NCDMB targets local production of critical oil, gas components

By Reporter

The Nigerian Content Development and Monitoring Board (NCDMB) and oil and gas industry stakeholders have begun working out how to implement recommendations from a study on manufacturing key industry components in Nigeria.

At a meeting in Port Harcourt, Rivers State, participants discussed practical steps to expand local manufacturing capacity, strengthen indigenous businesses and reduce dependence on imported components.

The NCDMB commissioned an industry team on July 7, 2022, to develop a strategy for local production of pumps, valves, flanges, gaskets, bolts and nuts, metering solutions, and instrument fittings. The team submitted its report on July 12, 2023.

The study followed the identification of these components as essential to advancing Nigerian content. They play a significant role in maintaining oil and gas production uptime and account for a substantial share of operating and capital expenditure.

Representing NCDMB Executive Secretary Engr. Felix Omatsola Ogbe, Olugbenga Sheba, General Manager of Institutional Development in the Capacity Building Directorate, said the Board was working to deepen local capacity, promote industrialisation and retain more value in Nigeria’s oil and gas industry.

He said building the ability to manufacture critical components locally would strengthen indigenous businesses, improve technical expertise and help Nigerian companies participate more fully in major oil and gas project supply chains.

Sheba cited the Nigerian Oil and Gas Industry Content Development Act, 2010, which provides for first consideration to be given to Nigerian goods and services. He said the Board would ensure that implementation of the study’s recommendations followed the Act and expanded opportunities for qualified Nigerian companies.

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

Sheba said the initiative would advance the roadmap’s technical capability development pillar by addressing skills gaps, technology limitations and constraints on local manufacturing.

Priority areas include expanding infrastructure, delivering structured training, improving access to finance and strategic partnerships, and strengthening monitoring, compliance and enforcement, he said.

He urged the Board, indigenous manufacturers, operators, service companies, financial institutions and other industry players to work together, saying sustained collaboration would be vital to delivering results.

In a presentation, Nander Salmwang, Assistant Manager of Institutional Strengthening in the Capacity Building Directorate, said the assessment identified about 60 indigenous companies, but only 18 met the required criteria. He outlined challenges to growing local manufacturing and called for targeted measures to close the gaps.

Emmanuel Yusuf, Manager of the Nigerian Content Development Fund (NCDF), presented funding opportunities for indigenous companies and community contractors seeking to strengthen their operations and take part in the industry’s supply chain.

Participants also discussed the Nigerian Oil and Gas Park Scheme (NOGaPS) and its potential to support local manufacturing infrastructure and capabilities.

Presentations and discussions allowed stakeholders to review available opportunities, identify barriers to implementation and consider ways to increase indigenous participation in manufacturing critical oil and gas equipment and components.