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From Adanna Nnamani, Abuja
The Nigerian Content Development and Monitoring Board (NCDMB) has disclosed that local content participation in Nigeria’s oil and gas industry has risen to 61 per cent, as the board intensifies efforts to achieve its 70 per cent target by 2027.
The board said the progress reflects sustained reforms, stronger enforcement of local content regulations and increased capacity development across the industry.
Speaking at a media capacity-building workshop in Abuja, the Director of Corporate Services, Abdulmalik Halilu, explained that Nigeria’s local content drive was conceived to shift the oil and gas sector from revenue-focused operations to value creation, job generation and industrial growth.
He said studies carried out in the early 2000s revealed that the country was exporting jobs and services by prioritising rapid oil production over domestic capacity building, a trend that led to the enactment of the Nigerian Oil and Gas Industry Content Development Act in 2010.
According to Halilu, the local content policy requires that goods and services that can be produced in Nigeria must be delivered locally, without compromising global standards, competitiveness or project timelines.
He noted that NCDMB currently enforces over 300 local content targets while simultaneously supporting capacity development, stressing that enforcement and development remain central to the success of the policy.
Major achievements recorded include the engagement of over 1,400 vendors on the NLNG Train 7 project, the localisation of pressure vessel fabrication, and the supply of internationally certified safety boots, pumps and cables by Nigerian manufacturers.
The Director added that several of the manufacturing capacities developed for the oil and gas sector now serve other industries, including power, construction and heavy engineering.
On financing, he disclosed that the Nigerian Content Development Fund, sourced from one per cent deductions on upstream contracts, has been deployed through intervention programmes offering single-digit interest loans of up to $10 million to indigenous companies via the Bank of Industry.
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Halilu said the funding interventions have recorded a non-performing loan ratio of below five per cent and helped preserve thousands of jobs during the COVID-19 industry shutdown.
He also highlighted the Board’s data-driven regulatory approach, supported by digital platforms such as the Joint Qualification System and strict monitoring and evaluation frameworks, noting that no NCDMB project has been abandoned since 2010.
Beyond Nigeria, the Director said the NCDMB is working with African partners to promote local content development through platforms such as the African Petroleum Producers’ Organisation, the Africa Energy Bank and the Brazzaville Accord.
He urged the media to continue supporting public awareness and advocacy for local content policy, describing it as critical to Nigeria’s long-term economic development.
According to him, “Local content is not a sprint; it is a marathon. As of today, we are at about 61 per cent, and our target remains 70 per cent by 2027.
“The focus in the past was largely on revenue generation, with little emphasis on country value addition. Oil and gas must be used as a tool for employment, industrialisation and reduction of capital flight.
“Local content means that what can be produced in Nigeria must be produced in Nigeria, without compromising standards or competitiveness.
“One of our core responsibilities is capacity building, but enforcement and development must go hand in hand. These capacities are not just for oil and gas; they cascade into power, construction and other sectors.
“Local content is not corporate social responsibility; it is a business imperative for Nigeria’s economic growth.”
