Board targets middlemen, unveils new contractor grading system
Abuja: The Nigerian Content Development and Monitoring Board (NCDMB) will soon commence a nationwide joint capacity audit of oil and gas service providers as part of efforts to strengthen local content and eliminate intermediaries in the industry.
The board also announced plans to introduce a harmonised contractor grading system to ensure that only companies with proven technical capacity secure contracts.
The Executive Secretary of the NCDMB, Mr Felix Ogbe, disclosed this on Monday while delivering the keynote address at the 25th Nigeria Oil and Gas (NOG) Energy Week 2026 in Abuja.
Ogbe, represented by the board’s Director of Capacity Building, Mr Abayomi Bamidele, said the initiative would give genuine Nigerian manufacturers and service providers direct access to business opportunities.
“As agreed under the harmonisation roadmap, the next key action is to modify our various certification portals in preparation for the joint industry capacity audit of in-country manufacturers and service providers operating in the oil and gas sector.
“The audit will provide a comprehensive assessment of existing local capacity, eliminate intermediaries, shorten contracting timelines and ensure direct patronage of established service providers for sustainable business growth.
“It will also guide investment priorities, technology partnerships, financing support and policy interventions across the industry,” he said.
Ogbe said the framework was jointly developed by the NCDMB, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), NipeX, the Petroleum Technology Association of Nigeria (PETAN), the Oil Producers Trade Section (OPTS) and other industry stakeholders.
He said the initiative aligns with the Presidential Directive on Local Content Compliance.
According to him, the new framework will introduce a harmonised five-tier contractor grading system to replace the multiple classification models currently used by regulators.
He said the uniform grading system would eliminate inconsistencies in contractor classification and establish a single industry-wide standard.
Ogbe disclosed that the joint capacity audit would commence in the third quarter of the year and involve physical verification of the facilities and operational capabilities of service providers, rather than relying solely on documents submitted online.
The exercise, he said, would expose firms without genuine operational capacity and eliminate middlemen who obtain contracts only to subcontract them to companies with the required expertise and facilities.
“It will also provide government and investors with reliable data on available industrial capacity, support investment decisions and identify areas requiring further development,” he said.
Ogbe said the reforms had become imperative as Nigeria prepares for major deep-water oil and gas projects expected to increase activities across the petroleum sector.
He said the board must determine the readiness of indigenous firms to execute the projects and identify areas where intervention would be required to bridge capacity gaps.
He reaffirmed the NCDMB’s commitment to achieving 70 per cent Nigerian content, adding that the next phase would focus on expanding indigenous capacity beyond regulatory compliance.
Earlier, the Portfolio and Country Director of DMG Nigeria Events, Mrs Wemimo Oyelana, described Nigeria’s local content policy as a global model.
She said the policy had increased indigenous participation in the oil and gas industry from less than five per cent to more than 61 per cent.
Oyelana urged stakeholders to move beyond fabrication and assembly into technology development, research and innovation, stressing that local content should serve as a catalyst for sustainable economic growth rather than merely a compliance requirement.
