NCDMB Moves To Eliminate Middlemen, Unveils Joint Audit of Oil, Gas Contractors
By Sunday Etuka
The Nigerian Content Development and Monitoring Board (NCDMB) has announced sweeping reforms aimed at eliminating intermediaries in Nigeria’s oil and gas industry through a nationwide joint capacity verification exercise and a harmonised contractor grading system.
The Executive Secretary of NCDMB, Engr. Felix Ogbe, said the initiative would ensure that only companies with proven technical and operational capacity secure contracts, while genuine Nigerian manufacturers and service providers gain direct access to opportunities in the sector.
He made the disclosure while delivering the keynote address to flag off the the 2026 Nigeria Oil and Gas (NOG)Energy week themed: ‘Advancing Energy Ambitions for Competitive & Resilient Economies’ on Monday in Abuja,
Represented by the Board’s Director of Capacity Building, Engr. Abayomi Bamidele, he explained that the new framework was jointly developed with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), NipeX, Petroleum Technology Association of Nigeria (PETAN), Oil Producers Trade Section (OPTS) and other industry stakeholders in line with the Presidential Directive on Local Content Compliance.
According.to him, the exercise would introduce a harmonised five-class grading system for contractors, replacing the different classification models currently operated by various industry regulators.
He said: “Currently, a company can be graded differently by NCDMB and NipeX. With this harmonisation, everyone will work with one classification system, ensuring consistency across the industry.”
Ogbe explained that the Board would begin a nationwide joint capacity audit in the third quarter to physically verify facilities and capabilities of service providers rather than relying on documents or claims submitted online.
According to him, the exercise would expose companies without genuine operational capacity and eliminate middlemen who secure contracts only to subcontract them to firms with actual facilities.
“It is painful when a company that owns the assets and manufacturing facilities ends up becoming a subcontractor to someone who merely won the contract without the required capacity. This initiative is designed to correct that.”
Ogbe added that the audit would also provide government and investors with accurate information on existing industrial capacity, enabling better investment decisions and helping identify areas requiring further development.
The Executive Secretary said the reforms were critical as Nigeria prepares for several major deep-water oil projects expected to significantly increase industry activities.
“We must know whether local companies have the capacity to execute these projects. Where the capacity exists, Nigerians should benefit. Where gaps remain, we will know exactly where intervention is required.”
Ogbe stressed that the Board remained committed to achieving its target of 70 per cent Nigerian content but noted that the next phase of implementation must move beyond compliance to capacity expansion.
He observed that although Nigeria’s local content performance had grown from less than five per cent to about 61 per cent since the enactment of the Nigerian Oil and Gas Industry Content Development Act, many local manufacturers still operate below capacity because of limited market opportunities, technology gaps and financing challenges.
“Capacity expansion can only happen when businesses are assured of patronage. There is no point establishing manufacturing facilities if there is no offtake.”
The Board also announced several initiatives to improve ease of doing business, including new guidelines for obtaining the Nigerian Content Equipment Certificate (NCEC), an online escalation platform for complaints, the registration of Nigerian Content Training Providers and a compliance certificate for the Nigerian Content Development Fund (NCDF).
Ogbe however warned companies against defaulting on statutory NCDF contributions, saying compliance would increasingly determine access to regulatory services.
He further disclosed that more than 20,000 Nigerians had already registered under the Board’s Field Readiness Training Programme, with digital skills emerging as the most sought-after area of training.
Speaking earlier, Portfolio and Country Director of DMG Nigeria Events, Wemimo Oyelana, said Nigeria’s local content policy had evolved into a global reference point after increasing indigenous participation in the oil and gas industry from below five per cent to over 61 per cent.
She urged stakeholders to move beyond fabrication and assembly into technology development, research and innovation.
“We must continue investing in the domestication of technology, moving beyond assembly and fabrication towards genuine research, design and innovation.”
She also challenged industry players to see local content not merely as a compliance obligation but as “a national and continental imperative” capable of driving sustainable economic growth.
