Oil & Gas
NOGICD Act Was Not Weakened by Presidential Orders On Oil Sector-NCDMB
By David Owei, Yenagoa.
The three Executive Orders issued by President Bola Ahmed Tinubu on the Oil and Gas Industry in March 2024 did not erode the relevance of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act on the operations of the oil and gas industry, the Nigerian Content Development and Monitoring Board (NCDMB) has said.
This was one of key messages from the Local Content Masterclass and panel discussion, held on Monday at the African Energy Week, which started in Cape Town, South Africa. Discussions at the panel highlighted Nigeria’s local content’s milestones and processes, provided local lessons for other African oil and gas producing countries, clarified misconceptions, as well as positioned Nigeria’s oil and gas industry for investment.
The panellists included the Director Capacity Building, Engr. Abayomi Bamidele, General Manager Monitoring and Evaluation, Mr. Silas Omomehin Ajimijaye, and General Manager, Nigerian Content Development Fund (NCDF), Ms. Fateemah Mohammed, and the session was moderated by the General Manager Corporate Communications, NCDMB, Dr. Obinna Ezeobi.
Giving insight into the Presidential Directives, Engr. Bamidele observed that some oil and gas stakeholders grossly misinterpreted the Presidential Directives to mean that the NOGICD Act had been relegated or sidestepped and they no longer need to comply with the provisions of the law. “The Special Adviser to the President on Energy had to clarify that the Presidential Directives did not set aside local content. They only mandated that existing capacities must be patronized and middlemen must be excluded from the contracting process.”
The three Executive Orders are the Presidential Directive on Local Content Compliance, Presidential Directive on Reduction of Petroleum Sector Contracting Cost and Timelines and Presidential Directive on Oil and Gas Companies (Tax Incentives, Exemption, Remission, etc.
Bamidele confirmed that NCDMB had streamlined its contracting strategies to align with the Presidential Directives, collapsed its touchpoints in the contract approval process from 9 to 5, thereby contributing to the shortening the industry’s contracting cycle, reduction of the cost of projects and catalysing new oil and gas projects from operating oil and gas companies.
He announced that qualified international service companies can now be awarded the Nigerian Content Equipment Certificates (NCEC), to facilitate their direct participation in deepwater operations in the Nigerian oil and gas industry, as provided in the NOGICD Act. This policy will attract investments into the sector, and is consistent with the Presidential Directives, he explained.
On Board’s strategy for capacity development for new oil and gas projects, he said plans are afoot to conduct trainings in skill areas that are in a high demand in the sector. He underlined the need to always streamline capacity building initiatives with requirements and changing dynamics in the industry.
The Board is also committed to developing critical infrastructure such as the Brass Island Shipyard with support of the NLNG, as well as completing and operationalizing the Nigerian Oil and Gas Parks at Odukpani, Cross River State and Emeyal-1 in Bayelsa State, he hinted.
Counselling sister Africa countries, Engr. Bamidele noted that local content and capacity building strategies must be country-specific, and policy makers must understand the mindset and skillsets of their nationals. He further advised that local content policies and capacity building models must be relevant and applicable to the host country’s technological, educational and manpower capacities.
While making his comments, the General Manager Monitoring and Evaluation, Mr. Silas Omomehin Ajimijaye outlined the robust mechanism the Board deploys in monitoring companies’ execution of oil and gas projects, ensuring compliance with the provisions of the NOGICD Act, and retaining significant value in the economy.
On the impact of divestment of oil and gas assets on Nigerian content compliance, he stated that the transfer of assets to indigenous operators had not impacted negatively on compliance. This is because the Board sustained the compliance protocols it had established with the previous owners. However, the Board, is ready to support successor companies to navigate challenges they might have with compliance, he added.
Speaking further Ajimijaye highlighted the importance of robust research and development initiatives to achieving sustainable local content development. He indicated that NCDMB had developed an R&D roadmap and collaborates regularly with operating companies, service firms, the academia, and other relevant institutions.
Currently, NCDMB has established six centers of excellence in key universities across six zones of the country, while Research and Development Fund has been deployed to support commercialization of viable projects, with 15 research ideas and inventions currently supported to ensure their successful development, he added.
