Oil contracts: NCDMB issues new rules to flush out unqualified firms
The Nigerian Content Development and Monitoring Board has introduced new guidelines aimed at eliminating unqualified firms from oil and gas contracts in Nigeria.
The Nigerian Content Development and Monitoring Board (NCDMB) has released new guidelines set to take effect in December 2025. These guidelines aim to address the issues of middlemen and firms deemed unqualified in the oil and gas contracting process. By implementing these measures, the NCDMB seeks to streamline the contracting framework and reduce costs associated with oil production in Nigeria. This initiative aligns with the Presidential Directives on Local Content Requirements, which aim to enforce the importance of local capacity in the industry.
A key document issued by the NCDMB is the Nigerian Content Equipment Certificate Application Guidance Notes. This document serves as a blueprint for companies wishing to participate in oil and gas contracts, mandating that only firms with demonstrable technical capacity can engage in the contracting value chain. This strategic move by the NCDMB reflects a broader effort to enhance efficiency within Nigeria's oil and gas sector while curbing potential abuses of the Nigerian Content Equipment Certificates.
The NCDMB's emphasis on local content requirements signifies a commitment to bolster the domestic oil and gas industry by ensuring that contracts benefit qualified Nigerian firms. By tackling the problem of unqualified intermediaries, the board aims to improve overall industry performance and drive down costs, thereby maximizing the economic impact of Nigeria's vast oil resources on its economy. These changes are poised to reshape the contracting landscape and enhance the sustainability of the sector over the long term.