The Nigerian Content Development and Monitoring Board (NCDMB) has announced plans to begin a joint industry-wide capacity audit of indigenous manufacturers and service providers operating in Nigeria’s oil and gas sector, in a move aimed at strengthening local content, improving procurement efficiency and supporting future energy investments.
The audit, which will be conducted under a newly developed Harmonisation Framework, will involve the modification of existing industry certification portals to enable a unified assessment and grading system for indigenous companies.
Speaking at the 25th Nigeria Oil and Gas (NOG) Energy Week Conference and Exhibition 2026 in Abuja, Executive Secretary of the NCDMB, Felix Ogbe, said the initiative was jointly developed with key industry regulators and stakeholders to create a comprehensive database of local capabilities across the energy value chain.
The collaborating institutions include the Nigerian Petroleum Exchange (NipeX), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Nigerian National Petroleum Company (NNPC) Limited and the Oil Producers Trade Section (OPTS).
Delivering a keynote address titled “Shaping the Next Phase of Local Content Growth,” Ogbe said the audit would provide a clearer picture of Nigeria’s industrial capabilities while helping to streamline contracting processes.
“The outcome of the in-country capacity audit will provide a detailed understanding of existing capabilities, eliminate intermediaries, improve contracting cycle timelines and ensure direct patronage of established service providers for business sustainability and growth,” he said.
According to him, the findings will also guide government agencies and industry players in making informed decisions on investment priorities, technology partnerships, financing support and policy interventions.
Ogbe explained that the capacity audit forms part of a broader industry harmonisation initiative designed to standardise the grading and classification of Nigerian manufacturers and service providers.
He noted that Nigeria’s local content performance has improved significantly over the past 15 years, with indigenous participation in the oil and gas industry rising from less than five per cent to 61 per cent.
“Today, Nigerians own strategic assets, provide critical services, execute major projects and contribute meaningfully across the oil and gas value chain,” he said.
Despite this progress, he stressed that a comprehensive assessment of existing capacities had become necessary to prepare indigenous companies for the next wave of large-scale energy investments, including the country’s planned deepwater developments.
Ogbe disclosed that the Harmonisation Framework introduces a five-class grading system for service providers, designed to recognise companies at different stages of development.
He said the framework specifically creates opportunities for emerging businesses through Class 4 (Emerging Players) and Class 5 (Essential Vendors), which will serve as the foundation for an expanded vendor development programme.
Under the initiative, the NCDMB plans to identify high-potential indigenous firms, assess their manufacturing readiness, facilitate technical partnerships, improve access to financing and connect qualified companies with guaranteed market opportunities.
The objective, he explained, is to help service providers evolve into manufacturers and original equipment manufacturers (OEMs), thereby expanding Nigeria’s industrial base and reducing dependence on imported goods and services.
Beyond the capacity audit, the NCDMB said it is implementing several reforms aimed at improving the ease of doing business within the Nigerian oil and gas industry.
Ogbe revealed that the Board has released new Nigerian Content Equipment Certificate (NCEC) Application Guidance Notes to simplify approval processes and reduce administrative bottlenecks.
He added that an escalation email channel has also been introduced to address delays in application processing, while service-level agreement timelines for project certifications have continued to improve.
According to him, the faster approval processes have supported a growing pipeline of major oil and gas projects over the past year.
As part of efforts to build local capacity, the NCDMB has also expanded its Field Readiness Training Programme, focusing on the ten most in-demand technical skill areas required by the industry.
Ogbe disclosed that approximately 20,000 Nigerians have already registered for the programme and are awaiting selection tests in their chosen fields.
He said the initiative is designed to ensure that qualified Nigerian professionals are prepared to take advantage of employment opportunities expected from upcoming oil and gas investments.
While describing the achievement of 61 per cent local content as a major milestone, Ogbe emphasised that Nigeria’s next phase of local content development must prioritise industrialisation rather than participation alone.
“This next phase of local content growth must go beyond participation and compliance. It must focus on capacity expansion, industrialisation, manufacturing, sustainability and global competitiveness,” he said.
He noted that although Nigeria’s energy sector has the potential to support a vibrant manufacturing ecosystem, many indigenous manufacturers continue to operate below capacity because of limited market access, technology gaps and financing constraints.
According to him, addressing these challenges will require stronger collaboration among regulators, operators, financial institutions, manufacturers and service providers, making the joint industry capacity audit a critical step towards building a globally competitive Nigerian energy supply chain.