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Nigeria’s oil, gas local content reach 61% in 15 years

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The Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Felix Ogbe, an engineer, yesterday revealed that in the last 15 years, local participation in the country’s oil and gas sector recorded a significant rise from less than five per cent to 61 per cent.

He made this known yesterday while delivering his speech at the 25th Edition of the Nigeria Oil and Gas Energy Week currently ongoing in Abuja. He spoke on the theme: “Shaping the Next Phase of Local Content Growth.”

The NCDMB boss attributed the increase to the signing of the NOGICD Act of 2010, describing it as accounting for the success.

 

To sustain this increase, Ogbe said, the next phase must focus on manufacturing, competence and global competitiveness, if the country is to achieve its target of becoming a $1 trillion economy.
“Over the last 15 years, Nigeria’s local content journey has become a remarkable success story,” Ogbe declared, adding that, “Through the implementation of the NOGICD Act of 2010, we have transformed local participation in the oil and gas industry from marginal levels of less than five per cent to 61 per cent a situation where Nigerians now own assets, provide services, execute projects, and contribute significantly across the oil and gas value chain.”

Although he expressed satisfaction with the feat, Ogbe nonetheless said the next phase of the board’s strategy is to move beyond mere compliance metrics toward deep-rooted industrialisation and global competitiveness.
“These achievements deserve to be celebrated. However, they also compel us to ask a fundamental question: What comes next? The next phase of local content growth must go beyond participation and compliance. It must focus on capacity expansion, industrialization, manufacturing, sustainability and global competitiveness,” the NCDMB boss said.

 

To ensure a sustenance of this achievement and further upscaling, he disclosed that the NCDMB, following in line with Presidential Directives, has partnered with NIPEX, NUPRC, NMDPRA, NNPC, and the Oil Producers Trade Section (OPTS) to create a harmonised ranking system.

To this end, the Board will commence modification of its various certification portals in readiness for the joint industry capacity audits of in-country manufacturers and service providers operating within the oil and gas industry.

The audit, he added, will begin in the third quarter 2026.
“The outcome of the in-country capacity audit will provide a detailed understanding of existing capabilities, eliminate intermediaries, improve contracting cycle timelines, and ensure direct patronage of established service providers for business sustainability and growth.
“The findings from the exercise will also enable the Board and industry stakeholders to make informed decisions regarding investment priorities, technology partnerships, financing support, and policy interventions,” Ogbe added.

 

The Board, he revealed, also maintained a zero tolerance against operators failing to remit their statutory fees into the Nigerian Content Development Fund (NCDF)- a fund meant for building domestic capability. To ensure full compliance, possessing an NCDF Compliance Certificate will now be major criteria for doing business.

 

“It is therefore unacceptable for any company to withhold, delay, or fail to remit its statutory contributions to the Nigerian Content Development Fund (NCDF). The Board will continue to strengthen its compliance and enforcement mechanisms and will not hesitate to invoke all available regulatory measures to ensure compliance, because possession of a valid NCDF Compliance Certificate is increasingly becoming an important requirement for participation in industry opportunities and regulatory engagements,” Ogbe added.

 

Energy

Fed govt. rolls out one million CNG vehicles, intensifies CNG as cheaper transport alternative

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‎‎By Oluwayanmife  Lucas

‎The Federal Government has pledged to intensify efforts to promote compressed natural gas (CNG) as a cheaper alternative fuel for transportation, with a renewed focus on accelerating the rollout of one million CNG-powered vehicles across the country.

‎‎To this end, the Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, has tasked the leadership of the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV) and the Decade of Gas (DoGas) Secretariat to focus on critical interventions, step up investments, expand CNG infrastructure and strengthen programmes to drive nationwide adoption.
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Ekpo gave the directive over the weekend in Abuja while receiving progress updates from the two bodies, stressing the need to translate the Federal Government’s Auto CNG policy into tangible benefits for Nigerians in form of cheaper transport fares.

