrate commitment to the initiative, noting that collaboration among the board, indigenous manufacturers, oil and gas operators, service companies, financial institutions and other industry players would be essential to achieving sustainable results.
In his presentation, the Assistant Manager of Institutional Strengthening in the Capacity Building Directorate, Mr. Nander Salmwang, disclosed that approximately 60 indigenous companies were identified during the assessment, but only 18 satisfied the required criteria.
Similarly, the Manager of the Nigerian Content Development Fund (NCDF), Mr. Emmanuel Yusuf, outlined funding opportunities available through the fund to support indigenous companies and community contractors seeking to strengthen their operations and participate more actively in the industry’s supply chain.
The meeting also highlighted the Nigerian Oil and Gas Park Scheme (NOGaPS) as a key initiative for developing the infrastructure and technical capabilities required to support local manufacturing.
Other presentations and discussions focused on existing opportunities, implementation challenges and practical strategies for increasing indigenous participation in the production of critical oil and gas equipment and components.
