The Nigerian Content Development and Monitoring Board has identified 18 indigenous companies that meet the required criteria for local manufacturing of critical oil and gas equipment out of approximately 60 firms assessed.
The board disclosed this during a stakeholders’ meeting held in Port Harcourt, Rivers State, on Monday to discuss the implementation of recommendations from an industry-wide study on domestic production of key oil and gas components.
According to a statement by the General Manager, Corporate Communications Division, Nigerian Content Development and Monitoring Board, Obinna Ezeobi, on Tuesday, the assessment identified challenges affecting the development and expansion of local manufacturing capacity, highlighting the need for targeted interventions to address existing gaps.
The study was commissioned by the NCDMB on 7 July 2022, with a team drawn from across the oil industry submitting its report on 12 July 2023.
It focused on developing a strategy for the local production of pumps, valves, flanges, gaskets, bolts and nuts, metering solutions and instrument fittings.
The NCDMB disclosed that domestic manufacturing of the components was essential to advancing Nigerian content because of their importance in sustaining oil and gas production and their significant share of operating and capital expenditure.
Representing the Executive Secretary of the NCDMB, Felix Ogbe, at the meeting, the General Manager, Institutional Development, Capacity Building Directorate, Olugbenga Sheba, said the initiative was aimed at deepening local capacity, promoting industrialisation and retaining more value within Nigeria’s oil and gas industry.
He said developing domestic capacity to manufacture critical industry components would strengthen indigenous enterprises, improve technical competence and enable Nigerian companies to participate more effectively in the supply chains of major oil and gas projects.
Sheba referenced the Nigerian Oil and Gas Industry Content Development Act, 2010, which mandates that Nigerian goods and services receive first consideration, as the legal framework for encouraging local manufacturing and indigenous participation in the sector.
He said the implementation of the study’s recommendations would be guided by the provisions of the act and create greater opportunities for qualified Nigerian companies.
“Today’s rollout is not an isolated initiative; it is an integral pillar of our NCDMB 10-Year Strategic Roadmap, which targets achieving 70 per cent Nigerian content by 2027,” he stated.
He explained that the implementation would advance the technical capability development pillar of the board’s strategic roadmap by addressing skills gaps, technological deficiencies and limitations in local manufacturing capacity.
The NCDMB identified infrastructure expansion, structured capacity-building initiatives, improved access to capital, strategic partnerships, and effective monitoring, compliance and enforcement as key areas of focus.
Sheba urged stakeholders, including indigenous manufacturers, oil and gas operators, service companies and financial institutions, to collaborate in implementing the recommendations.