Tinubu’s executive orders not to undermine NOGICD Act, says NCDMB

The Nigerian Content Development and Monitoring Board (NCDMB) has clarified that the three Executive Orders issued by President Bola Ahmed Tinubu in March 2024 did not weaken or sideline the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.

This assurance was given during a Local Content Masterclass and panel session at the African Energy Week in Cape Town, South Africa, where stakeholders examined Nigeria’s local content milestones, clarified misconceptions, and provided lessons for other African oil and gas-producing countries.

Panelists included NCDMB officials such as Engr. Abayomi Bamidele, Director of Capacity Building; Silas Omomehin Ajimijaye, General Manager, Monitoring and Evaluation; and Ms. Fateemah Mohammed, General Manager, Nigerian Content Development Fund (NCDF). The session was moderated by the General Manager, and Corporate Communications, Obinna Ezeobi.

Engr. Bamidele explained that some industry players had misinterpreted the Presidential Directives to mean that compliance with the NOGICD Act was no longer mandatory. He clarified that the directives simply mandated the use of existing local capacities and eliminated middlemen from the contracting process.

The three orders cover Local Content Compliance, Reduction of Petroleum Sector Contracting Costs and Timelines, and Tax Incentives for Oil and Gas Companies. To align with these directives, NCDMB streamlined its contract approval process from nine to five stages, reducing project costs and accelerating investment decisions.

Bamidele also disclosed that qualified international service companies can now obtain the Nigerian Content Equipment Certificates (NCEC) to participate in deepwater operations—an initiative expected to attract new investments. He added that NCDMB is advancing infrastructure projects such as the Brass Island Shipyard, supported by NLNG, and the Nigerian Oil and Gas Parks at Odukpani, Cross River State, and Emeyal-1, Bayelsa State.

Ajimijaye highlighted NCDMB’s robust monitoring systems that ensure compliance with the NOGICD Act. He noted that oil asset divestments have not reduced compliance levels, as indigenous operators have adopted established frameworks. He also stressed the importance of research and development, citing six Centres of Excellence in Nigerian universities and support for 15 innovative projects through the Board’s R&D Fund.

Speaking on financing, Ms. Mohammed explained that the Nigerian Content Intervention Fund provides single-digit loans to indigenous service companies. She outlined key schemes such as the ₦50 billion Community Contractors Fund, which grants up to ₦100 million to local contractors, and the $20 million Women in Oil and Gas Fund, managed by NEXIM Bank, to support women entrepreneurs.

She urged other African countries to adopt similar financing models to enhance local capacity, while reaffirming NCDMB’s commitment to expanding the Fund and partnering with financial institutions to unlock bigger projects.