By Ndako Ibrahim
One of the major challenge facing us as a country is how do we increase the oil and gas sector contribution to our GDP; in other words, how do we increase the number of Nigerians who are earning their living from this very important endowment. According to Nigeria Extractive Industry Transparency Initiative (NEITI) 2022 oil and gas audit, about 29,000 Nigerians directly work in the industry. When you include those indirectly involved with the industry, it takes the figure to about 100,000 Nigerians. The most recent report from NEITI put the percentage of Nigerians involved in the extractive industry at 0.01%.
Nigeria’s oil and gas industry remains a major component of the national economy. Beyond its contribution to government revenue, foreign exchange earnings, and industrial development, the industry provides employment opportunities and supports numerous businesses across the petroleum value chain. However, the long term success of the sector depends not only on the availability of petroleum resources but also on the country’s ability to develop a competent, innovative and internationally competitive workforce.
Effort to increase Nigerians participation in the oil and gas industry is not limited to increasing employment opportunities but also getting Nigerian companies, suppliers, manufacturers and service providers into the industry.
The Nigerian Content Development and Monitoring Board (NCDMB) created under the Nigerian oil and gas industry Content Development (NOGICD) act of 2010, is the organization saddled with the responsibility to drive the structural change that will increase value retention and local content in the oil and gas industry.
There is unanimity that in order to increase local content, there is need to build capacity and competence through the entire value chain of the industry. In the oil and gas industry, where operations involve sophisticated technology, complex processes and significant safety and environmental risks, the quality of human capital is particularly important. This fact is also acknowledged by the NCDMB by making competence one of its primary pillars in its framework for increasing local content.
Training and developing technical competency in areas such as engineering, fabrication, technical operations, distribution, technology, communication and know-how in project management, marine services, and logistics will enhance value retention and increase the sector contribution to the country’s GDP.
NCDMB has being doing a lot in this regard, last year alone, NCDMB carried out training for more than 10,000 graduates and technicians in high-demand oil and gas skills. The programs are to make them employable by equipping them with practical skills that contractors and operators in the industry needs.
The Board has developed a structured Human Capital Development (HCD) framework that combines direct interventions, project-based training, strategic partnerships, professional certification, practical exposure and institutional capacity development.
NCDMB has also invested heavily in developing technical manpower in areas such as engineering, instrumentation, electrical systems, mechanical engineering, automation and control, geosciences, digital skills and emerging technology, supply chain, logistics and procurement skills, vocational training and entrepreneurship and other specialized disciplines.
This year, NCDMB commenced a 12-month programme for 45 young Nigerians covering areas such as predictive artificial intelligence and machine learning, data analytics, Python programming and cyber-security. Also, in collaboration with some partners In June this year also, it commenced a 12-month human capacity development programme for young Nigerians in supply-base services.
In the area of collaboration with NCDMB is also collaborating with other stakeholders to develop human capital for the sector. One of such collaboration is the NCDMB and Renaissance Africa Energy Oil and Gas Field Readiness Training Programme, which commenced this year for 300 young Nigerians. The 12-month programme focuses on mechanical, electrical and instrumentation engineering. It consists of classroom-based training followed by nine months of on-the-job training with participating service companies in the oil and gas industry. They have also collaborated on graduate internship and pipeline engineering and corrosion control training.
Another company that deserves mentioning in helping the country meet its local human capital requirement is Aerson Technologies, who very recently in conjuncture with its partner- ABB, organized training on distribution automation for operators in the industry.
NCDMB has made considerable progress in developing indigenous capacity in the petroleum sector. Nigerian professionals now occupy important positions in engineering, geology, finance, law, procurement, project management, operations, administration and executive management.
NCDMB efforts have contributed significantly to the growth of Nigerian participation in the industry. Local companies increasingly provide services in areas such as engineering, fabrication, logistics, consultancy, maintenance, marine services and other oil and gas support activities. Local content has increased from less than 5% before the 2010 Act to 54% by 2022/23, then 56% in 2024, and 57% by February 2025 but more still need to be done.
Going forward, government agencies such as NCDMB and private industry operators should further intensify their effort. Human capital development should continue to be approached with a comprehensive strategy involving education, technical training, professional development, mentoring, leadership development, research, innovation, knowledge transfer and continuous learning.
A highly skilled Nigerian workforce will not only improve the efficiency and safety of the oil and gas industry; it will also strengthen local content, encourage technology transfer, create employment opportunities and provide the human foundation required for Nigeria’s broader industrial and energy development.
Ndako Ibrahim writes from Abuja and can be reached on ib365contact@gmail.com