From Kenechukwu Obiajuru, Yenagoa
Officials of the Nigerian Content Development and Monitoring Board (NCDMB) and the Petroleum Technology Association of Nigeria (PETAN) shared insights on Nigeria’s local content implementation and lessons for other African nations on Wednesday, Day 2 of the Namibia Oil and Gas Conference, at Windhoek, Namibia.
The Director, Corporate Services at the NCDMB, Dr. Abdulmalik Halilu made a presentation on the Local Content Success Stories in Nigeria and Lessons learnt. Likewise, the General Manager Corporate Communications, Dr. Obinna Ezeobi, and PETAN Chairman and member of NCDMB Governing Council, Mr. Wole Ogunsanya participated in a panel session, titled “Local content development: How Namibians can benefit from the oil and gas industry.”
In his presentation, Halilu listed Nigeria’s local content implementation pillars to include regulatory framework, access to market, gap analysis, capacity building, incentives and funding, and research and development.
He highlighted the key roles played by Petroleum Technology Association of Nigeria (PETAN) who have over 101 companies that provide technology in diverse areas of the industry, employ over 30,000 Nigerians and have cumulative employment impact over 100,000.He indicated that the implementation of the Nigerian Content 10-year strategic roadmap had grown Nigeria’s local content performance to 56 percent as at 2025.
He identified some other initiatives of the NCDMB, such as capacity development, which is geared to build in-country value addition, funding and incentives as well as creating access to markets for service companies and manufacturing companies.
Speaking on the panel session, Dr. Ezeobi made salient recommendations that could guide Namibia and other African nations in their formulation and implementation of effective local content policies.
Specifically, he advised the adoption of NCDMB’s Project 100 initiative, whereby strategic financial and non-financial support are provided to select local service companies, to upscale their capacities, including providing them access to market.
He also recommended government’s partnerships with competent private sector players to deliver strategic energy projects that meet needs of the nation’s economy.
Another suggestion was the facilitation of collaborations between local companies and original equipment manufacturers (OEMs), and government’s sponsorship of local service firms to international oil and gas conferences, to expose them to partnership opportunities and new technologies.
The General Manager equally harped on the need for oil producing nations to introduce dedicated fund schemes which their local service companies and manufacturers can access at single digit interest rate, to grow their capacities and capabilities.
Responding to a question on challenges Nigeria faced at the onset of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, and how they overcame them, Dr. Ezeobi stated that Nigeria faced pushbacks from some international companies as well as scepticism over government’s commitment to implement the law.
Other problems bordered on doubts regarding the technical capacity of local service companies, as well as the misconception by some indigenous operating companies and midstream and downstream players that the NOGICD Act did not cover their operations.
He expressed delight that those challenges had been largely overcome, through extensive engagements and communication with industry stakeholders, and by Nigerian service companies upscaling their capacities significantly and delivering top quality work on schedule consistently.
Dr. Ezeobi encouraged African oil producing nations to demonstrate strong political will when implementing local content policies and to communicate the policies effectively, ensuring that relevant stakeholders have good understanding of the policy, as well as their roles in the implementation and compliance processes.In his contribution, PETAN Chairman, Mr. Wole Ogunsanya, advised the framers of the Namibian local content policy to decouple non-complex work packages from major projects.
He tasked them to borrow a leaf from the NOGICD Act in producing a detailed list of activities carried out in oil and gas industry operations.
This approach would allow upcoming local companies to compete for the smaller packages, win and deliver on them successfully, providing a pathway for such firms to grow capacity sustainably.
As part of NCDMB and PETAN collaboration at the Namibia Oil and Gas Conference, the two organisations set up a joint exhibition booth and received leaders of the government, and oil and gas stakeholders. Most of the visitors to the booth wanted to understand Nigeria’s local content law, while others sought guidance or collaboration for different technical services they hope to deploy in their fast developing oil and gas industry.
