Nigeria’s oil bodies unite to audit local capacity, push industry toward manufacturing and global competitiveness

Engr. Abayomi Bamidele

The Nigerian Content Development and Monitoring Board (NCDMB), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian Petroleum Exchange (NIPEX), and the Oil Producers Trade Section (OPTS) have agreed on a joint framework to harmonize how in-country capacities and capabilities are assessed.

Engr. Felix Omatsola Ogbe, Executive Secretary of the NCDMB, announced the initiative on Monday, July 6, 2026, in Abuja during the 25th Nigeria Oil and Gas (NOG) Week. 

He said the next phase of local content development will prioritize capacity expansion, industrialization, manufacturing, sustainability, and global competitiveness, moving beyond a sole focus on indigenous participation and regulatory compliance.

Reflecting on progress since the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010, Engr. Ogbe noted that indigenous participation rose dramatically in the first 15 years, climbing from under 5 percent to 61 percent. Nigerians now own and manage key operational assets, deliver services, execute projects, and play significant roles across the oil and gas value chain.


In a keynote delivered on behalf of the NCDMB by Engr. Abayomi Bamidele, Director of the Capacity Building Directorate, officials said Nigeria’s energy sector is now capable of underpinning a robust manufacturing ecosystem. However, many local manufacturers still face challenges, including limited market access, technology shortfalls, and financing constraints.

He pointed out that addressing the challenges “requires strategic collaboration among regulators, operators, service companies, financial institutions, and manufacturers,” and noted that within the regulatory and business environment of the Nigerian oil and gas industry, there is potential for robust collaboration on the back of the Presidential Directives on Local Content Compliance Requirements.

He explained that under the Harmonisation Road Map drawn up by the oil and gas industry regulatory agencies in concert with the OPTS, the next key action is to commence modification of their various certification portals in readiness for joint industry capacity audits of in-country manufacturers and service providers operating within the oil and gas industry.

The outcome of the audit, according to a press release signed by Dr. Obinna Ezeobi, GM, Corporate Communications Division, will provide a detailed understanding of existing capabilities, eliminate intermediaries, improve contracting cycle timelines, and ensure direct patronage of established service providers for business sustainability and growth.

The capacity audit, the NCDMB boss emphasised, would aid in identifying service providers able to support major capital projects such as the seven Deepwater Projects, while the industry through the Harmonisation Framework has adopted five classes of service providers, which recognizes new entrants into the oil and gas industry that require support in one form or the other. 

According to him, “Class 4 and Class 5 of the Framework tagged ‘Emerging Players’ and ‘Essential Vendors’ [respectively] will form the foundation for a robust vendor development programme designed to support the evolution of such service providers into manufacturers and original equipment manufacturers.” He expects the joint industry capacity audit to commence within this third quarter. 

“As we look ahead,” he stated, “I believe that the next phase of local content development should be guided by three strategic priorities.” The first of the three is competence, that is, continuous investment in human capital, technology transfer, innovation, and technical excellence to ensure Nigerian companies can deliver at global standards.


For the second priority, namely, capacity expansion, he said, “We must move deliberately towards manufacturing, industrialization, and the development of scalable productive assets. For collaboration, the third priority, he said industry operators, service companies, government agencies, financial institutions, original equipment manufacturers (OEMs) and research institutions must work together to build sustainable industrial ecosystems. 

On recent initiatives on capacity building by the Board, the Executive Secretary, highlighted the release of the Nigerian Content Equipment Certificate (NCEC) Application Guidance Notes to provide clarity on requirements to secure approval of applications, the Field Readiness Training Programme, which focuses on top-10 high-demand areas, the Nigerian Content Trainers Registration Certificate (NCTRC), Back-to-the-Creek Initiative, and the Cradle-to-Career Academic Excellence Recognition and Advancement Programme.

The NOG Energy Week 2026, as the Executive Secretary explained, is dedicated to providing further clarity to oil and gas industry stakeholders on the provisions of the NOGICD Act, the Board’s processes.
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