In her contributions, the General Manager, NCDF, Fateemah Mohammed explained that the Nigerian Content Intervention Fund is a dedicated finance scheme that provides single digit financing to Nigerian service companies, enabling them to grow capacities and play key roles in the oil and gas industry.
Giving insight into the seven products of the NCI Fund, she dwelt on the Community Contractors Fund, which is a N50bn finance scheme designed for contractors in local communities, whereby they can assess up to N100 million, at single digit to execute contracts in the oil and gas industry and grow the local economy. Another unique product is the US$20m Women in Oil and Gas Intervention Fund managed by Nigeria-Export-Import Bank, for deepening the capacities and capabilities of women entrepreneurs and industrialists to fully participate in the Nigerian oil and gas industry.
Recommending similar funding schemes to other African countries, Mohammed disclosed NCDMB’s aspiration to grow the NCI Fund and collaborate with other financial institutions to unlock larger projects and enhance skills development of the populace.
Oil & Gas
Nigeria loses $226bn Revenue Since Suspension of Oil Production in Ogoniland, Says PINL •Advocates community-led, environmentally grounded approach
By Our Correspondent
Pipeline Infrastructure Nigeria Limited (PINL), the surveillance firm in charge of the Trans-Niger Pipeline (TNP), has disclosed that Nigeria has lost an estimated $226.734 billion in revenue from the suspension of crude oil production across 96 wells in Ogoniland over the past 32 years.
PINL made the disclosure at its April monthly stakeholders’ meeting in Port Harcourt, Rivers State on Wednesday, describing the resumption of oil operations in the region as a strategic national priority, but stressed that the process must be anchored on community participation, environmental sustainability, and transparency.
Ogoniland, covered under Oil Mining Lease (OML) 11, holds the potential to produce over 500,000 barrels of crude oil per day. Operations were halted in 1993 in the area following widespread unrest and environmental concerns linked to decades of exploration activities.
Dr. Akpos Mezeh, General Manager, Community and Stakeholder Relations at PINL, said the scale of accumulated losses demands urgent attention.
“Available data shows that over $226.734 billion has been lost due to the suspension of crude oil production from 96 oil wells in Ogoniland over the past 32 years. This clearly underscores both the economic cost of inaction and the immense opportunity that lies ahead,” he said.
PINL outlined four conditions it considers essential to a successful resumption: host communities must be involved as critical stakeholders across all phases of the process; environmental clean-up and restoration efforts already underway must be sustained; a community-based security framework drawing on PINL’s pipeline surveillance model across the Niger Delta should be adopted; and economic inclusion must be prioritised, with residents benefiting directly through employment, contracts, and capacity development.
Mezeh said the company’s stance reflects wider sentiment across the region. “The position of PINL aligns with growing calls from stakeholders in the Niger Delta for the Federal Government to restart oil production in Ogoniland in a manner that balances economic benefits with environmental justice and community interests,” he said.
PINL affirmed it’s readiness to contribute directly to the effort. “At PINL, we stand ready to support this process by applying our experience in stakeholder engagement and infrastructure protection to ensure a peaceful, secure, and sustainable resumption,” Mezeh added.
According to him, observers note that any successful resumption will depend on rebuilding trust among stakeholders, resolving environmental grievances, and ensuring host communities have a central role in decision-making.
PINL maintained that, with the right approach, restarting production in Ogoniland could significantly boost Nigeria’s output, increase national revenue, and contribute to broader economic growth.
Oil & Gas
NASS Petroleum C’tees reject petition against Pipeline surveillance contract …pass vote of confidence on Tantita, others
By Our Correspondent
National Assembly joint Committees on Petroleum Resources has dismissed three petitions against the pipeline surveillance contract, while passing a vote of confidence on Tantita Security Service, the security agents and the NNPCL for helping to restore the nation’s oil production.
Oil production, according to available records to the panel stood at about 1.8 million barrels per day as at April, an increase from the about nine hundred thousand liters per day in 2022 when the surveillance contract was awarded.
The resolution followed a motion moved by the Chairman of the House Committee on Petroleum Resources, Midstream, Henry Okojie at a one day parliamentary roundtable on the state of pipeline security and the battle against crude oil theft on Wednesday.
