Nigerian Content Policy Commitment (anchored on the Nigerian Oil and Gas Industry Content Development Act 2010)

What Is This Policy?

The Nigerian Content Policy Commitment refers to the suite of policies and regulations implementing the Nigerian Oil and Gas Industry Content Development Act 2010, which mandates that Nigerian companies, labour, goods, and services must be given first consideration in all activities of the oil and gas industry, shifting wealth from petroleum operations into the domestic economy.

Who Does It Target?

International oil companies (IOCs): Shell, TotalEnergies, ExxonMobil, Chevron, Eni, and others operating in Nigeria Nigerian companies and entrepreneurs seeking to participate in the oil and gas supply chain as contractors, vendors, and service providers Nigerian professionals: engineers, geologists, accountants, legal practitioners, and others in the petroleum sector Financial institutions providing project finance, insurance, and bonding to oil sector contractors

What Does It Aim to Achieve?

Grow Nigerian Content to 70% of all goods and services used in the oil and gas industry by value by 2027 Develop Nigeria's industrial capacity to design, fabricate, and maintain oil and gas equipment domestically Retain petroleum industry earnings within Nigeria through domestic procurement, employment, and financial services Build a pool of internationally competitive Nigerian engineering, fabrication, and subsea construction companies

Key Features

First Consideration Rule: All operators must give first and exclusive consideration to Nigerian goods, services, and professionals before procuring from abroad Nigerian Content Plan (NCP): All contracts above $1 million must include a Board-approved Nigerian Content Plan specifying how local participation will be achieved Technology Transfer: Operators required to implement technology transfer programmes and Nigerian staff development plans for all technical disciplines NCDMB Monitoring: The Nigerian Content Development and Monitoring Board (NCDMB) audits compliance, certifies vendors, and enforces the Nigerian Content Fund levy Joint Venture Framework: Procurement rules encourage joint ventures between IOCs and Nigerian companies to build domestic capacity in deepwater, subsea, and FPSO operations Nigerian Content Consultative Forum: Annual industry gathering to review progress, set targets, and identify barriers to achieving content benchmarks

Current Status

In force, actively implementing the Nigerian Oil and Gas Industry Content Development Act 2010, with ongoing efforts to meet targets like 70% Nigerian content by 2027.

Legal Framework

Nigerian Oil and Gas Industry Content Development Act 2010; Petroleum Industry Act 2021; Nigerian Content Development and Monitoring Board (NCDMB) Regulations; NUPRC Guidelines