Energy
NCDMB Proffers Guideposts For Sustainable Local Content Practice In Africa
On the heels of remarkable discovery and exploration of oil and gas resources across several countries in Africa, the Nigerian Content Development and Monitoring Board (NCDMB) on Wednesday proffered strategies that would enable those nations to institute sustainable Local Content practices, achieve in-country value addition, and benefit maximally from the exploitation of their hydrocarbon resources.
The Executive Secretary NCDMB, Engr. Simbi Kesiye Wabote offered the suggestions at the two-day Namibia Oil and Gas Conference holding in Windhoek, Namibia. He hinted that Africa currently accounts for about 12% of annual global oil production, but only consumes less than 4% of the global production, describing the situation as potential opportunities in production, processing and utilization of oil and gas within the continent for improvement in the standard of living.
Speaking as the preeminent local content advocate in Africa, the NCDMB boss gave an overview of key parameters that are critical to in-country value addition and growth of the sector on a sustainable basis. These are Regulatory Framework, Gap Analysis, Capacity Building, Funding and Incentives, Research and Development, and Access to Market.
Director Corporate Services NCDMB, Mr. Patrick Obah; Executive Secretary NCDMB, Engr. Simbi Kesiye Wabote and Director Legal Services, Mr. Umar Babangida at the two-day Namibia Oil and Gas Conference held in Windhoek, Namibia.
Citing the example of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, 2010, he said: “An enabling regulatory framework backed with the appropriate legislation is very fundamental in local content practice,” and that it is “better than directives or policies that are subject to speculations or compliance on ‘best endeavour’ basis. According to him, once such a statute is in place “It is no longer optional or debatable whether to comply with local content requirements.”
Among lessons under the regulatory environment parameter he said, “The law must promote and enable investments rather than become a stumbling block to existing or new investors both locally and internationally,” and that “Provisions should be made in the law to address any lacuna without having to review the entire law such as the provision in the NOGICD Act for utilization of Ministerial Regulations to address any gaps or opportunities.”
Besides, he noted, a regulator “must be pragmatic in applying the law as the oil and gas industry is very dynamic such that aspirational goals and prevailing realities are not always on the same trajectory.”
On Gap Analysis, the NCDMB boss said, “Baseline and periodic gap analyses are essential to determine gaps that are needed to be closed in the areas of skills, facilities and infrastructure.” Lessons learnt so far in that regard show that “All gaps cannot be closed overnight even if you have the resources to do it,” and that it would be necessary to “prioritize areas of high impact and deploy prudent implementation measures.”
Structured capacity building intervention, according to him, “is essential to spur the development of in-country capacities and capabilities,” but implementation of major projects is a prerequisite. In his words, “Continuous and well sequenced stream of major projects is important to sustain utilization of established capacities and attract additional investments for growth.”
Funding and Incentives, he emphasized, are essential to implement local content programs, develop infrastructure, attract new investments, and keep existing businesses afloat where required.” He cited the Nigerian Content Development Fund (NCDF) provided for in the NOGICD Act, which has so far been deployed in the launch of the $350 million Nigerian Content Intervention Fund, the ongoing development of the Nigerian Oil and Gas Parks Scheme (NOGAPS), and construction of the 17-storey corporate headquarters of the Board.
On Research and Development, Engr. Wabote said, “Local content thrives where there are robust Research and Development guidelines to drive development of home-grown technology,” pointing out that in Nigeria there is “a $50 million Nigerian Content Research and Development Fund to drive basic research, commercialization of research breakthroughs, establishment of Centers of Excellence, and to sponsor university endowments.”
Access to Market, the Executive Secretary observed, is very essential, noting that “The policies or laws, the capacities developed, and the research and development efforts will become frustrating if there is no outlet to utilize them and receive reward for sustainability and growth. He equally pointed to “opportunities realizable from the African Continental Free Trade Agreement (AfCFTA).
The presentation of the NCDMB boss was rounded off with an appeal that Namibia do her best “to avoid Dutch Disease syndrome in which rapid development of your oil and gas industry leads to a decline in other sectors of the Namibian economy.”
He added that “this exciting era of oil and gas discoveries and their development should not lead to decline or abandonment of…mining, fishing, agriculture and tourism sectors of the economy.”
The Conference, organised by the Economic Association of Namibia (EAN), Namibia Investment Promotion and Development Board (NIPDB) and the Hanns Seidel Foundation (HSF) in strategic partnership with the National Petroleum Corporation of Namibia (NAMCOR) ended on Thursday.
The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) has urged operators in Nigeria’s liquefied petroleum gas (LPG) industry to strengthen safety standards, improve regulatory compliance and adopt digital technologies to reduce operational losses and drive business growth.
The association said improved operational practices would help protect investments, enhance efficiency, build consumer confidence and support the sustainable expansion of C.
The call followed its 2026 webinar, themed “Downstream LPG Operational Excellence and Compliance,” which brought together industry operators, regulators and other stakeholders to discuss safety risks, market volatility, operational inefficiencies and regulatory requirements in the downstream LPG sector.
Speaking at the event, NALPGAM National President, Edu Inyang, said the industry’s long-term growth would depend on more than increased consumption and supply volumes, stressing the need to embed safety and operational efficiency in everyday business practices.
“The future of Nigeria’s LPG industry cannot be achieved by increasing volumes alone. We must grow safely, responsibly, efficiently and sustainably. Safety is not an occasional campaign; it must become a continuous industry culture,” he said.
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A major outcome of the webinar was a proposal for a NALPGAM Standard of Operational Excellence, anchored on four principles: safe and well-maintained facilities, competent and adequately trained operators, regulatory-compliant processes, and consumer protection.
Participants urged operators to integrate safety into routine operations, strengthen preventive maintenance and comply with licensing and incident-reporting requirements.
