When Simbi Wabote took leadership of the Nigerian Content Development and Monitoring Board (NCDMB) in 2016, local participation in Nigeria’s oil and gas industry hovered around 26%. By the time he departed in December 2023, that figure had reached 54% — more than doubling domestic value retention in just seven years.
This marathon approach to transforming Nigeria’s oil and gas sector centered around a meticulously designed 10-year roadmap targeting 70% Nigerian content by 2027, demonstrating NCDMB’s commitment to systematic, long-term industry development.
The Industry Challenge
Nigeria’s oil and gas sector confronted a fundamental business problem: most value from the country’s substantial hydrocarbon resources — estimated at 37 billion barrels of oil and 208.83 trillion cubic feet of gas — was flowing overseas rather than creating domestic prosperity.
For over 50 years, this pattern resulted in capital flight estimated at $380 billion and approximately 2 million job losses. When Simbi Wabote arrived at NCDMB, Nigerian content stood at merely 26%, despite the Nigerian Oil and Gas Industry Content Development (NOGICD) Act being in place since 2010.
Architecture of Transformation
Wabote constructed his roadmap around five interconnected pillars, each addressing distinct aspects of industry development.
Technical Capability Development formed the first pillar, focusing on extending domestic manufacturing capacity. This materialized through the Nigerian Oil and Gas Parks Scheme (NOGAPS), with industrial parks established across seven states. These facilities provided manufacturing infrastructure including shop floors, warehouses, training centers, and residential facilities.
Compliance and Enforcement established mechanisms to monitor implementation. This included expatriate quota management, which tracked applications and approvals to ensure knowledge transfer to Nigerian workers. Between 2016 and 2023, NCDMB systematically reduced expatriate approvals as local capacity developed.
Enabling Business Environment focused on streamlining regulatory processes. NCDMB’s ranking in the Presidential Enabling Business Environment Council rose from 27th position in 2019 to first place by 2022.
Organizational Capability transformed NCDMB’s internal operations. The completion of the 17-story Nigerian Content Tower headquarters created a modern work environment, complemented by structured learning programs for staff.
Sectorial and Regional Market Linkage expanded opportunities beyond Nigeria’s borders. NCDMB hosted delegations from across Africa, sharing implementation experiences and establishing frameworks for regional integration.
Financial Innovation
Wabote introduced financial innovations to overcome barriers to local participation in Nigeria’s oil and gas industry.
The Nigerian Content Intervention Fund stood at the center of this approach. Growing to $500 million during Wabote’s tenure, this fund provided manufacturers, service providers, and other industry participants with access to capital at 8% interest with five-year repayment terms — dramatically below commercial rates in Nigeria.
By September 2023, 70 companies had received funding totaling N39.889 billion and $324.263 million, achieving a repayment rate of 98% — significantly outperforming typical Nigerian loan programs with 50-60% default rates.
Data-Driven Management
Wabote implemented systematic data collection and analysis throughout NCDMB operations. Performance metrics tracked both overall Nigerian content percentages and activity in specific industry segments.
Data from 2016-2022 showed highest spending in fabrication (37%) and procurement (31%), which also represented areas with the lowest Nigerian content levels (29% each). This targeted measurement allowed precisely focused interventions in underperforming sectors.
This data-driven approach guided the steady improvement in overall metrics: 26% in 2018, 30% in 2019, 34% in 2020, 42% in 2021, and 54% by 2023, demonstrating consistent movement toward the 70% target.
Commercial Partnerships
A distinctive feature of Wabote’s implementation approach involved equity partnerships across the hydrocarbon value chain. These commercial ventures created immediate job opportunities while building domestic capacity in previously import-dependent sectors.
Notable examples included a 30% equity investment in Waltersmith’s 5,000 barrels per day modular refinery in Imo State, which became operational in November 2020, and partnerships in gas processing facilities, LPG storage terminals, and manufacturing operations.
In total, NCDMB established 25 partnership projects across 16 states during Wabote’s tenure, creating substantial employment opportunities while increasing domestic energy security.
The Future Landscape
As Felix Omatsola Ogbe succeeded Wabote in December 2023, he inherited both the achievements and ongoing challenges of Nigerian content development in a changing global energy landscape.
Nigeria’s substantial gas reserves present significant opportunities for continued local content development, particularly as global markets increasingly prioritize cleaner energy sources.
For policymakers across resource-rich developing nations, Wabote’s systematic approach demonstrates how structured planning can translate natural resource endowments into sustainable economic development, potentially serving as a model for similar economies seeking to maximize domestic value retention.
While challenges remain, the comprehensive foundation established during Wabote’s tenure provides his successor with operational frameworks and ongoing projects spanning modular refineries, gas processing, manufacturing facilities, and human capacity development initiatives that will continue shaping Nigeria’s oil and gas industry in coming years.