Nigerian Oil and Gas Industry Content Development Act

An Act mandates the use of Nigerian resources and services in oil and gas operations to build local capacity. It targets oil companies, contractors, and training institutions. This promotes economic growth by retaining value in Nigeria.

What Is This Policy?

The principal legislation mandating increased use of Nigerian human and material resources, services, and goods in all oil and gas operations in Nigeria, with the aim of building local capacity and retaining more value from the petroleum sector within the country.

Who Does It Target?

All operators, contractors, subcontractors, and alliance partners in oil and gas Nigerian companies seeking to participate in the oil and gas value chain Training and research institutions serving the petroleum industry NCDMB as the implementing and enforcement body

What Does It Aim to Achieve?

Ensure that Nigerians and Nigerian companies play a central role in the oil and gas industry by setting mandatory local content levels for employment, procurement, fabrication, and services.

Key Features

Mandatory Local Content Levels: Specific minimum percentages of Nigerian content for different categories of goods and services First Consideration for Nigerians: Nigerian companies must be given priority in contract awards where they demonstrate capacity Schedule of Items: Detailed schedule listing products and services with their required minimum local content percentages Nigerian Content Development Fund: 1% of all oil and gas contract values contributed to fund capacity-building programmes Penalties: Fines and contract cancellation for non-compliance with local content provisions

Current Status

Rollout Stage: Fully operational Coverage: All oil and gas operations including exploration, development, production, transportation, and decommissioning Lead Agency: Nigerian Content Development and Monitoring Board (NCDMB) Enforcement: NCDMB reviews and approves all oil and gas contracts for local content compliance

How to Access

All oil and gas operators must comply with the Act through the NCDMB. Submit Nigerian Content Plans for all projects Register Nigerian companies on the NOGIC-JQS platform Report on local content achievements periodically

Official Resources

Website: ncdmb.gov.ng Contact: NCDMB Headquarters, Yenagoa, Bayelsa State

Legal Framework

Enacted under Section 4 of the 1999 Constitution. Operates alongside the Petroleum Industry Act 2021, the Nigerian Investment Promotion Commission Act 1995, the Companies Income Tax Act 2004, the Companies and Allied Matters Act 2020, and the International Labour Organization local content guidelines. Draws on the ECOWAS Protocol on Energy.