By Obiabin Onukwugha
The Nigerian Content Development and Monitoring Board (NCDMB), has clarified that the three Executive Orders issued by President Bola Tinubu on the Oil and Gas Industry in March 2024 did not erode the relevance of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act on the operations of the oil and gas industry.
NCDMB Director of Capacity Building, Engr. Abayomi Bamidele, made the clarification during the Local Content Masterclass and panel discussion, at the ongoing African Energy Week, in Cape Town, South Africa on Monday.
The three Executive Orders included; the Presidential Directive on Local Content Compliance, Presidential Directive on Reduction of Petroleum Sector Contracting Cost and Timelines and Presidential Directive on Oil and Gas Companies (Tax Incentives, Exemption, Remission, etc.
Giving insight into the Presidential Directives, Bamidele observed that some oil and gas stakeholders grossly misinterpreted the Presidential Directives to mean that the NOGICD Act had been relegated or sidestepped and they no longer need to comply with the provisions of the law.
“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
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 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 said.
On Board’s strategy for capacity development for new oil and gas projects, the director also revealed plans to conduct trainings in skill areas that are in a high demand in the sector. He emphasised the need to always streamline capacity building initiatives with requirements and changing dynamics in the industry.
“The Board is also committed to developing critical infrastructure such as the Brass Island Shipyard with support of the 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 said.
Bamidele advised that 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.
A statement by the NCDMB on Tuesday revealed that discussions at the panel highlighted Nigeria’s local content’s milestones and processes, provided local lessons for other African oil and gas producing countries, clarified misconceptions, as well as positioned Nigeria’s oil and gas industry for investment.
The panellists comprised the Director Capacity Building, Engr. Abayomi Bamidele, General Manager Monitoring and Evaluation, Mr. Silas Omomehin Ajimijaye, and General Manager, Nigerian Content Development Fund (NCDF), Ms. Fateemah Mohammed, and the session was moderated by the General Manager Corporate Communications, NCDMB, Dr. Obinna Ezeobi.
