THE Nigerian Content Development and Monitoring Board (NCDMB) announced on October 7, 2024, that presidential directives from President Bola Tinubu have successfully eliminated middlemen in the oil and gas sector.
This reform has also shortened the contracting cycle to six months.
This was made known by Engr. Felix Omatsola Ogbe, Executive Secretary of NCDMB, during a breakfast meeting with media executives in Lagos.
Ogbe confirmed that the NCDMB has fully complied with the Presidential Directive on Local Content Compliance Requirements, 2024 (EO 41), which ensures that only local service companies with proven capacity and capabilities can participate in oil and gas tenders.
He also stated that NCDMB has streamlined its processes and expedited project approvals in line with the Presidential Directive on Reducing Petroleum Sector Contracting Costs and Timelines, 2024 (EO 42).
These directives, along with the Board’s compliance, aim to attract new international and local investments, accelerate the development of oil and gas projects, and boost Nigeria’s economy.
Ogbe also revealed plans for a new initiative called “Back to the Creeks,” which will extend the benefits of local content implementation to oil-producing communities and remote areas across Nigeria.
When asked by journalists about the impact of local content on the cost of crude oil production, Ogbe dismissed claims that it increases production costs.
He explained that the main contributors to higher production costs are operational downtime and disruptions due to community issues or technical problems. Other factors include security costs and the activities of unqualified contractors.
Discussing the Board’s strategy for industry growth, Ogbe highlighted NCDMB’s efforts to create a favorable environment for international oil companies to make final investment decisions on new projects.
The Board is also developing policies to support indigenous oil and gas service companies, he said.
In response to a question on insurance, Ogbe promised to revive the 2022 insurance services guidelines signed with the National Insurance Commission (NAICOM), which require the Nigerian oil and gas industry to utilize local insurance services.
Ogbe acknowledged that the success of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act and the 10-year strategic roadmap for Nigerian Content depends largely on public communication and support from key industry stakeholders.
He expressed his appreciation to the media for promoting the Board’s activities and assured continued collaboration with them during his tenure.
The breakfast meeting also introduced the Executive Secretary to prominent media stakeholders.
Senior NCDMB management in attendance included Dr. Ama Ikuru, Director of Corporate Services and Capacity Building; Abdulmalik Halilu, Director of Monitoring and Evaluation; Engr. Abayomi Bamidele, Director of Projects Certification and Authorization; and Naboth Onyesoh, Director of Legal Services.
In his remarks, Dr. Ama Ikuru urged media stakeholders to present Nigeria positively to attract more investments in the oil and gas sector.
Halilu provided an update on the Nigerian Content Intervention Fund (NCI Fund), rating its performance at over 90%, based on the access granted to qualified companies and the repayment rate.
He also revealed that a team has been set up to review the poorly performing Community Contractors Fund under the NCI Fund, with plans for a revamp soon.
Engr. Bamidele emphasized the increased number of projects approved by the Board, thanks to the implementation of the Presidential Directive on Local Content.
He also mentioned that the Board is supporting companies looking to fast-track gas investments by leveraging the Presidential Directive on Tax Incentives, Exemptions, and Remissions for Oil and Gas Companies.
Onyesoh concluded by commending the media for their role in increasing the visibility and public awareness of the Board’s work and achievements.