On Wednesday, the Nigerian Content Development and Monitoring Board (NCDMB) formalized its commitment to enhance local content regulations in Ghana’s upstream petroleum sector by signing a Memorandum of Understanding (MoU) with the Petroleum Commission, Ghana (PCG). This event occurred during the 2024 Annual Local Content Conference and Exhibition held in Takoradi, Ghana, signaling a pivotal collaboration aimed at building a more robust local content framework within the energy sector. The MoU is set to last for three years, focusing on creating synergies through the exchange of information and skills that will be mutually beneficial to both nations as they enhance their operational capabilities in the oil and gas industry.
The Memorandum outlines the specific contributions the NCDMB will make towards the development of Ghana’s local content infrastructure. Key aspects include providing strategic advice on legal frameworks, knowledge exchange initiatives, baseline studies, capacity data collection, and the creation of strategic plans for local content implementation in Ghana. Moreover, NCDMB will assist in technical support for the formulation of regulations and policies designed to improve PCG’s local content laws. This partnership is expected not only to catalyze local content development within Ghana but also to bridge gaps in expertise through collaboration and sharing of global experiences, ultimately enhancing the overall efficiency of the upstream petroleum sector.
The signing of the MoU highlights NCDMB’s ongoing commitment to international cooperation on local content and follows a similar agreement made in February 2022 with Senegal’s National Content Monitoring Committee. This pattern of engagement underscores the NCDMB’s strategic aim to foster cooperative frameworks across Africa, enhancing local capacity and creating opportunities for shared growth within the oil and gas sector. During the conference, NCDMB’s Executive Secretary, Felix Ogbe, encouraged African oil and gas service firms to strengthen their collaborative efforts, emphasizing that leveraging unique capabilities amongst themselves would lead to sustainable growth in local content while aligning with the goals of the African Continental Free Trade Area.
Underpinning the conference theme, “Attracting E&P Investments to Boost Local Content: New Pathways,” Ogbe stressed the necessity for innovative strategies that would more effectively unlock Africa’s substantial hydrocarbon potential, estimated at over 125 billion barrels. He underscored NCDMB’s critical role in nurturing a competitive and efficient indigenous supply chain capable of delivering quality services in the oil and gas sector, highlighting the Board’s commitment to facilitating strategic investments that can bolster local economies and drive sectoral growth.
Reflecting on the significant strides made in local content development, Ogbe noted a remarkable increase from less than 5% in 2010 to 54% in 2023, attributing this growth to the Nigerian Oil and Gas Industry Content Development Act (NOGICD Act) and the astute operational strategies employed by the NCDMB and its stakeholders. Established in 2010 under this Act, NCDMB’s mandate encompasses the monitoring, guidance, development, and promotion of local content practices in Nigeria’s oil and gas sector, aiming to maximize local participation and increase the benefits derived from the nation’s oil resources.
In contrast, the Petroleum Commission, Ghana, established by the Petroleum Commission Act of 2011, serves as the regulatory body responsible for overseeing the utilization of petroleum resources and coordinating policies within Ghana’s upstream sector. This collaboration between NCDMB and PCG represents a strategic initiative aimed at enriching the local content landscape in both Nigeria and Ghana. The alignment of their goals towards enhanced local content serves not only their national interests but also strengthens regional partnerships pivotal for the advancement of Africa’s oil and gas potential. By fostering such collaborative efforts, both organizations seek to ensure that the exploitation of hydrocarbon resources ultimately benefits local communities, driving broader economic growth across the continent.
