A high-level delegation from the Democratic Republic of Congo (DRC), led by Minister of Hydrocarbons Simplice Stev Onanga, has arrived in Nigeria to study its local content framework for the oil and gas industry. The delegation was received by Nigeria's Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, in Abuja on Monday. Lokpobiri reaffirmed Nigeria's commitment to knowledge-sharing with fellow African nations, particularly under the African Petroleum Producers Organisation (APPO).
Nigeria has achieved 61% local content capacity since the enactment of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act 16 years ago, Lokpobiri highlighted. The divestment of onshore oil and gas assets by international oil companies (IOCs) has created opportunities for indigenous firms to acquire the divested assets and thrive. This has enabled companies such as Renaissance Africa Energy Company, SEPLAT Energy Producing Unlimited, and Oando Energy Resources Nigeria Limited to grow.
Lokpobiri emphasized that the solution to Africa's energy challenges lies within Africa, stressing that Nigeria currently produces over 1.8 million barrels of crude oil per day. While deep offshore operations remain dominated by foreign companies, Nigerian oil and gas operating and service firms now control land and shallow water assets, driving local content growth. This growth has been facilitated by local content initiatives, which are industry-funded through a 1% Nigerian Content Development Fund (NCDF) levy on awarded upstream oil and gas contracts.
The Nigerian Content Development and Monitoring Board (NCDMB) has expressed its readiness to support the DRC in establishing a robust local content framework. NCDMB Executive Secretary, Felix Omatsola Ogbe, represented by Director of Corporate Services, Dr Abdulmalik Halilu, pointed to Nigeria's institutional structures, regulatory synergy, and a 10-year strategic roadmap aimed at achieving 70% in-country value retention and creating over 300,000 direct jobs by 2027.
Minister Onanga praised Nigeria's achievements, noting that it is the only African country to have attained significant self-sufficiency in oil and gas local content. He expressed pride in being in Nigeria to witness what has been accomplished. The DRC delegation's understudy visit will continue until Friday and will include tours to key facilities, including the NCDMB Headquarters, Onne Free Zone fabrication workshops, and NLNG supplier sessions.
The visit will also include engagements at the UniPort Gas Centre, LADOL/Nigerdock yards, and other key facilities. This will provide the DRC delegation with a comprehensive understanding of Nigeria's local content model and its implementation. The knowledge gained from this visit is expected to inform the development of a similar framework in the DRC.
The collaboration between Nigeria and the DRC is a significant step towards promoting knowledge-sharing and cooperation among African nations in the oil and gas industry. The visit is expected to strengthen the relationship between the two countries and contribute to the growth of the African oil and gas sector.
Key points
- Nigeria has achieved 61% local content capacity in the oil and gas industry since the enactment of the NOGICD Act 16 years ago.
- The Nigerian Content Development Fund (NCDF) levy on awarded upstream oil and gas contracts has facilitated local content growth.
- Nigeria aims to achieve 70% in-country value retention and create over 300,000 direct jobs by 2027.
