Harnessing Local Content for the Development of the Niger Delta and Nigeria: A Policy Report

Executive Summary
The Nigerian Content Development and Monitoring Board (NCDMB) plays a crucial role in promoting local content development in the oil and gas industry. As the Senate Committee on Local Content of the 10th Senate convenes, it is essential to learn from the successes and challenges of the 8th and 9th Senates to effectively address local content issues and drive development in the Niger Delta region. This report provides an in-depth analysis of the NCDMB’s efforts, highlights key areas of improvement, and offers recommendations for the Senate Committee to enhance local content development.

Background
The NCDMB was established to implement the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, which aims to increase Nigerian participation in the oil and gas industry. The Board’s mission is to promote the development and utilization of in-country capacities for industrialization through effective implementation of the Nigerian Content Act.

Progress and Challenges
The NCDMB has made significant progress in promoting local content development, with notable achievements including:

• Increased Local Expenditure: Local expenditure in the oil and gas industry has risen from 5% in 2010 to 26% in 2017, with a target of 70% by 2027.
• Improved Compliance: The Board has issued 402 Nigerian Content Compliance Certificates (NCCCs) and approved 312 Nigerian Content Plans.
• Capacity Building: The NCDMB has established a training program to develop competent manpower for the industry.

However, challenges persist, including:

• Inadequate Funding: Local contractors face difficulties accessing funds for contracts awarded by oil and gas companies.
• Infrastructure Deficits: The Niger Delta region requires significant investment in infrastructure development to support local businesses.

In the past, the Centre for Public Accountability in 2016 raised pertinent issues on how the Nigerian Content and Development Monitoring Board (NCDMB) has faced several issues, including:

• Alleged N7.7 Billion Fraud: The Centre for Public Accountability (CPA) has called for an investigation into alleged financial misconduct within NCDMB, citing misappropriation of funds without procurement regulation violations.
• Corrupt Practices in Public Projects: Research has identified issues like godfatherism, settlement, and low salaries for public administration employees as factors contributing to corruption in public project delivery.
• Embezzlement and Bribery: Corruption in city boards, including embezzlement, bribery, and kickbacks, can siphon off resources meant for community development, affecting public services and infrastructure.

To combat these issues, NCDMB stated that they have taken steps such as:

• Establishing an Anti-Corruption Unit: Providing a functional office and support for the unit to discharge its functions.
• Preventive Mechanisms: Implementing measures to prevent corrupt practices among staff.

Other solutions to address corruption in construction projects and infrastructure development include:

• Engaging Certified Professionals: Ensuring construction projects are handled by certified professionals to curb corruption.
• Transparency and Accountability: Promoting transparency and accountability in contract administration to prevent corrupt practices.
• Whistleblower Protection: Protecting whistleblowers to encourage reporting of corrupt activities.

The Senate Committee on Local Content of the 10th Senate can learn from the experiences of the 8th and 9th Senates, including:

• Collaboration and Stakeholder Engagement: The NCDMB’s retreat with the Senate Committee on Local Content demonstrates the importance of collaboration in driving local content development.
• Capacity Building and Training: The Board’s training programs have been instrumental in developing competent manpower for the industry.

Recommendations
To enhance local content development and drive development in the Niger Delta region, the Senate Committee on Local Content should:

• Increase Funding for Local Contractors: Establish a financing scheme to support local contractors in accessing funds for contracts awarded by oil and gas companies.
• Invest in Infrastructure Development: Allocate resources to develop critical infrastructure in the Niger Delta region, such as roads, bridges, and educational facilities.
• Strengthen Collaboration with NCDMB: Foster closer collaboration with the NCDMB to leverage their expertise and experience in promoting local content development.

By implementing these recommendations, the Senate Committee on Local Content can build on the successes of the NCDMB and drive meaningful development in the Niger Delta region.

Local Content Development in Nigeria’s Oil and Gas Industry: A DEVCOMM Perspective

The Nigerian oil and gas industry is undergoing a significant transformation, driven by the government’s efforts to increase local content development. The Senate Committee on Local Content and the Nigerian Content Development and Monitoring Board (NCDMB) are working together to promote the growth of local businesses, create jobs, and stimulate economic growth.

Community-Driven Approach
The local content development initiative is designed to benefit the entire country, with a focus on community development and participation. The program aims to:

• Empower Local Communities: By increasing local participation in the oil and gas industry, the initiative seeks to empower communities and promote economic growth.
• Develop Competent Manpower: The NCDMB’s training programs are designed to develop skilled workers for the industry, creating a pool of competent manpower.

Recent Achievements
The local content development initiative has made significant progress, with notable achievements including:

• Nigerian Content Level: Reached 56% in 2024, with a target of 70% by 2027.
• Local Contractor Funding: A N15 billion Community Contractor Fund has been established to support local contractors.
• Capacity Building: The NCDMB’s training programs are developing competent manpower for the industry.

Collaboration and Implementation
The Senate Committee and NCDMB are working together to simplify processes, develop competent manpower, and monitor compliance. This collaborative approach aims to:

• Streamline Approval Timelines: Enable business delivery and promote economic growth.
• Upgrade Education: Develop skilled workers for the industry by upgrading the quality of schools in the hinterlands.
• Ensure Compliance: Monitor operating and service companies to ensure adherence to the provisions of the NOGICD Act.

Benefits for Nigeria
The local content development initiative is expected to have a positive impact on the entire country, including:

• Economic Diversification: Reduce dependence on oil and gas, promoting economic diversification.
• Increased Local Participation: Encourage local businesses to participate in the oil and gas industry.
• Improved Infrastructure: Develop critical infrastructure in the Niger Delta region and beyond.