The Nigerian Content Development and Monitoring Board (NCDMB) has introduced updated contracting cycle guidelines to streamline operations in Nigeria’s oil and gas sector.
Engr. Abayomi Bamidele, Director of Project Certification and Authorisation at NCDMB, announced the development during a panel session at the Practical Nigerian Content (PNC) Forum in Yenagoa on Tuesday. He highlighted that the guidelines were commissioned by the Board’s Executive Secretary, with support from the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, at the NCDMB headquarters.
“This launch aligns with the executive order issued by President Bola Ahmed Tinubu and represents a milestone in addressing operational challenges faced by industry operators and contractors,” Bamidele said.
During the panel discussion themed “Evaluating Financial Strategies for Increased Local Content Implementation,” industry stakeholders praised the Presidential Executive Order for its role in reducing operational costs. However, they emphasized the need for additional regulatory and policy adjustments to improve cost competitiveness.
Lady Gracetiti Fredson, Executive Director of Corporate & Business Development at Forelight Energy Solutions Limited, called for an overhaul of the disbursement process for local content funds. While acknowledging the successes of initiatives like the Nigerian Content Development Fund (NCDF), Women in Oil & Gas Intervention Fund, and the Working Capital & Capacity Building Fund, Fredson urged the Board to simplify the documentation process for women-focused funds, which currently requires over 35 documents.
Hope Yongo, Technical Adviser to the Managing Director of the Nigerian Export-Import Bank (NEXIM), advised operators to pay closer attention to unauthorized deductions by commercial banks during transactions, highlighting this as a significant but often overlooked issue.
Adeola Akinrinmade, Executive Director of Finance at Petralon Energy and panel moderator, also called for a review of the documentation requirements for women in energy funds. She further advocated for capacity-building initiatives and urged the NCDMB to address challenges in downstream gas investment funding.
“There is a disparity between the dollar-denominated funding peg on the NCDMB platform and the Naira-based sales of downstream gas products. We request that the Board consider aligning the funding peg with the Naira to ease investment processes,” Akinrinmade stated.
Responding to the concerns, Ifeanyi Ukoha, Acting Director of Finance and Personnel Management at NCDMB, assured stakeholders that the Board remains committed to continuous policy reviews and adjustments to address industry challenges effectively.
The session underscored the need for collaborative efforts to enhance local content and foster sustainable growth in Nigeria’s oil and gas sector.
