Industry Leaders Defend Local Content, Back NCDMB at NOG Energy Week

At the NOG Energy Week held in Abuja, key figures in Nigeria’s oil and gas industry strongly defended the country’s local content policy, countering claims that it drives up operational costs.

They warned that such criticisms threaten Nigeria’s industrial progress and commended the Nigerian Content Development and Monitoring Board (NCDMB) for its central role in enhancing local capacity and driving innovation.

During a panel session titled “Technology as a Business Strategy,” speakers praised the NCDMB’s achievements in promoting local expertise and technological growth. Dr. Daere Akobo, Group Chief Executive Officer of Pana Holdings, argued that the benefits of local content far outweigh any concerns about increased costs.

He stated that prioritizing cost over economic growth and job creation is shortsighted and could harm national development. He stressed that Nigeria must remain committed to its local content goals.

Dr. Akobo also highlighted his company’s development of Africa’s first digital refinery as a clear example of how technology and local expertise can work together. He noted that inefficiencies persist due to fragmented data systems across the sector and emphasized the importance of consolidating data to improve performance and transparency.

Mr. George Onafowokan, Managing Director of Coleman Cables and Wires, echoed these sentiments, praising NCDMB’s data-driven strategies. He said the availability and proper use of data are vital for progress and credited NCDMB with helping the industry achieve 52 percent local content, which he described as a significant milestone.

The panel agreed that harnessing technology, integrating data, and supporting strong institutions like NCDMB are essential steps toward a resilient and competitive oil and gas sector. They urged stakeholders to reject the idea that local content is to blame for rising costs. Instead, they called for firm policy frameworks and increased investment to promote inclusive growth and long-term stability in the industry.

Leaders from Ghana and other African countries also acknowledged Nigeria’s growing influence in local content policy and emphasized the need for greater regional cooperation. They made these comments at the same NOG Energy Week event.

Dr. Ernest Nwapa, the pioneer Executive Secretary of the NCDMB, noted that Nigeria’s oil and gas sector is experiencing a revival, driven by increased output, deregulation, and better governance. He emphasized that sustaining this momentum will require long-term planning.

He also pointed out that Africa plays a central role in Nigeria’s foreign policy, citing projects like the West African and African Gas Pipelines, the African Continental Free Trade Area (AfCFTA), and President Bola Ahmed Tinubu’s “Nigeria First, Africa Next” strategy as key examples of Nigeria’s continental leadership.

Dr. Nwapa recalled that when Nigeria first introduced its local content law, it faced criticism from international organizations like the World Trade Organization and the European Union, who viewed it as anti-competitive. However, he noted that today, over 16 African countries and even the United States have implemented similar policies. He urged Nigeria to continue setting the pace by attracting investments that benefit the wider African continent.

Nasir Alfa Mohamed, Deputy Chief Executive of Ghana’s Petroleum Commission, pointed out that many African countries look to Nigeria as a model for energy policy. He called for the removal of barriers to regional integration and supported the idea of shared regulatory frameworks.

He suggested that businesses from across Africa should be able to compete fairly for contracts in Nigeria and advocated for mutual recognition of standards and enhanced collaboration through platforms like the African Oil Forum.

Mr. Mohamed also mentioned Ghana’s growing energy partnerships with countries like Nigeria and Uganda, noting that Ghana is currently the only African country participating in the International Upstream Forum.

Engr. Farouk Ahmed, Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), represented by Professor Zainab Gobir, emphasized the importance of shared infrastructure, consistent tariffs, and harmonized regulations across African nations.

He called on countries to support each other in meeting sustainability targets. He cited the Petroleum Industry Act as an example of forward-thinking policy, particularly its Midstream and Downstream Gas Infrastructure Fund, which aims to reduce risks for investors in gas and infrastructure projects.

Professor Gobir also noted that NMDPRA is working closely with NCDMB to ensure that regulatory frameworks promote fair participation while simplifying operational procedures through initiatives like a one-stop shop for stakeholders.

Engr. Gbenga Komolafe, Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), reaffirmed Nigeria’s leadership role in Africa’s energy sector.

He pointed out that Nigeria holds nearly 30 percent of the continent’s oil reserves and 33 percent of its gas. He highlighted the success of Nigeria’s host community development model, which he said has brought stability to oil-producing areas and could serve as a template for other nations.

Mr. Komolafe also spoke about NUPRC’s recent accomplishments, including the rollout of 17 forward-looking regulations and the introduction of frameworks to encourage deepwater exploration. He mentioned a production optimization program that relies on cooperation between government agencies and oil companies.

He praised President Tinubu’s recent Executive Order, which enhances the country’s local content laws by prioritizing the development of human capital and encouraging investment. Komolafe concluded by noting that international oil companies now view Nigeria’s pool of skilled professionals as a strong advantage and that Nigeria’s local content model is being adopted by other African nations.