The formation of a continental forum known as the African Local Content Organisation (ALCO), in Namibia, recently underscored the significance of capacity building in the oil and gas sector which in the continent of Africa was initiated and driven by Nigeria.
Though the ALCO, was announced in Namibia but the initiative and its formal inauguration was spearheaded by Nigeria.
The ALCO is designed to provide opportunity for active collaboration among themselves to deliver complex projects, creating and retaining value in the multibillion dollar African energy sector and growing the economy.
The organisation was unveiled on Wednesday, Day 2 of the 2025 Namibia Oil and Gas Conference, at Windhoek, Namibia. Membership is open to national associations of service providers in the oil and gas and mining sectors across the African continent.
Chairman of the Petroleum Technology Association of Nigeria (PETAN) and member of Nigerian Content Development and Monitoring Board (NCDMB) Governing Council, Mr. Wole Ogunsanya introduced the organisation and explained that the body would serve as the private sector arm of the African Petroleum Producers’ Organisation, (APPO), which comprises African governments engaged in oil and gas operations.
He underscored the pivotal and complimentary roles the private sector plays in building African local content, particularly in the development of competent human capacities, deployment of technologies and equipment, mobilisation of private capital, and execution of projects.
He said the organisation would be launched officially at the 2026 African Union (AU) conference, in view of its strategic importance to continent’s economy.
Key to the group’s plan is to institute close partnership with APPO and the African Energy Bank (AEB).
The Bank was recently set up by APPO to fund big ticket energy projects across the continent and bridge the funding gap impeding the development of key energy projects.
Members of the group, Ogunsanya said, are well positioned to execute key scopes of the projects that would be financed by the Energy Bank. This would guarantee value and spend retention in the continent, helping to catalyse the economy.
Other key objectives of the forum include facilitating exchange of knowledge and capacities among African energy service companies, enabling collaboration on projects, and growing Africa’s gross domestic product (GDP).
The PETAN chair added, “Through the forum we can carry out benchmark studies, join forces to solve industry problems.”
It is also a forum where African energy service companies can link up and find partners across the continent. It would enable the exchange of equipment and partnership on major industry projects.
As Namibia or any other African country develops energy projects, you can count on your African brothers to share our over 70 years knowledge and experience in the oil and gas industry.”
All 14 African countries have already joined the Organization, he said, including Nigeria, Morocco, Senegal, Angola, Democratic Republic of Congo. The PETAN chairman is serving as the interim chair of the African Local Content Organisation, while Ibrahim Talla from Senegal is the Secretary,
The new Organization has received endorsement from the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Felix Omatsola Ogbe, who described it a key platform for advancing African local content.
Represented at the Namibian event by the director, Corporate Services, Dr. Abdulmalik Halilu, the NCDMB boss referenced the vital roles the Board played in the establishment of the African Energy Bank, assuring that it would continue to promote African local content and extend every possible assistance to the ALCO.
The coming together by African oil producers to create a joint project to drive local content revolution in the continent no doubt was spurred by the significant rise in Nigeria’s local content gains that has created competent oil and gas services providers.
Why African Nations Confer With Nigeria On Local Content
Nigeria is certainly the biggest market in the oil and gas industry in Africa.
Government has also demonstrated the desire to increase local industries participation in the sector through enhancing their competitiveness and increasing their capacity.
The NCDMB, which drives the initiative on behalf of the Government has exemplified how local industries can be upgraded to provide services and create jobs and support economic growth.
The Board no doubt has achieved significant milestones in promoting local content within Nigeria’s oil and gas industry.
These achievements include increased asset ownership by Nigerians, development of world-class facilities, and a rise in the number of Nigerian companies participating in the sector. The NCDMB’s efforts have also led to the adoption of Nigerian local content policies by other African nations, positioning Nigeria as a regional leader.
The NCDMB has facilitated a substantial increase in Nigerian ownership of oil and gas assets, particularly in rigs and marine vessels. Before 2010, Nigerians owned less than 5 per cent of these assets, but by 2020, this figure had risen to 40 per cent.
This was partly driven by Boards Marine Vessel Categorization Initiative which prioritised ownership.
The NCDMB has fostered greater participation of Nigerian companies in the oil and gas industry. Indigenous producers now account for over half of the nation’s oil and gas output, notes the Independent Petroleum Producers Group (IPPG). This has enabled them to target significant production targets, such as 1.3 million barrels per day of oil and 4.5 billion cubic feet of gas by 2027.
Nigeria’s local content policies, particularly the NOGICD Act, have served as a blueprint for other African nations, with over 16 countries adopting similar laws.
