NCDMB and Industry Players Plan for Local Production of Key Oil and Gas Equipment

The Nigerian Content Development and Monitoring Board (NCDMB), along with oil and gas players, has started working on recommendations from a study about making key equipment in Nigeria.

On Monday, a meeting took place in Port Harcourt, Rivers State. The aim was to come up with practical ways to carry out the report's suggestions. These suggestions focus on boosting local manufacturing, helping local businesses, and cutting down on imports.

On 7 July 2022, the NCDMB put together a team from different parts of the oil industry. Their job was to figure out how to produce pumps, valves, flanges, gaskets, bolts and nuts, metering solutions, and instrument fittings in Nigeria. The team finished their report on 12 July 2023. This study started because it was clear that making these components locally is vital for Nigerian content. This is important for keeping oil and gas production running smoothly and managing costs better.

Felix Omatsola Ogbe, the Executive Secretary of the NCDMB, was represented by Mr Olugbenga Sheba at the meeting. He is the General Manager of the Institutional Development and Capacity Building Directorate. He talked about the Board’s goal to build local capacity, promote industrial development, and keep more value in Nigeria’s oil and gas sector.

Mr Sheba said that producing important industry parts in Nigeria would help local businesses grow, boost their skills, and allow Nigerian firms to take part more actively in big oil and gas projects.

He mentioned the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, 2010. This law prioritizes Nigerian goods and services, which helps support local businesses and production.

He said the Board is dedicated to following the study's recommendations, guided by the Act. This will create more opportunities for qualified Nigerian firms.

“Today’s rollout is not an isolated initiative; it is an integral pillar of our NCDMB 10-Year Strategic Roadmap, which targets achieving 70% Nigerian Content by 2027,” he pointed out.

He explained that carrying out the study’s recommendations would help develop technical skills in line with the Board’s 10-Year Strategic Roadmap. It aims to tackle skill gaps, technology issues, and limits in local manufacturing.

He also talked about key focus areas for the implementation. These include expanding infrastructure, structured training programs, better access to funding, and effective monitoring and enforcement.

He called on stakeholders to show strong commitment to this process. He stressed that teamwork between the Board, local manufacturers, operators, service providers, banks, and other players is crucial for lasting success.

Mr Nander Salmwang, Assistant Manager of the Capacity Building Directorate, shared that about 60 local companies were assessed, but only 18 met the needed standards. He also pointed out the challenges in growing local manufacturing capacity and the need for focused efforts to fix these problems.

Mr Emmanuel Yusuf, who manages the Nigerian Content Development Fund (NCDF), spoke about funding options available through the NCDF. He explained how important financial support is for local firms and community contractors wanting to strengthen their businesses and engage more in the industry’s supply chain.

The meeting also discussed how the Nigerian Oil and Gas Park Scheme (NOGaPS) supports local manufacturing infrastructure and capabilities. Other discussions allowed stakeholders to explore current opportunities, identify challenges, and find practical ways to boost local involvement in making key oil and gas equipment.