132 Nigerian firms secured N51.7bn, $359m in local content funds – NCDMB

A total of 132 Nigerian companies have accessed N51.785bn and $359.653m from local content intervention funds aimed at promoting indigenous participation in the country’s oil and gas sector, the Nigerian Content Development and Monitoring Board has disclosed.

The funding, designed to strengthen the capacity of Nigerian firms, includes the $350 million Nigerian Content Intervention Fund, the $50 million Working Capital Fund, which is supported by NEXIM Bank, and the Women in Oil and Gas Fund.

Fresh data released by the NCDMB on Monday showed that three manufacturing firms received N7.561bn, 38 companies secured N22.144bn and $205.666m for asset acquisition, 10 firms obtained N2.232bn and $24.728m to finance contracts, while 25 companies benefited from N15.98bn and $115.998 million for loan refinancing.

Speaking at a media stakeholders workshop in Abuja, the NCDMB Director of Corporate Services, Abdulmalik Halilu, said the funding has significantly increased local participation in the sector, rising from 44 per cent three years ago to 61 per cent this year.

“The NLNG Train-7 project alone engaged about 8,000 Nigerians, highlighting the tangible impact of local content policies,” he said.

“Local content is about domestication based on global best practices, not mere indigenisation or promotion of inferior goods,” he said.

Halilu emphasised that NCDMB has two core mandates under the Nigerian Oil and Gas Industry Content Development Act: capacity building and enforcement.

“You cannot enforce local content without capacity,” he said. “The Act contains 17 broad schedules and about 300 specific performance indicators.”

He added, “Local content drives industrialisation, job creation, research ecosystem development, ownership of critical assets, sustainable operations, environmental responsibility, and profitable indigenous participation in the oil and gas sector.”

The push for local content dates back to 2001, during President Olusegun Obasanjo’s administration, when a study revealed that the oil and gas industry prioritised revenue over in-country value addition.

This prompted the creation of a Nigerian Content Division within NNPC to promote employment, industrialisation, and domestic capacity.

The policy was later entrenched by the 2010 Nigerian Oil and Gas Industry Content Act under President Goodluck Jonathan, ensuring the philosophy of local content, producing locally without compromising global standards, remained a sustainable feature of Nigeria’s oil and gas sector.

Halilu further explained the Board’s structured approach, “Every intervention is based on a clear framework and roadmap, with assigned ownership and performance scorecards. What doesn’t get measured doesn’t get done.”

He highlighted NLNG Train-7 as a model project, noting that 8,000 Nigerians were employed alongside 500 expatriates, and 1,400 vendors were engaged. Key achievements included local fabrication of pressure vessels, certified pumps, boots, and cables, with capacities now leveraged by other sectors, including power and construction.

“The local content initiative ensures that Nigerians are not just participants but owners of critical assets, capable of sustainable and profitable operations,” Halilu added.

Through legacy investments, such as the establishment of the FPSO integration yard in Lador, the NCDMB has encouraged large-scale indigenous investment, creating infrastructure that will support future projects and reduce dependence on foreign capacity.

“This is about domestication, industrialisation, and global competitiveness. Local content is not a replacement for indigenisation or supply of inferior goods; it is a strategic pathway to ensure Nigeria captures the full value of its oil and gas sector,” Halilu said.

Looking beyond Nigeria, he said the board is promoting local content development across Africa, noting that Nigeria alone may not provide a sufficiently large market to attract certain high-end investments.

“Africa combined has about 125 billion barrels of crude oil and over 800 trillion cubic feet of gas. That is why we are working through the African Petroleum Producers’ Organisation to promote local content across the continent.”

He revealed that initiatives such as the Africa Energy Bank and the adoption of the Brazzaville Accord on local content were outcomes of Nigeria’s leadership in the area.

The NCDMB General Manager of Corporate Communications, Obinna Ezeobi, assured all that the Board would continue to support journalists through capacity-building initiatives to improve reporting on the industry.

“Today, we continue the tradition of equipping Nigerians, this time journalists, with the capability to engage meaningfully with industry players,” he said.