IOC’s Assets Divestment Strategic Shift Towards Local Participation, Value Retention – NCDMB

The Nigerian Content Development and Monitoring Board(NCDMB), has described the divestment of onshore assets by the International Oil Companies (IOCs ) to indigenous companies as a bold step and strategic shift towards deeper local participation and value retention.

The board therefore urged local companies to invest heavily in the industry to take advantage of the divestment to increase their output and deepen their competitiveness.

The executive secretary of NCDMB, Felix Omatsola Ogbe said, alread, Nigeria’s local content in the oil and gas industry has reached 56 per cent, a significant rise from 5 per cent in 2010.

Ogbe stated this in his remarks at the opening of the fifth Nigerian Oil and Gas Opportunity Fair (NOGOF) in Yenagoa.

He used the opportunity to congratulate Renaissance, Seplat, Oando and all other indigenous companies on their milestone achievements, adding “We must sustain the momentum, and come together to support this local content stride in terms of procurement, capacity building, knowledge transfer, job creation and mentorship for upcoming investors.

“With opportunities like UBETA, Bonga North, Zabazaba coming onstream, great opportunities are provided for Nigerian companies to further demonstrate their capacity. I encourage the IOCs to make a conscious effort to engage local companies in line with the provisions of our laws,” he said.

Ogbe, while highlighting this milestone as a direct result of strategic policies implemented since the Nigerian Oil and Gas Industry Content Development (NOGICD) Act came into effect 15 years ago, said Nigerian companies are now actively delivering major projects across fabrication, refining, and marine sectors.

The Board also announced plans to clamp down on uncertified engineers operating in the sector, emphasising the need for professionalism and compliance with standards.

According to him, the move is part of broader efforts to strengthen human capital development and ensure that industry growth is underpinned by skilled local talent.

Ogbe emphasised that Nigeria must not only retain more value within the country but also build a globally competitive oil and gas industry.

He called for deeper participation of indigenous firms across upstream, midstream, and downstream operations, especially as international oil companies continue to divest from onshore assets.

He disclosed that the NCDMB is also working to increase funding support for local firms. In line with its commitment to innovation, he noted that NCDMB is promoting initiatives such as the NOGTECH Hackathon and encouraging stakeholders to provide early visibility into upcoming projects.

The goal, Ogbe said, is to ensure Nigerian companies are better prepared to participate and deliver.

The fair, themed ‘Driving Investment and Production Growth: Shaping a Sustainable Oil and Gas Industry through Indigenous Capacity Development,’ brings together government officials, industry leaders, and investors to discuss strategies for long-term sector growth.