NCDMB Clarifies Presidential Directives, Reaffirms Strength of NOGICD Act
By NaijaEnquirer Staff
The Nigerian Content Development and Monitoring Board (NCDMB) has clarified that the three Executive Orders issued by President Bola Ahmed Tinubu in March 2024 do not erode the Nigerian Oil and Gas Industry Content Development (NOGICD) Act. Instead, they complement it by streamlining processes and enhancing local participation in the oil and gas sector.
Panel Insights at African Energy Week
The clarification came during a Local Content Masterclass and panel discussion at the African Energy Week in Cape Town, South Africa. NCDMB officials highlighted Nigeria’s local content milestones, lessons for other African producers, and strategies to position Nigeria for sustained investment.
Panelists included Engr. Abayomi Bamidele, Director Capacity Building; Mr. Silas Omomehin Ajimijaye, General Manager Monitoring and Evaluation; and Ms. Fateemah Mohammed, General Manager of the Nigerian Content Development Fund (NCDF). The session was moderated by Dr. Obinna Ezeobi, General Manager Corporate Communications.
Misinterpretations Addressed
Engr. Bamidele explained that some stakeholders misinterpreted the Executive Orders as replacing the NOGICD Act. “The Presidential Directives did not set aside local content. They only mandated that existing capacities must be patronized and middlemen excluded from contracting processes,” he said. The three directives cover Local Content Compliance, Reduction of Contracting Cost and Timelines, and Tax Incentives for Oil and Gas Companies.
Contracting Reforms and Investments
Bamidele revealed that NCDMB streamlined its contract approval process from nine to five stages, shortening timelines and reducing costs. He also announced that qualified international service firms can now obtain Nigerian Content Equipment Certificates (NCEC) to participate in deepwater operations, a move expected to attract new investments. He emphasized that capacity-building programs would continue to align with emerging industry needs.
Compliance and Monitoring
Mr. Ajimijaye stressed that asset divestments by international oil companies had not weakened compliance, as NCDMB sustained established protocols with new indigenous operators. He highlighted the Board’s robust monitoring systems and its R&D roadmap, which includes six Centers of Excellence in Nigerian universities and support for 15 ongoing research projects.
Financing Local Content
Ms. Fateemah Mohammed outlined the impact of the Nigerian Content Intervention Fund (NCI Fund), which offers single-digit loans to Nigerian service firms. She highlighted the N50 billion Community Contractors Fund—providing up to N100 million for local contractors—and the $20 million Women in Oil and Gas Fund, managed by NEXIM Bank, to strengthen female participation in the industry. She encouraged other African nations to adopt similar financing models to expand local content capacity.
Commitment to Infrastructure
NCDMB also reaffirmed its commitment to critical projects such as the Brass Island Shipyard with NLNG support, and the completion of the Nigerian Oil and Gas Parks in Cross River and Bayelsa States. These initiatives are expected to boost capacity development, create jobs, and drive local economic growth.
