Harmonised framework to strengthen local manufacturing, streamline contracting, and prepare indigenous firms for major oil and gas projects.
The Nigerian Content Development and Monitoring Board (NCDMB), in collaboration with key regulatory agencies and industry stakeholders, has concluded plans to commence joint industry capacity audits of manufacturers and service providers in Nigeria’s oil and gas sector as part of efforts to deepen local content, strengthen industrial capacity, and enhance global competitiveness.
The audits, expected to begin in the third quarter of 2026, will be conducted jointly by the NCDMB, the Nigerian Upstream Petroleum Regulatory Commission, the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the Nigerian Petroleum Exchange, and the Oil Producers Trade Section, which comprises international oil companies operating in Nigeria.
The Executive Secretary of the NCDMB, Felix Omatsola Ogbe, disclosed the development on Monday in Abuja during the 25th edition of the Nigeria Oil and Gas (NOG) Energy Week.
Ogbe explained that the participating organisations had jointly developed a harmonised framework to standardise the grading system for assessing and ranking in-country capacities and capabilities across the oil and gas industry.
Represented at the event by the Director of the Capacity Building Directorate, Abayomi Bamidele, the Executive Secretary said the next phase of Nigeria’s local content implementation would focus on capacity expansion, industrialisation, manufacturing, sustainability, and global competitiveness, representing a strategic shift from the previous emphasis on indigenous participation and regulatory compliance.
He noted that the first 15 years of implementing the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, 2010, had transformed indigenous participation in the sector from less than five per cent to 61 per cent, with Nigerian companies now owning and managing critical operational assets, executing major projects, and providing services across the entire oil and gas value chain.
According to him, the country’s energy sector has developed sufficient capacity to support a vibrant manufacturing ecosystem. However, many local manufacturers continue to face significant challenges, including limited access to markets, technology gaps, and inadequate financing.
He stressed that overcoming these obstacles would require strategic collaboration among regulators, operators, service companies, financial institutions, manufacturers, and other industry stakeholders.
Ogbe also pointed to the Presidential Directives on Local Content Compliance Requirements as providing a strong foundation for improved collaboration and greater efficiency within the industry’s regulatory and business environment.
Explaining the harmonisation roadmap, he said the participating regulatory agencies, working alongside the OPTS, would now begin upgrading their various certification portals in preparation for the joint industry capacity audits.
He said the audits would provide a comprehensive assessment of the capabilities of manufacturers and service providers operating within Nigeria’s oil and gas sector.
According to him, the initiative is expected to eliminate unnecessary intermediaries in the contracting process, shorten procurement timelines, promote direct patronage of qualified service providers, and improve the long-term sustainability and growth of indigenous businesses.
The NCDMB boss added that the audit would also identify companies with the technical competence to participate in major capital projects, including the proposed seven deepwater developments.
He further disclosed that the harmonisation framework had introduced five categories of service providers to better reflect the varying levels of industry capacity and maturity.
He explained that the fourth and fifth categories, designated as “Emerging Players” and “Essential Vendors” respectively, would serve as the foundation for a comprehensive vendor development programme aimed at supporting the growth of indigenous companies into manufacturers and original equipment manufacturers (OEMs).
Ogbe expressed optimism that the joint industry capacity audit would commence within the third quarter of the year.
Speaking on the future of local content development, he outlined three strategic priorities that would guide the next phase of implementation.
The first, he said, is competence through sustained investment in human capital development, technology transfer, innovation, and technical excellence to ensure Nigerian companies can compete successfully on the global stage.
The second priority is capacity expansion, with deliberate emphasis on manufacturing, industrialisation, and the development of scalable productive assets capable of supporting long-term economic growth.
The third priority, according to him, is collaboration among operators, service companies, government agencies, financial institutions, original equipment manufacturers, and research institutions to build sustainable industrial ecosystems for the country’s energy sector.
Highlighting recent initiatives undertaken by the Board to strengthen capacity development, Ogbe listed the Nigerian Content Equipment Certificate (NCEC) Application Guidance Notes, designed to provide greater clarity on certification requirements, the Field Readiness Training Programme targeting the top 10 high-demand skills in the industry, the Nigerian Content Trainers Registration Certificate (NCTRC), the Back-to-the-Creek Initiative, and the Cradle-to-Career Academic Excellence Recognition and Advancement Programme.
He added that the NOG Energy Week 2026 was also intended to provide stakeholders with further guidance on the provisions of the Nigerian Oil and Gas Industry Content Development Act and enhance understanding of the Board’s regulatory processes as it drives the next phase of Nigeria’s local content agenda.
