Presidential Directive on Local Content Compliance Requirements 2024

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

The Presidential Directive on Local Content Compliance Requirements 2024 is active and being implemented.

Legal Framework

The Presidential Directive on Local Content Compliance is issued under Section 100 of the Nigerian Oil and Gas Industry Content Development Act 2010, which grants the President authority to issue directives for the Act's implementation. It operates alongside the NCDMB Regulations, the Petroleum Industry Act 2021, and the Public Procurement Act 2007. The Nigerian Content Development Fund and the Community Content framework under the PIA provide additional legal context.