‎‎He said the drive had become imperative following the removal of petrol subsidy and the need to provide Nigerians with a more affordable and environmentally friendly alternative for transportation, in line with the aspirations of President Bola Tinubu.

‎‎The Minister noted that Nigeria’s abundant natural gas resources presented an opportunity to lower transportation costs, deepen domestic gas utilisation and stimulate economic growth. He emphasised the need for sustained investments in refuelling infrastructure, vehicle conversions and other critical components required to accelerate CNG adoption.

‎‎Ekpo commended the leadership of Pi-CNG & EV for the progress recorded under its current management and assured the initiative of the government’s continued support in achieving its objectives, including the expansion of CNG use across the country.
‎‎He also highlighted the importance of growing domestic gas consumption, noting that supply had risen above two billion cubic feet per day for the first time in Nigeria history.
‎‎“Nigeria is a gas nation with a gas reserves index of over 80 years, and that is why we are talking about the Decade(s) of Gas.

‎‎“It is important that we listen to the directive of Mr. President to make transportation cheaper via CNG. We will continue to give you all the backing, to provide the necessary assistance to make sure we drive this project to a logical conclusion,” he said.

‎‎In his remarks, the Executive Chairman/CEO of Pi-CNG & EV, Ismaeel Ahmed, said the initiative would step up investments and programmes to expand CNG infrastructure and increase vehicle conversions nationwide and lead to chepaer ttansport fares for millions of Nigerians.

‎‎Ahmed explained that the joint industry market study completed by the decade of gas secretariat provides a framework for accelerating rollout, tracking progress, identifying gaps and strengthening implementation efforts to accelerate the adoption of CNG as a transportation fuel.

‎‎Similarly, the Coordinator of the Decade of Gas Secretariat, Mr. Ed Ubong, described CNG as a key component of Nigeria’s energy transition and assured continued support for the presidential initiative and efforts to increase domestic and export gas utilisation across the country for the benefits of Nigerians as well as investors.

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NNPC profit after tax soars 54.5% to N431b in August

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· Revenue hits N3.74tr

By Oluwayanmife Lucas

The Nigerian National Petroleum Company (NNPC) Limited has announced a N431 billion Profit After Tax (PAT) for the month of August 2026. The figure shows a rise of 54.5 per cent from the N279 billion recorded in the previous month.

This was contained in the Company’s monthly operations and financial report for the month of August 2026.

Revenue for the period, according to the report, stood at N3.74 trillion as against N3.09 trillion recorded in the previous month.

The Company also recorded a 19.89 per cent increase in cumulative statutory payments from N7.91trillion for January to July to N9.49 trillion for January to August.

The report also put the average crude oil and gas production figures for the period at 1.69 million barrels per day and 7,680 million standard cubic feet per day, respectively.

On the state of infrastructure, there was 100per cent availability of upstream pipelines, while the OB3 and AKK Gas Pipelines stood at 100 per cent and 95 per cent completion.

 

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Dangote Refinery posts $22.5b revenue, records $4.7b profit

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· Cash reserves hit $6.7b

By Oluwayanmife  Lucas

Dangote Petroleum Refinery and Petrochemicals has recorded a remarkable turnaround in its financial performance, posting $22.5 billion in revenue and $4.7 billion in net profit for the nine months ended September 30, 2026, compared with a loss of $117.2 million in the corresponding period of 2025, as the African industrial giant consolidates its transition into a major profit-generating industrial enterprise.

The unaudited financial results, released in Lagos yesterday, reveal that revenue surged by 144 per cent from $9.2 billion in the first nine months of 2025, while earnings before interest, taxes, depreciation and amortisation (EBITDA) jumped nearly nine fold to $5.5 billion, reflecting higher refining throughput, improved operational reliability and stronger refining margins.

The performance represents a significant financial milestone for the 700,000 barrels per day refinery, which is currently undertaking a landmark Initial Public Offering (IPO) aimed at broadening African ownership of the industrial complex. The most striking development is the refinery’s transformation from a loss-making operation into a highly profitable enterprise, accompanied by a substantial strengthening of its balance sheet.

