Presidential Directives Complement, Not Replace, Nigeria’s Oil and Gas Local Content Act, NCDMB Clarifies
Recent Presidential Executive Orders on Nigeria’s Oil and Gas Industry Support Existing Framework
The Nigerian Content Development and Monitoring Board (NCDMB) has clarified that President Bola Ahmed Tinubu’s March 2024 Executive Orders on the oil and gas sector complement rather than diminish the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.
This clarification emerged during a Local Content Masterclass and panel discussion at the African Energy Week in Cape Town, South Africa, where NCDMB officials addressed industry stakeholders’ concerns about the relationship between existing regulations and new presidential directives.
Director of Capacity Building, Engr. Abayomi Bamidele, addressed misconceptions among industry stakeholders who incorrectly interpreted the Presidential Directives as superseding the NOGICD Act. He emphasized that the President’s Special Adviser on Energy had to specifically clarify that the directives merely reinforced the utilization of existing capacities and eliminated intermediaries from contracting processes.
The three Executive Orders in question are:
– Presidential Directive on Local Content Compliance
– Presidential Directive on Reduction of Petroleum Sector Contracting Cost and Timelines
– Presidential Directive on Oil and Gas Companies (Tax Incentives, Exemption, Remission)
In response to these directives, the NCDMB has streamlined its operations, reducing contract approval touchpoints from nine to five, thereby improving efficiency and reducing project costs. Additionally, the Board has introduced a significant policy change allowing qualified international service companies to obtain Nigerian Content Equipment Certificates (NCEC), particularly for deepwater operations.
The panel, which included General Manager Monitoring and Evaluation, Mr. Silas Omomehin Ajimijaye, and General Manager of the Nigerian Content Development Fund (NCDF), Ms. Fateemah Mohammed, with Dr. Obinna Ezeobi moderating, also highlighted Nigeria’s local content achievements and shared insights beneficial to other African oil-producing nations.
These developments signal Nigeria’s commitment to balancing local content requirements with international investment opportunities in its oil and gas sector, while maintaining compliance with existing regulations.
