The Nigerian Content Development and Monitoring Board (NCDMB) has said that the three Executive Orders issued by President Bola Tinubu on the oil and gas Industry in March 2024 have not eroded the relevance of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.
Speaking during a panel session at the ongoing African Energy Week in Cape Town, South Africa, on Monday, the Director of Capacity Building, Mr Abayomi Bamidele, said some oil and gas stakeholders grossly misinterpreted the presidential directives to mean that the NOGICD Act had been relegated or sidestepped, and no longer needed to comply with the provisions of the law.
The three Executive Orders are the Presidential Directive on Local Content Compliance, the Presidential Directive on Reduction of Petroleum Sector Contracting Cost and Timelines and the Presidential Directive on Oil and Gas Companies (Tax Incentives, Exemption, Remission, among others).
“The Special Adviser to the President on Energy had to clarify that the Presidential Directives did not set aside local content. They only mandated that existing capacities must be patronized and middlemen must be excluded from the contracting process,” he said.
Mr Bamidele confirmed that NCDMB had streamlined its contracting strategies to align with the Presidential Directives, collapsed its touchpoints in the contract approval process from 9 to 5, thereby contributing to the shortening the industry’s contracting cycle, reduction of the cost of projects and catalysing new oil and gas projects from operating oil and gas companies.
He also announced that qualified international service companies can now be awarded the Nigerian Content Equipment Certificates (NCEC), to facilitate their direct participation in deepwater operations in the Nigerian oil and gas industry, as provided in the NOGICD Act. This policy will attract investments into the sector, and is consistent with the Presidential Directives, he explained.
On Board’s strategy for capacity development for new oil and gas projects, he said plans are afoot to conduct trainings in skill areas that are in a high demand in the sector.
He underlined the need to always streamline capacity building initiatives with requirements and changing dynamics in the industry.
The NCDMB official noted that the board is committed to developing critical infrastructure such as the Brass Island Shipyard with support of the Nigeria Liquified Natural Gas (NLNG), as well as completing and operationalizing the Nigerian Oil and Gas Parks at Odukpani, Cross River State and Emeyal-1 in Bayelsa State.
He also charged other African producers on local content and capacity building strategies must be country-specific, and policy makers must understand the mindset and skillsets of their nationals.
He further advised that local content policies and capacity building models must be relevant and applicable to the host country’s technological, educational and manpower capacities.