According to the results, net income rose to $4.73 billion from a loss of $117.2 million a year earlier, while EBITDA margin expanded to 24.56 per cent from 6.83 per cent, reflecting a marked improvement in the economics of its refining operations. Operating cash flow also increased more than tenfold to $3.68 billion, compared with $364.7 million in the corresponding period of 2025, demonstrating the refinery’s growing capacity to generate cash from its core business. The company’s cash balances climbed to $6.69 billion from $809.5 million, while its balance sheet moved from a net debt position of $1.73 billion in September 2025 to net cash of $650.8 million by September 2026. The transition to a net cash position is particularly significant, indicating that the refinery’s cash holdings now exceed its reported debt obligations on a net basis, a development that strengthens its financial flexibility as it pursues further expansion.

The results also point to accelerating financial performance during the third quarter of 2026. Revenue increased from $13.91 billion at the end of June to $22.48 billion by September, implying third-quarter revenue of approximately $8.57 billion.

Similarly, EBITDA rose from $2.60 billion in the first half of the year to $5.52 billion at the end of September, indicating that the refinery generated approximately $2.92 billion in EBITDA during the third quarter alone. Net profit also increased from $1.82 billion at the half-year mark to $4.73 billion by September, representing an additional $2.90 billion in the three months to September. These figures underscore the pace at which the refinery’s commercial operations have expanded following its commissioning and initial production ramp-up.

Managing Director and Chief Executive Officer of Dangote Petroleum Refinery and Petrochemicals, David Bird, attributed the strong results to higher throughput, greater operational stability and improved refining margins.

“Our third-quarter performance demonstrates the successful transition from commissioning and ramp-up activities to sustainable commercial operations,” Bird said. “Revenue increased to $22.5 billion from $9.2 billion in the corresponding period of 2025, while EBITDA rose to US$5.5 billion from $627.6 million, reflecting higher throughput, improved operational reliability and stronger gross refining margins.”

Bird said the results validated the strength of the refinery’s integrated business model and provided a solid foundation for the company’s next phase of growth.

“These results reflect the strength of our integrated business model and provide a solid foundation as we progress through our IPO and execute our Vision 2030 growth strategy,” he stated. “With our expansion programme already underway, we remain focused on increasing refining capacity and broadening our product portfolio. We will continue to strengthen our distribution network across Africa and support energy security across the continent, while creating long-term value for stakeholders,” he said.

The financial performance comes at a defining moment for Dangote Petroleum Refinery, whose IPO is seeking to bring a broader cross-section of Africans into the ownership of one of the continent’s most significant industrial investments. The company recently secured approval from the Securities and Exchange Commission to extend the closing date of the offer from October 13 to October 27, 2026, to accommodate growing investor interest across Africa and facilitate wider cross-border participation. The IPO comprises 4.1 billion ordinary shares at ₦525 per share, representing an offering valued at approximately ₦2.15 trillion.

The President/Chief Executive of Dangote Industries Limited, Aliko Dangote, had disclosed that subscriptions to the offer had already exceeded the company’s original fundraising target, stressing that the overriding objective was to enable more Africans to participate in the refinery’s ownership rather than merely raise additional capital. The latest financial results provide an important perspective on that proposition, demonstrating the earnings capacity, cash generation and financial strength of the enterprise as it seeks to attract a wider shareholder base. Beyond the immediate IPO, the results also have implications for the Group’s Vision 2030 industrial expansion programme, which includes increasing refining capacity, expanding petrochemical production and strengthening distribution networks across African markets.

Located in the Lekki Free Zone, Lagos, Dangote Petroleum Refinery and Petrochemicals operates an integrated refining and petrochemical complex with a crude distillation capacity of 700,000 barrels per day. The facility, built to international environmental, safety and product quality standards, is among the world’s most modern large-scale refining complexes and represents a major investment in Africa’s energy and industrial infrastructure.

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