Yemisi Izuora
Local contractors in Nigeria’s oil and gas sector would begin to witness operational efficiency following the unveiling by the Nigerian Content Development and Monitoring Board (NCDMB) of the new contracting cycle guidelines.
The guidelines aims at addressing the critical challenges operators and contractors face in the sector and would specifically enhance efficiency, promote local content, and streamline operations.
The NCDMB signed the contracting cycle deal unveiling the guidelines during the Practical Nigerian Content (PNC) Forum held recently.
For 13 years, the PNC Forum has been pivotal in advancing local content development within Nigeria’s oil and gas sector. Through its efforts, it has significantly contributed to increasing industry participation while aligning with the objectives of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.
At the PNC event, themed ‘Defining the next frontier for Nigerian content implementation’, which underscores the collective goal of advancing local content across the energy sector, Felix Ogbe, the executive secretary, NCDMB), lauded the participation of over 750 delegates.
“This year (2024) holds a particularly special significance for me as it reflects the milestones we’ve achieved over the past seven years, bringing us closer to our 2027 goals. Since 2015, Nigerian content in the oil and gas industry has grown remarkably—from 26 per cent to an impressive 56 per cent in 2024. This progress underscores the power of collaboration and the impact of a shared vision. Together, we’ve shown that when vision meets action, and commitment translates to opportunities, great things happen”, Ogbe said.
Charged with a mandate through the NOGICD Act to build the capacity of Nigerian companies and individuals to participate in the oil and gas industry actively, the PNC Forum witnessed some achievements of the NCDMB.
These include the approval of 312 Nigerian Content Plans and the issuance of 402 Nigerian Content Compliance Certificates, the launch of ‘Back to the Creek’, an initiative that focused on equipping youths in host communities with the skills needed to meet industry demands and directly supporting the local content drive, the launch of new contracting cycle guidelines to address challenges faced by operators and contractors in the Nigerian oil and gas industry, and the increase in the Nigerian Content level from 26 per cent in 2016 to 54 per cent as of December 2022 and 2023.
Emphasising the importance of the forum, Wemimo Oyelana, portfolio director – Africa & country director Nigeria, dmg, said: “The key objective of this gathering is to showcase government and private sector strategies for deepening local content implementation throughout the Nigerian oil and gas industry.
“Our primary objective must be to increase the investment and activities in the energy industry. PNC provides a platform for public and private sector stakeholders to engage in insightful discussions on emerging opportunities. We look forward to seeing Nigerian companies becoming multinationals.’’