The NCDMB’s Nigerian Content Development Fund (NCDF) has been instrumental in supporting local firms. Over $330 million has been loaned to 70 oil and gas companies through the Bank of Industry (BOI).
Providing Leadership Through Committed Implementation Process
The Board has actively supported local industry growth making Nigeria a reference point when it comes to local content development.
One of the most significant gains is the increase in local expenditure, which rose from less than 5 per cent in 2010 to 26 per cent by 2017, with a target of 70 per cent by 2027.
This growth reflects enhanced indigenous participation across the oil and gas value chain, from exploration to downstream activities.
There was also major gain in the area of job creation. The NCDMB has over the years facilitated over 50,000 jobs through on-the-job training and project attachments. Initiatives such as the training of 500 youths in Oyo State on solar power installation and maintenance, commended by Senator Teslim Folarin, demonstrate the Board’s commitment to human capital development beyond traditional oil and gas roles. These efforts align with the NCDMB’s mandate to link the oil and gas sector to other industries, fostering economic diversification and sustainable growth.
Infrastructure development has also been a cornerstone of the NCDMB’s impact. The Board’s support has led to the establishment of world-class facilities, including two pipe mills with a combined capacity of 670,000 tons per year and five pipe coating yards. Additionally, vessel ownership by Nigerians has risen to nearly 40 per cent as of 2020, enhancing local control over marine operations. These achievements, celebrated at the awards, highlight the NCDMB’s role in building in-country capacities that position Nigeria as a competitive player in the global energy market.
The NCDMB’s Nigerian Content Development Fund (NCDF), funded by a 1 per cent deduction from upstream contracts, has been instrumental in these gains. The fund has supported local firms’ growth, research and development, and technology incubation, with over $330 million loaned to 70 oil and gas companies through the Bank of Industry.
Challenging Nations To Support Local Capacity Building
The Nigerian Content Development and Monitoring Board (NCDMB) is also challenging oil producing countries in Africa to prioritise manufacturing ecosystem as deliberate steps to create skills that will support transformation of the oil and gas industry.
By doing so they would help local industries develop competencies that will in turn expand their local content strategies.
The Board’s Executive Secretary, Engr. Felix Omatsola Ogbe, gave the advice at the opening day of the 2025 Namibia Oil and Gas Conference, which began on Tuesday at Windhoek, Namibia.
Ogbe, who was represented by the director, Corporate Services, Dr. Abdulmalik Halilu, while dwelling on strategies that would support the growth of African local content, urged oil-producing countries to specialise in different manufacturing and service areas of the oil and gas industry and develop their competencies to the right specifications.
This he said will enable the countries to trade among themselves and contribute towards the manufacturing of complex oil and gas equipment.
He cited an example with the Boeing aircraft, which has critical components produced by different original equipment manufacturers (OEMs) and assembled at a designated factory. Such a model, he noted, will ensure that each African country develops a competitive advantage and can contribute effectively to the African oil and gas industry.
The executive secretary said that by offering local content nuggets, which include that local content implementation is not a sprint but a marathon and must be executed as a business and not as corporate social responsibility.
Local content must also be cost effective and local peculiarities must be given key considerations, he noted.
Other recommendations include that local content regulations must apply to all players in the industry and not only foreign companies or expatriates and the implementation takes time, consistency, and coordination.
He equally suggested that capacity building initiatives should include grassroots and underserved communities, adding that local content practice would not grow if new projects are not developed.
He assured the audience that Nigeria is ready to partner with Namibia and other African nations to build an energy sector that empower the African people and drive shared prosperity.
Ogbe, said local content value proposition for Africa include research and technology development, local employment, strategic partnerships, ownership and control of assets, value chain optimisation, sustainable operations, increase production and utilization of locally made goods and contribution to gross domestic product (GDP).
He identified government’s role in supplier development as regulatory, developmental and promotional.
Using Nigeria as a case study, Halilu listed key achievements of NCDMB to include the establishment of world class fabrication and construction yards, human capital development, manufacturing initiative, service sector growth, financial support and establishment of integration capability for floating production and storage and offloading facility (FPSO).
On the new wave of local content development in Nigeria, he pointed to the promotion of equipment assembly and components manufacturing, development of small and medium enterprises, enforcement of research and development and technology transfer as well as prioritization of gas based industrialisation.
The opening day also featured a presentation by NCDMB’s General Manager Human Capacity Development, Esueme Dan Kikile, Esq.
He further shared the Board’s success stories in human capital development.
Nigeria’s local content successes in the oil and gas industry was a constant reference point in discussions at the opening day of the Conference.
