The Nigerian Content Development and Monitoring Board (NCDMB) has disclosed that 132 indigenous companies have accessed N51.785 billion and $359.653 million from various local content intervention funds. The initiative is aimed at bolstering indigenous participation and strengthening the capacity of Nigerian firms within the nation’s oil and gas sector.
The funding, released under the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, comprises several dedicated windows, including the $350 million Nigerian Content Intervention Fund, the $50 million Working Capital Fund (supported by NEXIM Bank), and the Women in Oil and Gas Fund.
Strategic Allocation of Funds
Data released by the NCDMB on Monday provides a detailed breakdown of how these funds were distributed to enhance domestic capacity:
Asset Acquisition: 38 companies secured N22.144 billion and $205.666 million to purchase critical industry equipment.
Loan Refinancing: 25 companies benefited from N15.98 billion and $115.998 million.
Manufacturing: Three firms received N7.561 billion to support local production.
Contract Financing: 10 firms obtained N2.232 billion and $24.728 million to execute specific industry projects.
Driving Local Participation and Industrialization
Speaking at a media stakeholders workshop in Abuja, the NCDMB Director of Corporate Services, Abdulmalik Halilu, highlighted that these strategic investments have driven local participation in the sector from 44% three years ago to 61% this year.
“Local content is about domestication based on global best practices, not mere indigenisation or promotion of inferior goods,” Halilu stated. He emphasized that the NCDMB’s dual mandate of capacity building and enforcement ensures that Nigerians are not just participants, but owners of critical assets.
As a prime example of the policy’s impact, Halilu noted that the NLNG Train-7 project alone engaged approximately 8,000 Nigerians alongside 500 expatriates. The project also utilized 1,400 local vendors for the fabrication of pressure vessels, certified pumps, and cables—capacities that are now being leveraged by the power and construction sectors.
Historical Context and Continental Vision
The push for local content began in 2001 and was formally entrenched by the 2010 Act under President Goodluck Jonathan. This shifted the industry’s focus from mere revenue generation to in-country value addition and job creation.
Looking forward, the NCDMB is championing the expansion of this philosophy across the continent. “Africa combined has about 125 billion barrels of crude oil and over 800 trillion cubic feet of gas,” Halilu remarked, noting that the Board is working through the African Petroleum Producers’ Organisation (APPO) to promote the Brazzaville Accord and the establishment of the Africa Energy Bank.
Media Engagement
The NCDMB General Manager of Corporate Communications, Obinna Ezeobi, reaffirmed the Board’s commitment to transparency and media support, stating that the Board will continue to equip journalists with the technical knowledge required to report effectively on the complexities of the oil and gas industry.