NCDMB – Local Content is Key to Africa’s Energy Future

For African nations to successfully transform their abundant hydrocarbon resources into shared prosperity for their citizens and economic development, they have to make local content policies and effective implementation the cornerstone of their energy future, the Executive Secretary Nigerian Content Development and Monitoring Board (NCDMB), Engr. Felix Omatsola Ogbe has advised.

He made the recommendation on Tuesday at the 4th edition of African Petroleum Producers Organisation (APPO) conference and exhibition on local content in Africa, holding in Brazzaville, Congo.

The event is dedicated to advancing local content implementation and energy development in Africa, and is attended by industry stakeholder across the continent. Engr. Ogbe led Nigeria’s delegation as well as represented the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri at APPO’s statutory ministerial council meeting, where a new Secretary General of the continental body was elected.

Referencing the continent’s rich endowments of over 125 billion barrels of proven crude oil reserves, contributing over 10 percent of world’s crude oil supply, and over 620 trillion cubic feet of natural gas, the Executive Secretary posited that African countries would not derive optimal value from their hydrocarbon resources without implementing local content policies, thereby creating value from their industry’s operations and connecting other sectors of their economies.

Nigeria’s experience and successes over the past 15 years provides a living example of what deliberate local content policy can achieve, he said.

However, he stressed that local content is not merely a regulatory framework, rather it is a development strategy which must be implemented with pragmatism. According to him, local content “represents our resolve to build indigenous capacity, retain value within our borders, and create sustainable jobs for our young and dynamic population.”

Buoyed by the successes of local content implementation in the Nigerian oil and gas industry and linkage sectors, Ogbe restated NCDMB’s commitment to sharing its expertise, learnings, frameworks, and digital tools with other African petroleum producing countries to strengthen local participation across the continent.

He confirmed that NCDMB’s vision extends beyond Nigeria, and the agency has built institutional frameworks that can serve as models for other African nations. The templates include the local content policy design, implementation structures, monitoring templates, and digital compliance systems like the NOGIC Joint Qualification System (NOGIC JQS).

Speaking further, he canvassed the establishment of an African Energy Services Network to foster collaboration among member states of the African Petroleum Producers Organisation (APPO) for better value retention in the continent’s oil and gas projects.

Ogbe who is Nigeria’s representative to APPO’s Executive Board stated that the Network would add a fresh layer to the strategic vision that birthed such continental organisations as APPO, African Energy Bank, and the African Continental Free Trade Area (AfCFTA), whose collective focus is the advancement of intra-country trade, local content and cross-border linkages to achieve energy security and rapid economic development in Africa.

According to Ogbe, the Network would be “a framework where fabrication, manufacturing, and engineering hubs across the continent complement each other, creating a pan-African industrial ecosystem with existing capacities of Nigeria available to drive transformative processes,” he added.

The Local content boss went further to express his satisfaction with the establishment of the African Energy Bank, an initiative championed by APPO and Afreximbank for competitive financing in aid of oil and gas projects in Africa. He promised that “NCDMB stands ready to collaborate, providing technical expertise and project linkages to make the Bank’s objectives a reality,” while urging all stakeholders to demonstrate equal commitment to the Bank to facilitate real growth and sustenance.

He informed the audience which comprised oil and gas policymakers and stakeholders from across the continent that Nigeria has built world-class infrastructure, such as the multibillion-dollar Egina FPSO Integration Yard at LADOL Free Trade Zone, Lagos, “a first-of-its-kind facility in Africa,” which successfully integrated a Floating Production Storage and Offloading Unit, with a storage capacity of 200,000 barrels of crude oil. The facility can serve as a regional hub for FPSO and modular platform integration for the Gulf of Guinea and beyond.

He also mentioned that NCDMB had established oil and gas parks in Bayelsa and Cross River States, to host manufacturing companies producing equipment and components for the oil and gas industry, and thus offering opportunities for small- and medium-scale enterprises (SMEs) and prospective investors to participate.

The NCDMB’s Centre for Research and Development (R&D) programme fosters collaboration between the academia, industry, and start-ups, is also available for joint African research initiatives to develop African solutions for African problems, he added.

Giving further insight on the Board’s programmes, the Executive Secretary, said the Board, through its Human Capacity Development (HCD) programmes, has trained over 20,000 Nigerians in specialised oil and gas skills, which could serve as a model replicable across African energy-producing countries.

He indicated that Nigerian service companies are desirous to forge joint ventures with their African counterparts to deliver engineering, marine, fabrication, and digital energy services.

In addition, cross-border investments in modular refineries, gas processing plants, and local manufacturing could be promoted.

Aside the Executive Secretary’s keynote speech, other senior officials of the Board made presentations and participated in panel discussions, where they showcased Nigeria’s successful local content models, drawing commendations and interests from different countries eager to understudy and implement some of Nigeria’s models in their industries.

One of the sessions explored NCDMB’s journey on local content, lessons learnt and experiences. The panel was moderated by the General Manager, Corporate Communications NCDMB, Dr. Obinna Ezeobi and the panelists included Director, Corporate Services, Dr. Abdulmalik Halilu, General Manager, Finance and Accounts, Mr. Mubarak Zubair, General Manager, Monitoring and Evaluation, Upstream, Mr. Silas Omomehin Ajimijaye and the Managing Director, Cypher Crescent Ltd, Mr. ThankGod Egbe.

Other officials who participated in similar panel discussions and discussed the Board’s programmes included the Manager, Board’s Projects in the Zonal Coordination Division, Mr. Adebayo Joseph and Manager, Facilities and Logistics, Mr. Kamsalem Mohammed.