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Nigeria’s Oil Sector: A Homegrown Success Story

Nigeria's Oil Sector: A Homegrown Success Story

Abuja, Nigeria – The recent 2025 Nigeria Oil and Gas (NOG) Conference in Abuja shone a bright spotlight on Nigeria’s strides in local content development, with industry leaders commending the Nigerian Content Development and Monitoring Board (NCDMB) for its transformative impact on the nation’s energy sector. The consensus was clear: the NCDMB, through strategic initiatives and unwavering commitment, is not just fostering economic resilience but is also positioning Nigeria as a key player in the regional energy landscape.

Throughout the conference, held from June 30 to July 2, 2025, a recurring theme was the profound influence of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act. This foundational legislation, along with the NCDMB’s persistent efforts, has dramatically reshaped the oil and gas terrain, prompting industry giants to call for continued support from both the government and other stakeholders to sustain this positive momentum.

One of the standout achievements lauded at the NOG Conference’s gala dinner was the commissioning of the Otakikpo Crude Export Terminal in Rivers State. This terminal, the first indigenous onshore crude oil export facility in Nigeria in over half a century, stands as a testament to the NCDMB’s success in championing local infrastructure development. With an initial investment of $400 million, set to reach $1.3 billion, and an impressive 750,000-barrel storage capacity (expandable to 3 million), it’s a clear win for indigenous capability, slashing evacuation costs by up to 40% for marginal fields and contributing significantly to Nigeria’s goal of hitting 2 million barrels of crude output daily.

At the heart of the NCDMB’s strategy is the “Nigeria First” policy, a commitment articulated by Executive Secretary Engr. Felix Omatsola Ogbe during the conference. This policy, a direct extension of the NOGICD Act of 2010 and President Bola Tinubu’s executive orders, ensures that local goods, services, and expertise are prioritized across the entire oil and gas value chain. It’s a deliberate move to keep economic value within Nigeria, create jobs, and stimulate homegrown technological innovation. The NCDMB isn’t just talking the talk; they’re operationalizing this through a robust “Nigeria First Procurement Policy” and ongoing studies to assess local service provider capacities, all designed to ensure transparency and accountability.

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Further demonstrating its dedication to inclusive growth, the NCDMB showcased its revamped Community Contractors Financing Scheme. This initiative, part of the Nigerian Content Intervention (NCI) Fund, now offers community contractors loans of up to ₦100 million with simplified collateral requirements. By partnering with financial institutions like FCMB and the Bank of Industry (BOI), the scheme is making participation in the oil and gas value chain more accessible, directly empowering oil-producing communities.

Another impactful program highlighted was the “Back-to-the-Creek” initiative, which targets underserved oil-producing communities. This program focuses on human capital development, promoting STEM education, vocational training, and digital skills. It’s a strategic alignment with President Tinubu’s 8-Point Agenda, aiming to cultivate a skilled local workforce and create economic opportunities in areas that historically felt marginalized.

The impact of these policies is already evident. Indigenous producers now contribute over half of Nigeria’s oil and gas output, a significant leap forward, as noted by Abdulrazaq Isa, Chairman of the Independent Petroleum Producers Group (IPPG). The shift of onshore and shallow water assets from international oil companies (IOCs) to local operators has empowered IPPG members to target an ambitious 1.3 million barrels per day of oil and 4.5 billion cubic feet of gas by 2027. This transition has been largely facilitated by the impressive growth of Nigerian content across both the operating and service arms of the industry, proving Nigerian operators can indeed compete on a larger stage.

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Major infrastructure projects are also seeing the NCDMB’s fingerprints. Engr. Bashir Bayo Ojulari, Group CEO of NNPC Ltd, acknowledged the Board’s crucial support for the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline, which is expected to be completed by Q4 2025. Furthermore, the NCDMB’s collaboration with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has been instrumental in initiatives like Project 1 Million Barrels, contributing to a production increase to 1.7 million barrels per day, with a clear target of 2.5 million by 2026.

While some critics argue that local content policies inflate costs, industry leaders at the NOG conference strongly countered this, asserting that the economic benefits—including job creation and GDP growth—far outweigh any short-term expenses. Dr. Daere Akobo of Pana Holdings highlighted the NCDMB’s role in projects like Africa’s first digital refinery, underscoring technology’s role in enhancing efficiency. Mr. George Onafowokan of Coleman Cables and Wires lauded the NCDMB’s data-driven approach, celebrating the remarkable 56% local content achievement as a pivotal milestone.

Nigeria’s local content model is now inspiring other African nations. Dr. Ernest Nwapa, the NCDMB’s pioneer Executive Secretary, noted that over 16 African countries have adopted similar laws, taking cues from Nigeria’s NOGICD Act. Regional energy collaborations, such as the West African Gas Pipeline and the Nigeria-Morocco Gas Pipeline, further solidify Nigeria’s position as a vital gas supplier to Europe. calls for standardized regulations and joint regulatory bodies from Ghanaian officials, along with the example of NMDPRA’s Midstream and Downstream Gas Infrastructure Fund, point to a growing regional alignment around Nigeria’s successful model.

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Despite these significant strides, challenges persist. Discussions at the NOG Energy Week emphasized the critical need for sustained investment in human capital to support Nigeria’s ambitious refining goals. As Mr. Anibor Kragha of ARDA pointed out, Nigeria’s $2 billion expenditure on imported petrochemicals in 2023 highlights a clear gap that robust local capacity development can address. The NCDMB’s training and education initiatives, like “Back-to-the-Creek,” are crucial, but expanding these efforts will require broad-based collaboration.

The 2025 NOG Conference served as a powerful platform to underscore the NCDMB’s transformative influence on Nigeria’s energy sector. By championing local content through its “Nigeria First” policy, revitalizing community financing, and investing in human capital, the NCDMB is driving indigenous leadership, fostering economic resilience, and strengthening regional partnerships. As Nigeria pushes to achieve 2 million barrels per day by mid-2025 and beyond, the NCDMB’s strategic vision is undeniably positioning the nation as a global energy hub, with local content at the very core of its sustainable growth story.

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