They also called for an end to unsafe practices, including unauthorised propane blending and illegal decanting, warning that such activities could expose businesses and consumers to avoidable risks.
Inyang said compliance should be viewed as a means of strengthening business performance rather than merely fulfilling regulatory obligations.
“Compliance is not merely a regulatory burden; it is a business advantage. Well-managed LPG operations reduce accidents, improve efficiency, protect investments and strengthen public confidence in our industry,” he said.
The webinar also highlighted the role of digital technologies in improving operational efficiency and accountability across the LPG value chain.
Participants identified smart filling systems, automated tank gauges, load cells, flow meters and vehicle-tracking systems as practical tools for monitoring product movements, reducing losses and improving inventory management.
Wider adoption of these technologies, they said, could help operators strengthen operational controls, minimise discrepancies and improve the reliability of LPG distribution.
The discussions come as Nigeria seeks to expand LPG consumption to approximately five million tonnes annually by 2030, a target that will require increased investment, stronger distribution networks and wider consumer access.
Stakeholders called for greater industry participation in the Decade of Gas LPG penetration programme, alongside stronger collaboration to expand access, improve cylinder traceability and promote certified local manufacturing.
The NALPGAM also urged regulators and programme coordinators to involve its members more actively in implementing LPG penetration and cylinder recirculation initiatives.
According to the association, its members’ nationwide presence and proximity to consumers could help improve the reach and effectiveness of programmes designed to increase LPG adoption.
Reiterating the association’s position, Inyang said the industry must establish clear operational standards that protect consumers while supporting efficient and sustainable business practices.
“Our aspiration is clear: every LPG facility must be safe and properly maintained, every operator competent and adequately trained, every process compliant, and every customer protected. This is the standard of operational excellence we must collectively pursue,” he said.
The NALPGAM reaffirmed its commitment to working with government agencies, regulators and industry stakeholders to develop a safer, more efficient and competitive LPG market.
The association maintained that embedding safety, strengthening compliance and deploying appropriate technologies would be critical to improving operational performance and supporting the long-term growth of Nigeria’s LPG industry.
Fears of renewed US military strikes on Iran and escalating threats to energy infrastructure across the Middle East heightened concerns about global crude supplies have pushed-up crude oil prices in the global market.
These factors pushed crude oil prices over $117 a barrel in the global market, even as oil theft and pipeline losses in Nigeria fell by 82.9 percent in five years, from 102,900 barrels per day (bpd) in 2021 to 17,600 bpd in the first seven months of 2026, amid fresh concerns about further increases in lost volumes after years of decline.
Nigeria’s oil benchmark, Brent crude, climbed by about 3.5 percent to cross $117 a barrel during trading before easing to just above $116, still up approximately 2.7 percent.
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The latest rally followed reports that Washington was considering fresh military strikes against Iran after the November 3 midterm elections, raising concerns that the conflict, now in its eighth month, could escalate further rather than move towards a diplomatic resolution.
Iran had threatened to attack oil facilities, undersea cables, data centres and artificial intelligence infrastructure across the Gulf if the United States and Israel launched a new offensive against the country.
Recall that Brent crude traded at about $72 a barrel in February, before the war began, but surged to about $126 a barrel by the end of April as the conflict intensified and concerns mounted over supply security.
Tensions rose again during the week following claims by Iran’s Islamic Revolutionary Guards Corps (IRGC) that it struck four commercial vessels in the Strait of Hormuz on Wednesday.
The US ordered some diplomats and family members of American government employees to leave Saudi Arabia, which had faced continued attacks by Houthi rebels operating from Yemen.
From January to September 2026, the domestic refineries in Nigeria received 156.52 million barrels of crude oil.
Of the volume, 125.85million barrels (80.4 percent) were sourced from in-country while 30.66 million barrels (19.6 percent) were imported.
This was contained in the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) Factsheet September 2026 released on Thursday.
The Factsheet specifically revealed that in September 2026, 38.7 million litres of the Premium Motor Spirit PMS (petrol) were received per day, crashing from the 50.5million litres per day received in August by 23 percent.
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Stock sufficiency in September was 23.9 days, declining below the 30-day threshold.
The NMDPRA stressed that while 28.7million litres were supplied per day from domestic sources, declining by 21 percent from the previous month, 10.2 million litres were imported, reducing imported petrol by 30 percent in the period under review.
According to the Factsheet, “Domestic refining contributed about 65 percent of the national petrol requirement (consumption) in September 2026, and about 74 percent of receipts, supplemented by 26 percent of imports”.
The Dangote Refinery and Petrochemicals Company (DPRP) is the only domestic refinery which currently produces petrol in Nigeria.
The report added that the DPRP produced 47.22 million litres per day of PMS in September, supplying 28.50 million litres per day to the domestic market and exporting (35.2 percent) 15.47 million litres per day.
On capacity utilization, the refinery recorded 105.98 percent of its 650,000 barrels per day capacity in the period under review.
The Factsheet disclosed that 8.7million litres of diesel were consumed in the month under review.
The NMDPRA revealed that modular refineries supplied 4.3 percent of domestic diesel consumption in September.
Aradel and OPAC, said the Factsheet, operated below optimal capacity due to feedstock challenges and maintenance shutdowns.
September diesel receipts, according to the NMDPRA, were the lowest of the 13 months, driven by low imports and low domestic evacuation amid high prices.
The Factsheet said, “Nigeria’s energy-sector transformation is progressing. Domestic refining contributed about 65 percent of the national petrol requirement (consumption) in September 2026, and about 74 percent of receipts, supplemented by 26 percent of imports.
“Priority gas projects have reached significant mileage, with the AKK pipeline at 84 percent completion as of September 2026,” the Factsheet pointed out.
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