NCDMB, stakeholders chart path for domestic manufacturing of critical oil and gas equipment

The Nigerian Content Development and Monitoring Board (NCDMB), in collaboration with oil and gas stakeholders, has initiated steps to implement recommendations from an industry-wide study on in-country manufacturing of key components.

A stakeholders’ meeting was held on Monday in Port Harcourt, Rivers State, to define practical strategies for implementing the report, aimed at expanding local manufacturing capacity, empowering indigenous enterprises, and reducing reliance on imported components.

On 7 July 2022, the NCDMB commissioned a diverse oil industry team to develop a strategy for in-country manufacturing of pumps, valves, flanges, gaskets, bolts and nuts, metering solutions, and instrument fittings, and the team submitted its report on 12 July 2023. The study was initiated after local manufacturing of these components was identified as essential to advancing Nigerian content, given their significant role in sustaining oil and gas production uptime and their substantial share of both operating and capital expenditures.

Representing the Executive Secretary of the NCDMB, Felix Omatsola Ogbe at the meeting, the General Manager, Institutional Development, Capacity Building Directorate, Mr Olugbenga Sheba, underscored the Board’s drive to deepen local capacity, promote industrialisation, and maximise value retention in the Nigerian oil and gas industry.

He emphasised that developing the capacity to manufacture critical industry components within the country would strengthen indigenous enterprises, improve technical competence, and position Nigerian companies to participate more effectively in the supply chains of major oil and gas projects.

He cited the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, 2010, which provides for first consideration of Nigerian goods and services, reinforcing the statutory basis for promoting indigenous participation and local production.

According to him, the Board remains committed to ensuring that the implementation of the study report’s recommendations is guided by the provisions of the Act and creates greater opportunities for qualified Nigerian companies to thrive.

“Today’s rollout is not an isolated initiative; it is an integral pillar of our NCDMB 10-Year Strategic Roadmap, which targets achieving 70% Nigerian Content by 2027,” he stated.

He explained that the implementation of the study report would directly advance the technical capability development pillar of the Board’s 10-Year Strategic Roadmap by addressing identified skills gaps, technological deficiencies, and limitations in local manufacturing capacity.

He further outlined key areas of focus for the implementation process, including infrastructure expansion, structured capacity-building initiatives, improved access to capital and strategic partnerships, as well as effective monitoring, compliance, and enforcement.

He urged stakeholders to demonstrate strong commitment to the implementation process, stressing that collaboration among the Board, indigenous manufacturers, operators, service companies, financial institutions, and other industry players would be critical to achieving sustainable results.

In his presentation, Assistant Manager Institutional Strengthening of the Capacity Building Directorate, Mr Nander Salmwang, disclosed that approximately 60 indigenous companies had been identified in the assessment, of which only 18 met the required criteria. He also highlighted challenges affecting the development and expansion of in-country manufacturing capacity, underscoring the need for targeted interventions to bridge existing gaps.

Similarly, Manager, Nigerian Content Development Fund (NCDF), Mr Emmanuel Yusuf presented funding opportunities available through the NCDF, explaining the relevance of financial support to indigenous companies and community contractors seeking to strengthen their operations and participate more actively in the industry’s supply chain.

The meeting also highlighted the relevance of the Nigerian Oil and Gas Park Scheme (NOGaPS) in supporting the development of local manufacturing infrastructure and capabilities. Other presentations and discussions provided a platform for stakeholders to examine existing opportunities, identify implementation challenges, and explore practical approaches to improving indigenous participation in the manufacturing of critical oil and gas equipment and components.