The Nigerian Content Development and Monitoring Board (NCDMB), alongside key oil and gas industry stakeholders, is working to implement recommendations from an industry-wide study aimed at strengthening local production of critical oil and gas equipment and components. The initiative was discussed at a stakeholders’ meeting held on Monday in Port Harcourt, Rivers State, where participants explored practical measures to boost domestic manufacturing, support indigenous businesses and reduce dependence on imported equipment.
The meeting focused on developing actionable strategies to implement the study’s recommendations, with the broader objective of expanding local manufacturing capacity, empowering indigenous enterprises and retaining more value within Nigeria’s oil and gas industry.
On July 7, 2022, the NCDMB commissioned a team comprising representatives from across the oil and gas industry to develop a strategy for the domestic manufacturing of pumps, valves, flanges, gaskets, bolts and nuts, metering solutions and instrument fittings. The team submitted its report on July 12, 2023.
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The study was initiated after local production of these components was identified as a critical factor in advancing Nigerian content, given their importance to maintaining uninterrupted oil and gas operations and their significant contribution to both operating and capital expenditure.
Representing the NCDMB Executive Secretary, Engr. Felix Omatsola Ogbe, at the meeting, the General Manager of Institutional Development in the Capacity Building Directorate, Mr. Olugbenga Sheba, reaffirmed the Board’s commitment to strengthening local capabilities, promoting industrialisation and maximising value retention in the Nigerian oil and gas sector.
He noted that developing domestic capacity to manufacture essential industry components would strengthen indigenous businesses, enhance technical expertise and enable Nigerian companies to participate more effectively in the supply chains of major oil and gas projects.
Sheba also referenced the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, 2010, which provides for the first consideration of Nigerian goods and services, highlighting its role in supporting local production and indigenous participation in the industry.
According to him, the Board remains committed to ensuring that the implementation of the study’s recommendations aligns with the provisions of the Act while creating more opportunities for qualified Nigerian companies to grow and compete.
“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.
He explained that implementing the report’s recommendations would directly support the technical capability development pillar of the Board’s 10-Year Strategic Roadmap by addressing identified skills gaps, technological shortcomings and limitations in domestic manufacturing capacity.
He further identified key priorities for the implementation process, including expanding infrastructure, introducing structured capacity-building programmes, improving access to finance and strategic partnerships, and strengthening monitoring, compliance and enforcement mechanisms.
Sheba urged industry stakeholders to demonstrate strong commitment to the initiative, noting that effective collaboration among the NCDMB, 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 met the required criteria.
He highlighted several challenges hindering the development and expansion of domestic manufacturing capacity, stressing the need for targeted interventions to address existing gaps and improve the competitiveness of local manufacturers.
Similarly, the Manager of the Nigerian Content Development Fund (NCDF), Mr. Emmanuel Yusuf, outlined funding opportunities available through the fund, explaining how financial support could help indigenous companies and community contractors strengthen their operations and participate more actively in the oil and gas industry’s supply chain.
The meeting also highlighted the Nigerian Oil and Gas Park Scheme (NOGaPS) as an important initiative for developing the infrastructure and technical capabilities required to support local manufacturing.
Further presentations and discussions provided an opportunity for stakeholders to assess existing opportunities, identify implementation challenges and explore practical strategies for increasing indigenous participation in the production of critical oil and gas equipment and components.
The initiative is expected to contribute to the development of a stronger domestic manufacturing base, improve the capacity of Nigerian companies and advance the country’s broader local content objectives in the oil and gas industry.
