With NOGOF, NCDMB Targets Addition to 56% Local Content in Oil, Gas Sector

Emmanuel Addeh in Abuja

The Nigerian Content Development and Monitoring Board (NCDMB) yesterday announced that with its upcoming biennial conference, the Nigerian Oil and Gas Opportunity Fair (NOGOF), it expects that the Nigerian content in the oil and gas sector will rise from the current 56 per cent.

Speaking during a press briefing in Abuja, the Executive Secretary, NCDMB, Felix Ogbe, noted that  the event is part of the board’s mandate to develop local capacities and capabilities in the industry as enshrined in the Nigerian Oil and Gas Industry Content Development Act 2010 (NOGICD Act).

Before the setting up of the NCDMB, the industry was said to have been marked by capital flight amounting to an estimated $380 billion, loss of 2 million jobs as a result of human capital deficits as well as less than 5 per cent in local content in the sector.

But in sharp contrast, in the post-NOGICD Act era, local content hit 56 per cent at the end of 2023, which translates into in-country retention of 56 per cent of oil and gas industry yearly spend on operations, with the target being 70 per cent by 2027.

NOGOF, the 5th edition of the event scheduled for May 21 & 22, Ogbe said, will be deployed to meet the key objectives of promoting institutional collaboration and increasing Nigerian participation in the sector.

Themed: “Driving Investment and Production Growth: Shaping a Sustainable Oil and Gas Industry through Indigenous Capacity Development,” Ogbe stressed that it highlights the critical role of the oil and gas industry in fueling industrialisation and development of Nigeria’s economy.

“This theme also aligns with President Bola Tinubu’s commitment to economic growth and self-reliance.  Through the signing of an Executive Order, the President has positioned the country as Africa’s top destination for petroleum sector investments. This was achieved by prioritising local capacity development.

“NOGOF provides opportunities for companies in the upstream, midstream and downstream sectors to showcase their upcoming projects.  The aim is  to achieve our national aspirations of increasing gas and crude oil production,  boost revenue,  and meet domestic crude oil and gas supply obligations.

“This enables service companies, manufacturers, oil and gas trainers, and job seekers to invest in facilities and capabilities that will domicile most of the activities in the country.

“In the 2023 edition of NOGOF, over 100 opportunities were presented by companies in the sector.  We had over 1,500 attendees,  including VIPs.  Some of the projects showcased such as UBETA and Bonga North are already being executed, while others are in the pipeline for Final Investment Decision (FID),” the executive secretary added.

Ogbe stated that the NCDMB was expecting a large attendance and more opportunities at this year’s edition,  because of the impact of the three Presidential Directives on the Oil and Gas Industry, which has unlocked new investments.

Also speaking, Director, Monitoring and Evaluation at the NCDMB, Halilu Abdulmalik, underscored the need for partnerships to enhance the growth of local content in the country, especially with internal service providers.

He explained that it was an opportunity for industry players to showcase their capacities, network, and then for people to get to know the capacities that  exist in the oil and gas industry.

Others who spoke at the event included:  The Chairman, Petroleum Technology Association of Nigeria (PETAN), Wole Ogunsanya and Managing Director, Jake Riley and NOGOF Project Consultant.