A Major Leap Forward: Nigeria’s Oil and Gas Local Content Reaches 56%
In a significant achievement for Nigeria’s petroleum industry, the Nigerian Content Development and Monitoring Board (NCDMB) has announced that local content in the sector has now reached 56%. This milestone was revealed by the Executive Secretary of NCDMB, Engr. Felix Omotsola Ogbe, during a press conference on Wednesday, March 19, 2025.
The announcement comes as the board prepares to host the fifth edition of the Nigerian Oil and Gas Opportunity Fair (NOGOF), scheduled for May 21 and 22 in Yenagoa, Bayelsa State. The event aims to showcase investment opportunities and drive further growth in the sector.
What Does 56% Local Content Mean?
Local content refers to the development of local skills, technology, and resources within Nigeria’s oil and gas industry. Achieving 56% local content signifies that more than half of the value created in the sector is now being retained within the country. This includes job creation, technology transfer, and the use of locally sourced materials and services.
Engr. Ogbe emphasized that the board is continuously reviewing its strategies to further enhance this figure. “The review is ongoing right now to enable us to determine where we are in terms of the percentage of local content we have achieved up to date. So, the last count is 56% of local value created,” he said.
Driving Growth Through Presidential Directives
The NCDMB Executive Secretary highlighted the role of three Presidential directives in unlocking fresh investments and driving growth in the sector. These directives have created a favorable environment for local and international investors, leading to increased opportunities for Nigerians in the oil and gas value chain.
NOGOF 2025: A Platform for Showcasing Opportunities
The upcoming Nigerian Oil and Gas Opportunity Fair (NOGOF) is set to be a game-changer for the industry. According to Ogbe, the event will provide a platform for companies in the upstream, midstream, and downstream sectors to showcase upcoming projects and investment opportunities.
“NOGOF enables service companies, manufacturers, oil and gas trainers, and job seekers to invest in facilities and capabilities that will domicile most of the activities in the country,” he explained.
At the 2023 edition of NOGOF, over 100 investment opportunities were presented, including projects like Ubeta and Bonga North, which have since been executed.
Indigenous Companies Take the Lead
The Chairman of the Petroleum Technology Association of Nigeria (PETAN), Mr. Wole Ogunsanya, praised the NCDMB for its role in growing the oil and gas value chain. He noted that the recent acquisition of oil and gas assets by Nigerian companies from International Oil Companies (IOCs) is a testament to the success of local content initiatives.
“What it means is that in the ExxonMobil deal, the 40% of the oil that used to go to ExxonMobil and be taken outside Nigeria will now reside in Nigeria. For the SPDC deal, 45% of its profit will now be with Renaissance, an indigenous company. That is what local content is all about,” Ogunsanya emphasized.
Read Also: “EFCC Arrests Bauchi State Accountant General Over Alleged N70 Billion Fraud Scandal”
The Road Ahead: Shaping a Sustainable Future
The theme of NOGOF 2025, “Driving Investment and Production Growth: Shaping a Sustainable Oil and Gas Industry through Indigenous Capacity Development,” reflects the board’s commitment to building a sustainable and self-reliant oil and gas sector.
Key objectives include:
- Increasing gas and crude oil production to boost revenue.
- Meeting domestic crude oil and gas supply obligations.
- Encouraging indigenous capacity development to reduce reliance on foreign expertise and resources.
Why This Matters
The 56% local content milestone is a testament to Nigeria’s growing capacity to harness its natural resources for national development. It also highlights the importance of policies like the Nigerian Oil and Gas Industry Content Development Act 2010, which aims to promote the use of local resources and skills in the sector.
As Nigeria continues to push for greater local participation in its oil and gas industry, events like NOGOF 2025 will play a crucial role in driving investment, creating jobs, and ensuring sustainable growth.
