The Nigerian Content Development and Monitoring Board (NCDMB) has announced efforts to accelerate the approval of five oil and gas projects, aimed at increasing crude oil production and national revenue.
The Executive Secretary of NCDMB, Felix Ogbe, disclosed that the board had applied presidential directives to fast-track the approval of these projects, which are expected to yield one billion standard cubic feet of gas per day and 350,000 barrels of crude oil daily. Ogbe made these remarks at the African Energy Week held in Cape Town, South Africa.
In a statement released by the board, Ogbe explained the importance of timely approval of business proposals, highlighting its role in driving the oil and gas sector forward.
Commenting on sustainable local content development across African nations, he stated, “Local content has to be promoted as a national agenda and supported by all institutions, businesses, decision-makers, investors, and citizens.”
To enhance Nigeria’s crude oil production, Ogbe proposed an annual “Final Investment Decision (FID) Week” dedicated to signing off on new oil and gas projects. He explained that a final investment decision marks the critical approval point where project owners greenlight development and release funding.
According to Ogbe, incorporating an FID Week into existing international oil and gas conferences could encourage both Indigenous and international companies to expedite their processes to meet deadlines. He revealed that the proposal has already been presented to the Special Adviser on Energy to the President, Mrs. Olu Verheijen, as well as the leadership of the Nigerian National Petroleum Company Limited and other stakeholders.
Represented at the African Energy Week by the Director of the Projects Certification and Authorization Division, Abayomi Bamidele, Ogbe addressed concerns about the insufficient number of FIDs signed in recent years. He described these as “worrisome” developments contributing to Nigeria’s declining crude oil production and its adverse impact on national revenue.
Ogbe argued that the industry needs at least one or two major FIDs signed annually to catalyse growth in the local service sector, stimulate the economy, and increase crude oil and gas output.
He further reiterated the board’s commitment to implementing the three presidential directives issued by President Bola Tinubu in March. These directives focus on expediting the contracting cycle, eliminating unqualified middlemen from the value chain, ensuring local content compliance, reducing petroleum sector contracting costs and timelines, and addressing tax-related incentives and exemptions for oil and gas companies.
“NCDMB has fully complied with the directives,” Ogbe stated, affirming the board’s dedication to fostering efficiency and transparency in the oil and gas industry.
