PRESIDENTIAL DIRECTIVE ON LOCAL CONTENT

What Is This Policy?

The Presidential Directive on Local Content Compliance Requirements 2024 is a presidential instrument issued under Section 100 of the NOGICD Act 2010, reforming how the Nigerian Content Development and Monitoring Board (NCDMB) evaluates and approves Nigerian Content Plans (NCPs), ensuring that local content regulations genuinely build indigenous capacity rather than enabling unqualified intermediaries to access contracts.

Who Does It Target?

Nigerian oil and gas industry operators: IOCs, indigenous producers, and midstream companies that are required to submit Nigerian Content Plans (NCPs) Indigenous contractors, service companies, and suppliers seeking to be included in approved NCPs NCDMB staff responsible for reviewing, approving, and monitoring NCP compliance at the bid and execution stages Foreign contractors and engineering firms participating in Nigerian oil and gas projects who must demonstrate genuine local content partnerships

What Does It Aim to Achieve?

Ensure that approved NCPs include only contractors with genuine, substantial, and verifiable technical and financial capacity to independently execute project activities in Nigeria Eliminate NCP abuse by rejecting plans that rely on unqualified intermediary companies that act as fronts without real operational capacity Require NCDMB to acknowledge genuine in-country capacity gaps and allow qualified foreign participation where Nigerian capacity is insufficient, without penalising investors Make Nigeria's local content framework commercially competitive and investment-friendly while maintaining the integrity of indigenous capacity building

Key Features

Capacity Verification Mandate: NCDMB must develop formal guidelines for assessing and verifying the technical and financial capacity of Nigerian contractor companies before they are approved in NCPs No Intermediaries Rule: NCPs that rely on entities acting solely as intermediaries, with no demonstrable capacity to execute the specified activities, will not be approved; only companies with real operational capability qualify Capacity Gap Recognition: NCDMB is directed to recognise when Nigerian in-country capacity is insufficient or inefficient for specific specialised services and to approve qualified foreign participation in such cases without penalising the operator's local content rating Bid-Stage Enforcement: Nigerian content compliance is now assessed at the bid stage, not retrospectively, reducing the risk of projects proceeding with inadequate local content commitments 10-Year Roadmap Alignment: The Directive is fully aligned with NCDMB's 10-Year Strategic Roadmap (2021 to 2030) which targets increasing Nigerian content to 70% of industry expenditure by 2027 Nigeria First Integration: The Directive feeds into the Renewed Hope Nigeria First Policy (May 2025), which extends local-first procurement principles across all federal MDAs and sectors beyond oil and gas

Current Status

Rollout Stage: Active; NCDMB has published implementation procedures and bid-stage review frameworks; capacity verification guidelines under development in consultation with PETAN and industry Implementing Body: Nigerian Content Development and Monitoring Board (NCDMB); supervised by the Federal Ministry of Petroleum Resources Achievement Level: Nigerian content in the oil and gas sector reached approximately 61% by Q3 2025 against a 70% target by 2027; NCDMB commissioned two major baseline studies to map verified Nigerian service provider capacity Enforcement: NCDMB can reject NCPs that do not comply with the Directive; operators with rejected NCPs must resubmit with qualifying contractors before project award

How to Access

Operators: Download NCDMB's revised NCP template and capacity verification checklist from ncdmb.gov.ng; engage NCDMB's Projects Certification Division for pre-bid local content planning discussions Nigerian Contractors: Register with NCDMB's Contractor Capacity Database; ensure your company has documented evidence of past project execution, equipment, staff, and financial standing before NCP inclusion Foreign Contractors: Apply for NCDMB's foreign participation waivers where specialised services are not available in Nigeria; provide a detailed Nigerian capacity building plan as part of your submission Contact: NCDMB: ncdmb.gov.ng | NCDMB House, Plot 24, Samuel Ambrose Street, Oniru, Victoria Island, Lagos | +234 (0)1 280 4640

Official Resources

Website: ncdmb.gov.ng Contact: NCDMB Headquarters, NCDMB House, Plot 24, Samuel Ambrose Street, Oniru, Victoria Island, Lagos | [email protected] Policy Summary | Source: NCDMB, Aluko and Oyebode, TheCable Nigeria, NUPRC, AllAfrica, Proshare | March 2026

Legal Framework

Issued as a presidential directive under the executive authority of Section 5 of the 1999 Constitution (as amended) and Section 100 of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act 2010. The Nigerian Content Development and Monitoring Board (NCDMB) operates under the NOGICD Act, and compliance obligations align with the Petroleum Industry Act 2021 and the Public Procurement Act 2007.