The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Felix Omatsola Ogbe, on Wednesday, spoke about the gains of the 2010 Nigerian Oil and Gas Industry Content Development (NOGICD) Act, the regulatory framework driving local content policy in the country.
He gave the hint during a presentation titled “Local Content and Sustainable Inclusive Economic Growth” held at the 2024 Namibia Oil and Gas Conference held in Windhoek, Namibia.
Ogbe noted that recent discoveries of hydrocarbon deposits have increased the oil and gas reserves of the continent to approximately 126 billion barrels of oil and about 614 trillion cubic feet of gas.
He stated that the adoption of a local content policy for the oil and gas industry or other resources is one veritable means through which African countries can ensure that the utilization of resources will translate to energy security and economic development.
Such a policy also leads to industrialization of the continent, drawing on the Nigerian experience for illustration, he said.
Ogbe stressed that since the enactment of the NOGICD Act in 2010, Nigeria has recorded significant achievements, including the creation of over 30,000 direct jobs, over 15 million training man-hours and the award of over 90% of contracts to Nigerian-owned businesses.
The utilization of the expatriate management system to ensure that 80% of oil companies’ management positions are held by Nigerians was also an achievement he mentioned.
The NCDMB boss pointed out that successful indigenous operators are now responsible for producing more than 60% of Nigeria’s domestic gas requirements and over 15% of crude oil production.
Ogbe who was represented by the General Manager of Corporate Communications/Zonal Coordination, Esueme Dan Kikile, Esq. said that “As of the end of 2023, we have reached a Nigerian Content level of 54% and are committed to achieving the set target of 70% by 2027.”
He further shared NCDMB’s experience as a regulator responsible for deepening and driving local content in the Nigerian oil and gas industry.
“A successful local content policy must entail the deployment of six key parameters: regulatory framework, gap analysis, capacity building, funding and incentives, research and development, and access to market.
“A law or decree, depending on the political arrangement in a country, sets the framework and boundaries for all local content practitioners,” he said.
While saying that a structured capacity-building intervention is necessary to foster the development of in-country capacities and capabilities, Ogbe averred that gap analysis would ensure that baseline and periodic gap evaluations are undertaken to ascertain human capacity and infrastructure deficits.
These evaluations, he believes, then form the basis for developing initiatives, projects, and programs aimed at closing the identified gaps.
The NCDMB boss equally emphasized the importance of research and development, noting that it would facilitate the creation of innovative solutions to address specific challenges faced by a nation’s oil and gas industry.
He also underscored the necessity for access to markets, as developed capacities and capabilities need patronage to be sustained.
Five key components of the framework, as instituted by the NCDMB, are Analysis, Guidelines and Regulations, Implementation, Monitoring and Evaluation, and Feedback Mechanism. Faithful adherence to these elements significantly contributes to the success of local content practice in Nigeria.
The 2024 Namibia Oil and Gas Conference which is still ongoing in Windhoek, being attended by captains of industry from across the African continent.
Namibia has an estimated crude oil reserves of 11 billion barrels and gas reserves of 2.2 trillion cubic feet.
