- The Nigerian Oil and Gas Industry Content Development NOGICD Act ensures local content thrives in Nigeria’s oil and gas sector.
- Streamlined strategies under the NOGICD Act attract investment and enhance capacity-building initiatives.
The Nigerian Content Development and Monitoring Board (NCDMB) has confirmed that the three executive orders issued by President Bola Ahmed Tinubu in March 2024 did not reduce the authority of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act. This clarification came during the Local Content Masterclass and panel discussion at African Energy Week in Cape Town, South Africa.
During the session, panellists showcased Nigeria’s local content milestones. They also shared lessons for other African oil and gas-producing countries, clarified common misconceptions, and highlighted Nigeria as an attractive investment destination.
Engr. Abayomi Bamidele, Director of Capacity Building, explained that some stakeholders misinterpreted the presidential directives. They wrongly assumed the NOGICD Act no longer applied. He clarified that the directives require the use of existing capacities and the removal of unnecessary middlemen from contracting processes.
The three executive orders include the Presidential Directive on Local Content Compliance, the Presidential Directive on Reducing Petroleum Sector Contracting Costs and Timelines, and the Presidential Directive on Oil and Gas Companies’ Tax Incentives, Exemptions, and Remissions. Consequently, NCDMB streamlined its contracting strategy. The Board reduced touchpoints from nine to five, which accelerated project approvals, lowered costs, and encouraged new oil and gas investments.
Bamidele added that qualified international service companies can now receive Nigerian Content Equipment Certificates (NCEC). This allows them to participate directly in deepwater operations under the NOGICD Act. This measure aligns with the presidential directives and attracts foreign investments.
Regarding capacity development, NCDMB plans to train professionals in high-demand skills to meet industry needs. Moreover, the Board continues to invest in critical infrastructure, such as the Brass Island Shipyard, with NLNG support, and the Nigerian Oil and Gas Parks at Odukpani, Cross River State, and Emeyal-1, Bayelsa State.
Advising other African countries, Bamidele emphasised that local content and capacity-building strategies must suit each nation. Policymakers must consider local skills, mindsets, and technological and educational capacities. Therefore, the NOGICD Act remains vital for local content growth, investment, and sustainable development across Nigeria.