By Sandra Chukwunyere
The Nigerian Content Development and Monitoring Board (NCDMB) and oil and gas industry stakeholders have begun developing strategies to implement recommendations aimed at boosting the domestic manufacturing of critical oil and gas equipment and components in Nigeria.
The stakeholders met on Monday in Port Harcourt, Rivers State, to define practical approaches to implementing the recommendations, with a focus on expanding local manufacturing capacity, empowering indigenous enterprises and reducing dependence on imported components.
According to a statement signed by Obinna Ezeobi, PhD, General Manager, Corporate Communications Division, NCDMB, the initiative builds on an industry-wide study commissioned by the Board to develop a strategy for the in-country manufacturing of pumps, valves, flanges, gaskets, bolts and nuts, metering solutions, and instrument fittings.
The NCDMB commissioned a team of oil industry stakeholders to conduct the study on July 7, 2022, and the team submitted its report on July 12, 2023.
The Board initiated the study after identifying local manufacturing of these components as essential to advancing Nigerian content, given their importance to sustaining oil and gas production uptime and their significant share of operating and capital expenditures.
Representing the Executive Secretary of NCDMB, Engr. Felix Omatsola Ogbe, the General Manager, Institutional Development, Capacity Building Directorate, Mr. Olugbenga Sheba, reaffirmed the Board’s commitment to deepening local capacity, promoting industrialisation and retaining more value within Nigeria’s oil and gas industry.
Sheba said domestic manufacturing of critical components would strengthen indigenous enterprises, improve technical competence and enable Nigerian companies to participate more effectively in the supply chains of major oil and gas projects.
He cited the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, 2010, which provides for first consideration for Nigerian goods and services, as the statutory basis for promoting indigenous participation and local production.
“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 stated.
Sheba explained that implementing the study’s recommendations would advance the technical capability development pillar of the Board’s strategic roadmap by addressing skills gaps, technological deficiencies and limitations in local manufacturing capacity.
He identified infrastructure expansion, structured capacity-building initiatives, improved access to capital, strategic partnerships, and effective monitoring, compliance and enforcement as key priorities for implementation.
He urged the Board, indigenous manufacturers, operators, service companies, financial institutions and other industry players to collaborate closely, stressing that their collective commitment would be critical to achieving sustainable results.
In his presentation, the Assistant Manager, Institutional Strengthening, Capacity Building Directorate, Mr. Nander Salmwang, disclosed that the assessment identified approximately 60 indigenous companies, but only 18 met the required criteria.
Salmwang also highlighted challenges affecting the development and expansion of domestic manufacturing capacity, underscoring the need for targeted interventions to address existing gaps.
Similarly, the Manager, Nigerian Content Development Fund (NCDF), Mr. Emmanuel Yusuf, presented funding opportunities available through the fund. He explained the importance of financial support to indigenous companies and community contractors seeking to strengthen their operations and participate more actively in the industry’s supply chain.
The meeting also examined the Nigerian Oil and Gas Park Scheme (NOGaPS) and its role in supporting the development of local manufacturing infrastructure and capabilities.
Further presentations and discussions enabled stakeholders to examine existing opportunities, identify implementation challenges and explore practical approaches to increasing indigenous participation in the manufacturing of critical oil and gas equipment and components.
The initiative aligns with the NCDMB’s 10-Year Strategic Roadmap, which targets 70 per cent Nigerian content by 2027, through stronger technical capabilities and increased local participation in the oil and gas industry.