Okojie said that Tantita and the security agencies have recorded lots of achievements in securing the nation’s petroleum assets, thereby increasing oil revenue for the country.
Speaking at the roundtable, Speaker of the House of the apex legislature,Rt Hon Abbas Tajudeen said despite the ongoing tensions in the Middle East and the protracted conflict involving Russia and Ukraine, the need for valiant efforts at finding alternative energy sources has become necessary, adding that crude oil still remains the largest source of primary energy in the world, especially the transport sector where it still powers 95 percent of all vehicles, planes and ships.
The Speaker said the current crises, particularly with the closure of the Strait of Hormuz, has resulted in price surges and supply shortages, with consequential impact on the nation’s economic survival, saying “as a nation, we must rise to the challenge, and this roundtable is a clear indication that the National Assembly is ready to lead the way.
He said further that in order to understand why the surveillance contract became necessary, “we must remember that Nigeria’s journey as an oil-producing nation has been a very challenging one.
“The discovery of petroleum has both earned us massive foreign exchange and resulted in environmental degradation and despair. As a result, the Niger Delta has witnessed profound agitations over the years which often resulted in pipeline vandalism, crude oil theft, and illegal refining activities.
“Desperate communities and weak enforcement structures created a climate of instability in the oil sector with staggering consequences.
“At some point, Nigeria was losing billions of dollars annually as between 10 to 30 percent of crude oil production was lost to theft, undermining national revenue and questioning our capacity to remain a reliable oil producer.
“It was within this context that the Federal Government introduced the pipeline surveillance contract, including the engagement of private security actors and community-based structures.
“These interventions were designed to provide security to our oil facilities, with the understanding that without the help of the communities where these pipelines and other infrastructure were located, the job of securing them would be impossible.
“In the end, the synergy of private surveillance providers, our security agencies, and community engagement, led to remarkable improvements in our daily production quotas.”
The number four citizen of Nigeria said further that there has been clear undeniable and compelling success stories, saying “recent reports indicate that most of the illegal tapping points have been dismantled, production levels have improved significantly and oil receipts are approaching near-total delivery to export terminals, compared to the alarming losses of previous years when production sometimes plummeted to about 700 barrels per day.
“Today, largely due to these surveillance/security efforts, we have been able to ramp up production to about 1.8 million barrel per day. Importantly, the surveillance contract has been able to create direct employment for thousands of Niger Delta youths who were formerly agitators, providing a legitimate
alternative to crime, and placing security back in the hands of the people who host the facilities.
“There is no doubt that we can do better. There are still a number of challenges, particularly as they concern accountability, transparency, and the effectiveness of certain surveillance frameworks.
“Recent public discourse suggests that crude oil theft still occurs at concerning levels, sometimes even under existing security arrangements. This underscores the need for continuous oversight and reform”.
He said the National Assembly has remained at the forefront of confronting the challenges in the oil sector and has through legislation, oversight, and appropriation taken deliberate steps to strengthen Nigeria’s response to threats to our oil industry.
He said “we have enacted and reviewed laws such as the Petroleum Production and Distribution (Anti-Sabotage) Act and other relevant statutes aimed at deterring-pipeline vandalism while emplacing stringent penalties.
“We have also worked to strengthen institutions like the National Oil Spill Detection and Response Agency (NOSDRA), recognizing the need for improved monitoring and environmental accountability.
“Both are the fruits of comprehensive and deliberate policy actions that were enabled by the passing of the landmark Petroleum Industry Act (PIA). Some of the provisions of this act, like the Host Community Development Trust, made Corporate Social Responsibility a legal mandate and gave host communities a direct financial stake in the profitability of the oil sector.
“Moreover, by legislating that communities forfeit their entitlement for the year if vandalism occurs in their domain, the law operationalized the concept of “shared responsibility.” Communities now police their own areas, knowing that an attack on a pipeline becomes an attack on their trust fund.
“The 10th National Assembly has continued to take bold legislative steps to institutionalize the gains of the PIA. From maintaining a rigorous oversight of the Act to ensure steady implementation, to our recent investigative hearings on oil theft, we are closing the legal loopholes that once allowed criminals to thrive.
