Nigerian oil sector gets N51bn local content funding boost

The Nigerian Content Development and Monitoring Board has disclosed that 132 local companies have accessed a total of N51.785 billion and $359.653 million from intervention funds aimed at promoting indigenous participation in the country’s oil and gas sector. The funding, which includes the $350 million Nigerian Content Intervention Fund and the $50 million Working Capital Fund, is designed to strengthen the capacity of Nigerian firms.

According to data released by the NCDMB, three manufacturing firms received N7.561 billion, while 38 companies secured N22.144 billion and $205.666 million for asset acquisition. Additionally, 10 firms obtained N2.232 billion and $24.728 million to finance contracts, and 25 companies benefited from N15.98 billion and $115.998 million for loan refinancing.

The NCDMB Director of Corporate Services, Abdulmalik Halilu, stated that the funding has significantly increased local participation in the sector, rising from 44% three years ago to 61% this year. He cited the NLNG Train-7 project as an example, which engaged about 8,000 Nigerians and highlighted the tangible impact of local content policies.

Halilu emphasized that local content is about domestication based on global best practices, not mere indigenisation or promotion of inferior goods. He noted that the NCDMB has two core mandates: capacity building and enforcement, and that local content drives industrialization, job creation, and research ecosystem development.

The push for local content in Nigeria’s oil and gas sector dates back to 2001, when a study revealed that the industry prioritized revenue over in-country value addition. The Nigerian Oil and Gas Industry Content Act, enacted in 2010, ensured that local content remained a sustainable feature of the sector.

The NCDMB has adopted a structured approach to promoting local content, with every intervention based on a clear framework and roadmap. The Board has also encouraged large-scale indigenous investment, creating infrastructure that will support future projects and reduce dependence on foreign capacity.

Looking beyond Nigeria, the NCDMB is promoting local content development across Africa, recognizing that the continent has significant oil and gas reserves. The Board is working through the African Petroleum Producers’ Organisation to promote local content across the continent, with initiatives such as the Africa Energy Bank and the adoption of the Brazzaville Accord on local content.

The NCDMB’s efforts to promote local content are expected to continue, with the Board committed to supporting journalists through capacity-building initiatives to improve reporting on the industry. As the Nigerian oil and gas sector continues to evolve, the importance of local content in driving industrialization, job creation, and economic growth is likely to remain a key focus for the NCDMB and other stakeholders.