NCDMB Boss Canvasses Local Content Framework For Africa

Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Felix Omatsola Ogbe, has made a case for a local content framework that will enhance development of the oil and gas sector in Africa.

This, he said, was necessary so that sub-Saharan African nations can keep pace with unfolding trends in the global oil and gas industry and adopt a unified approach in strengthening local content development and also advance industrialisation and economic growth.  

In a keynote address at the 9th Sub-Saharan African International Petroleum Exhibition and Conference (SAIPEC), in Lagos, on Tuesday, Ogbe said nations like Nigeria, Angola, and Ghana have made notable strides in local content development by boosting indigenous participation in the oil and gas sector, but expressed regret that “fragmented implementation continues to hinder collective progress.”

He called for a collaborative strategy among petroleum-producing nations in sub-Saharan Africa that would foster the sharing of best practices and enhance cross-border partnerships that could drive the competitiveness of indigenous players.  

In his paper entitled “Sub-Saharan Africa Local Content Collaboration Strategy,” Ogbe identified harmonisation of local content policies, human capital development, investment in infrastructure, funding for local companies and technology transfer, as key pillars to Africa’s collaboration strategy.

He noted that “there is a need to develop a robust local content framework that positions the region for long-term economic prosperity,” and that this could be fostered “through the collaborative efforts of APPO [African Petroleum Producers Organisation] and the United Nations Economic Commission for Africa and the African Union.”

Ogbe also highlighted the importance of the African Continental Free Trade Agreement (AfCFTA) as a critical legal framework that could be leveraged to achieve collaborative local content strategy in Africa, given the free trade area it has created by integrating 1.3 billion people across 54 African countries with a combined gross domestic product of over $3 trillion. 

On human capital development, which he described as “pivotal to the successful implementation of local content,” he observed that approximately 60% of Africa’s population is currently under the age of 25, and that this teeming population provides a unique opportunity to fast-track development. “A large, young workforce,” he noted, “can drive expansion through increased productivity and expansion.”

The NCDMB boss dwelt at length on how investment in infrastructure could catalyse regional economic growth, citing the 650,000-barrel-per-day Dangote Integrated Refinery and Petrochemical Company, which he noted would afford Nigeria and other African countries partnership opportunities for sourcing petroleum products and fertiliser.  

Similar projects capable of leveraging collaborations include Kenya’s Konza Technology City, Grand Ethiopian Dam, Lekki Free Trade Zone (Lagos), and facilities like the SHI-MCI FPSO Fabrication/Integration Yard in Lagos.

Others highlighted by the executive secretary were NCDMB’s Nigerian Oil and Gas Parks Scheme (NOGAPS) being developed in seven locations in Nigeria, to which he invited interested businessmen and investors seeking to manufacture industry-related equipment, components and spares to apply.

On funding, Ogbe said “A regional fund or financial framework that provides credit facilities, guarantees, and investment incentives would strengthen indigenous firms,” noting with satisfaction that an African Energy Bank, established by APPO with the support of the NCDMB, which has taken equity investment in it, is soon to be operational. 

He pointed out that “Encouraging joint ventures, research collaborations, and technology-sharing agreements among African nations will drive the adoption of cutting-edge solutions and indigenous technological advancements in the African economy.”

At a Pre-Event Session, the Director, Monitoring and Evaluation of the NCDMB, Mr. Abdulmalik Halilu, had delivered a paper on “Optimisation of Developed Capacities and Capabilities in Africa for the Growth of African Oil and Gas Industry.”