NCDMB: Presidential Directives on Nigerian Content Have Shortened Contracting Cycle, Eliminated Middlemen
The Nigerian Content Development and Monitoring Board (NCDMB) announced on Monday that it has successfully removed middlemen from the oil and gas industry’s value chain and shortened the contracting cycle to just six months. This development follows the implementation of three Presidential Directives on Local Content operations issued by President Bola Tinubu in March 2024.
Speaking at a media breakfast in Lagos, NCDMB’s Executive Secretary, Engr. Felix Omatsola Ogbe, confirmed that the Board has fully complied with the 2024 Presidential Directive on Local Content Compliance Requirements (EO 41). This directive ensures that only local service companies with proven capacities are allowed to participate in oil and gas tenders. Additionally, NCDMB has reduced its touch points and streamlined project approval processes in line with the Presidential Directive on Reduction of Petroleum Sector Contracting Costs and Timelines (EO 42).
Ogbe emphasized that these directives are aimed at attracting new investments, accelerating oil and gas project development, and improving the Nigerian economy. He also revealed plans for a new initiative titled “Back to the Creeks,” which aims to expand the impact of local content to oil-producing communities and hinterlands.
Addressing questions from journalists, Ogbe refuted claims that local content implementation increases the cost of oil production. Instead, he attributed rising costs to operational downtimes caused by community issues and technical challenges, as well as the cost of providing security and dealing with “briefcase contractors.”
To further enhance the oil and gas industry, Ogbe stated that NCDMB is working to create a conducive environment for international oil companies to make final investment decisions on new projects. He also reiterated the Board’s commitment to supporting indigenous oil and gas service companies.
Ogbe also promised to revive the 2022 insurance services guidelines signed with the National Insurance Commission (NIACOM), which mandates the Nigerian oil and gas industry to utilize local insurance services.
During the meeting, the Executive Secretary highlighted the critical role of public communication and media engagement in ensuring the success of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act and the Nigerian Content 10-year strategic roadmap.
NCDMB’s General Manager of Corporate Communications and Zonal Coordination, Mr. Esueme Dan Kikile, explained that the breakfast meeting was organized to formally introduce the Executive Secretary to media stakeholders. Senior NCDMB officials, including Directors Ama Ikuru, Abdulmalik Halilu, Abayomi Bamidele, and Naboth Onyesoh, also attended the meeting.
Key updates included the progress of the Nigerian Content Intervention Fund (NCI Fund), which was rated at over 90% performance in terms of access and repayment by qualified companies, as well as plans to remodel the underperforming Community Contractors Fund.
Source: NCDMB
