NCDMB unveils ‘Back to the Creeks’ initiative to boost local content in oil-producing communities

By Temi Olowu

The Nigerian Content Development and Monitoring Board (NCDMB) has announced plans to launch a new initiative called “Back to the Creeks,” aimed at deepening local content engagement in oil-producing communities and other regions across Nigeria.

Speaking at a media breakfast meeting in Lagos, the Executive Secretary of the NCDMB, Felix Omatsola Ogbe explained that the policy would drive the impact of local content implementation directly to communities involved in oil production.

He credited recent improvements in Nigeria’s oil and gas sector, including the elimination of middlemen and reduced contracting cycles, to the Presidential Directives on Local Content Operations issued by President Bola Tinubu in March 2024.

Ogbe dismissed claims that local content implementation increases the cost of crude oil production, stating that the main cost drivers are operational downtimes and community-related disruptions.

He further pointed out that security expenses and activities of unregistered contractors also contribute to high production costs.

On the NCDMB’s broader strategies, Ogbe stated that the board is creating an enabling environment for international oil companies (IOCs) to make final investment decisions on new projects.

The NCDMB is also formulating policies to support indigenous oil and gas service companies.

In response to questions about the local insurance sector, Ogbe promised to revive the insurance services guidelines, originally signed with the National Insurance Commission (NAICOM) in June 2022, to ensure that the oil and gas industry patronizes local insurance providers.

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He emphasized the importance of public communication and stakeholder support in the success of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act and the 10-year strategic roadmap for local content.

Ogbe confirmed that the board is fully compliant with the Presidential Directives on Local Content Compliance and Petroleum Sector Contracting Costs.

These directives are designed to attract new investments, accelerate project development, and stimulate economic growth in Nigeria. He also highlighted how the NCDMB has streamlined project approval processes, further enhancing efficiency.

The breakfast meeting, organized to formally introduce Ogbe to media executives, saw senior NCDMB officials in attendance, including the Director of Corporate Services and Capacity Building, Ama Ikuru, who urged the media to promote positive narratives about Nigeria to attract investments.

The Director of Monitoring and Evaluation, Abdulmalik Halilu provided an update on the Nigerian Content Intervention Fund (NCI Fund), which he rated at over 90% success, noting high accessibility and repayment rates by borrowers.

Halilu also disclosed that the NCDMB is reviewing the underperforming Community Contractors Fund and is expected to announce a revamped model soon.

Director of Projects Certification and Authorization, Abayomi Bamidele highlighted the surge in project approvals, particularly those related to gas investments, following the implementation of the Presidential Directive on Tax Incentives for the oil and gas sector.

The NCDMB’s leadership reaffirmed its commitment to fostering media collaboration and increasing transparency in its operations, furthering its mission of strengthening Nigeria’s oil and gas industry through local content initiatives.