NCDMB uncovers huge capacity gap as only 18 firms qualify to make oil, gas equipment

The Nigerian Content Development and Monitoring Board (NCDMB) has identified a major capacity gap in Nigeria’s drive to manufacture critical oil and gas equipment locally, with only 18 of about 60 indigenous companies assessed meeting the required criteria.

The finding has renewed efforts by the Board and industry stakeholders to develop local manufacturing capacity and reduce dependence on imported equipment used in oil and gas operations.

The Assistant Manager, Institutional Strengthening, Capacity Building Directorate of the NCDMB, Mr. Nander Salmwang, disclosed the assessment at a stakeholders’ meeting in Port Harcourt, Rivers State, where industry players discussed strategies for implementing recommendations on domestic production of critical oil and gas components.

The initiative targets equipment and components such as pumps, valves, flanges, gaskets, bolts and nuts, metering solutions and instrument fittings, which are essential to maintaining production and account for a significant share of oil and gas operating and capital expenditure.

The NCDMB Executive Secretary, Mr Felix Omatsola Ogbe, who was represented by the General Manager, Institutional Development, Capacity Building Directorate, Mr. Olugbenga Sheba, said expanding local manufacturing would strengthen indigenous businesses, improve technical capabilities and retain more value within Nigeria’s oil and gas industry.

He said the initiative forms part of the Board’s 10-year strategic roadmap, which targets 70 per cent Nigerian content by 2027.

According to him, implementing the recommendations of the industry-wide study would address skills shortages, technological deficiencies and limitations in domestic manufacturing capacity.

The Board identified infrastructure development, structured capacity building, access to finance, strategic partnerships and stronger monitoring and enforcement as critical to closing the gaps.

Sheba urged indigenous manufacturers, oil and gas operators, service companies, financial institutions and other stakeholders to work together to ensure that the initiative delivers sustainable results.

He also cited the Nigerian Oil and Gas Industry Content Development Act 2010, which provides for first consideration for Nigerian goods and services, as the legal basis for expanding local participation in the industry’s supply chain.