Business
NCDMB streamlines oil industry operations, cuts contracting time to six months
The Nigerian Content Development and Monitoring Board (NCDMB) has eliminated middlemen from the oil and gas industry value chain and successfully reduced the contracting cycle to just six months.
This milestone was achieved under three key Presidential Directives on Local Content operations, issued by President Bola Tinubu in March 2024, according to the Board’s Executive Secretary, Engr. Felix Omatsola Ogbe.
Speaking at a breakfast meeting with media executives in Lagos, Ogbe highlighted that NCDMB had fully complied with the 2024 Presidential Directive on Local Content Compliance Requirements (EO 41).
This directive mandates that only local service companies with proven capacity and capability can participate in oil and gas tenders.
In addition, the Board has fast-tracked project approval processes and reduced its touchpoints in line with the Presidential Directive on the Reduction of Petroleum Sector Contracting Costs and Timelines (EO 42).
The Executive Secretary explained that these changes are designed to attract new investments, both local and international, expedite the development of oil and gas projects, and improve Nigeria’s economic outlook.
He hinted at a forthcoming initiative called “Back to the Creeks,” aimed at ensuring that local content efforts benefit oil-producing communities and rural areas across Nigeria.
Addressing concerns about local content implementation inflating production costs, Ogbe dismissed the claims.
He clarified that the primary drivers of high crude oil production costs are operational disruptions caused by community-related issues or technical problems, along with the costs of providing security and dealing with “briefcase contractors” who inflate project prices.
In a bid to foster industry growth, Ogbe emphasized that NCDMB is focused on creating an enabling environment for international oil companies to make final investment decisions on new projects.
The Board is also implementing policies to support indigenous oil and gas service companies.
He further revealed plans to revive the insurance services guidelines signed in 2022 with the National Insurance Commission (NAICOM), ensuring that the Nigerian oil and gas industry prioritizes local insurance firms.
During the meeting, Ogbe stressed the importance of public communication and awareness for the success of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act and the Nigerian Content 10-year strategic roadmap.
He commended the media for promoting the Board’s activities and promised to strengthen collaboration with media outlets under his leadership.
Other senior NCDMB officials, including the Director of Corporate Services and Capacity Building, Dr. Ama Ikuru, and Director of Monitoring and Evaluation, Mr. Abdulmalik Halilu, provided updates on key Board initiatives.
Halilu reported that the Nigerian Content Intervention Fund (NCI Fund) has achieved a performance rate of over 90%, thanks to increased access by qualified companies and high repayment rates.
However, he acknowledged challenges with the Community Contractors Fund, a product under the NCI Fund, and indicated that a team has been set up to revamp this product with new partners and terms.
The meeting also included updates on the implementation of the Presidential Directive on Tax Incentives for gas investments, which aims to attract further investment into the sector.
The NCDMB’s efforts to streamline operations and enhance local content are seen as crucial to boosting Nigeria’s oil and gas sector in the coming years.