‘Furthermore, this Assembly has exercised its constitutional mandate by probing aspects of the surveillance contract, approving critical funding for pipeline security, and insisting that crude oil theft be treated not just as an economic crime, but as a national security threat requiring coordinated action across agencies.
“In summary, we have consistently emphasized that curbing crude oil theft must be a collective responsibility, involving government, host communities, security agencies, and private operators alike.”
The Speaker said the event was an opportunity to advance the fortunes of the oil industry by consolidating on the gains made so far from the surveillance contract, while addressing existing gaps, while also
reassessing the current pipeline surveillance architecture, strengthen transparency and accountability mechanisms, deepen community engagement as critical stakeholders in protecting national assets, and align legislative frameworks with emerging realities in the oil and gas sector, particularly under the circumstances the world has now found itself.
He said “let us remember that the story of Nigeria’s oil industry is not only one of challenges, but also of resilience and possibility. Let us build a system where pipelines are no longer targets, but symbols of shared prosperity; where host communities are not marginalized, but empowered partners; and where Nigeria’s oil wealth translates into sustainable national development.
“The Middle East is in turmoil, Russia is distracted, and global energy maps are being redrawn. The world is looking for energy security, and Nigeria must put itself out there as a credible alternative. We cannot afford the luxury of internal sabotage. Our message to the world is clear: Nigeria is securing its assets, stabilizing its output, and is open for business.”
Oil & Gas
SECURING NIGERIA’S OIL LIFELINE: Third phase Amnesty Leaders Endorse Continuation of Tantita,s surveillance contact, Oppose Decentralisation
By David Owei,Bayelsa
Leaders of the Third Phase of the Presidential Amnesty Programme have strongly endorsed the retention of the pipeline surveillance contract awarded to Tantita Security Services Nigeria Limited (TSSNL), owned by High Chief Government Oweizide Ekpemupolo, popularly known as Tompolo. They have urged President Bola Ahmed Tinubu to resist calls for the contract’s termination or fragmentation, describing such moves as detrimental to the hard-won peace and security in the Niger Delta region.
In a statement issued by National Chairman Gen. Elaye Slaboh (T.D. Dollars) and the national executive, the group warned that any disruption to Tantita’s mandate would jeopardise recent gains in combating crude oil theft, illegal bunkering, and pipeline vandalism. They emphasised that no other individual or entity possesses the local influence, community trust, and operational expertise required to effectively safeguard Nigeria’s critical oil infrastructure.
“Those agitating for the cancellation or decentralisation of the contract are enemies of the fragile peace we have achieved in the Niger Delta,” the leaders declared. They cautioned that reversing the current arrangement could trigger a resurgence of economic sabotage, leading to a sharp decline in crude oil production and significant revenue losses for the national economy.
The amnesty leaders alleged that the campaign against Tantita is largely orchestrated by oil thieves, pipeline vandals, and other vested interests intent on undermining progress in the fight against oil theft. They further claimed that political opponents of the Tinubu administration are exploiting the issue to sabotage the Renewed Hope Agenda, particularly in the lead-up to the 2027 general elections, while seeking to distract from Tompolo’s grassroots mobilisation efforts in support of the President’s re-election bid.
Gen. Slabor highlighted Tantita’s innovative operational model, which combines robust pipeline protection with extensive community engagement and sustainable development initiatives. This holistic approach, he noted, is unprecedented in the Niger Delta and has been instrumental in fostering long-term regional stability and economic recovery.
Rather than fragmenting the surveillance framework, the group advised the Federal Government to focus on reviewing and revoking oil wells operated by non-indigenes of the Niger Delta, with a view to reallocating them to genuine local stakeholders. Such a policy, they argued, would promote authentic indigenous participation, strengthen community ownership, and contribute to more sustainable national oil security.
This position from Third Phase Amnesty Programme leaders underscores the strategic importance of a unified, effective surveillance mechanism in protecting Nigeria’s economic lifeline while advancing inclusive development in the oil-producing region. The Federal Government is expected to weigh these perspectives carefully as it reviews arrangements for safeguarding petroleum assets.
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