Nigeria retains 56% of oil industry spend as local content deepens

Felix Ogbe, the executive secretary of the Nigerian Content Development and Monitoring Board (NCDMB), revealed that Nigeria now retains 56 percent of its oil and gas industry expenditure, a major leap from just 5 percent in 2010.

Speaking at a local content event in Yenagoa, Bayelsa State, Ogbe credited this significant achievement to the sustained implementation of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, 2010.

The announcement coincides with the 15th anniversary of the Act and underscores its critical role in deepening indigenous participation and building national capacity across the oil and gas value chain.

Read also: Oil majors book lower Q1 profits on weaker crude prices

“The journey from 5 percent to 56 percent in-country value retention in just over a decade demonstrates that Nigerian content has moved from aspiration to execution,” Ogbe said. “We now boast ISO-certified fabrication yards, modular refineries, and marine vessel ownership—all delivered by Nigerians.”

This year’s fair, themed “Driving Investment and Production Growth: Shaping a Sustainable Oil and Gas Industry through Indigenous Capacity Development,” serves as a strategic platform to showcase upcoming projects, promote collaboration, and emphasise the importance of local innovation.

Ogbe highlighted that President Bola Ahmed Tinubu’s recent signing of three Executive Orders to revitalise the sector, alongside the newly launched “Nigeria First Policy,” further reinforces the government’s commitment to local content development and energy self-sufficiency.

With the formation of the Africa Energy Bank—set to open in Abuja before the end of Q2 2025—more funding is expected to be available to Nigerian companies. The NCDMB is also championing technology-driven initiatives such as the NOGTECH Hackathon to promote innovation and sustainability.

Read also: Oil price to stay lower for longer as Saudi Arabia abandons price defence for market share

“The real opportunity lies ahead,” Ogbe stressed, calling for increased local participation across upstream, midstream, and downstream operations.

He urged International Oil Companies (IOCs) to prioritise Nigerian firms in project execution, citing upcoming ventures like UBETA, Bonga North, and Zabazaba as key opportunities for indigenous involvement.

The executive secretary also acknowledged the recent acquisition of onshore assets by local firms, calling it a “strategic shift” in value retention and national ownership. Companies like Renaissance, Seplat, and Oando were applauded for their leadership and encouraged to continue mentoring emerging local players.