Presidential Directive on Local Content Compliance Requirements, 2024 (“Local Content Directive”)

The President of the Federal Republic of Nigeria and Minister of Petroleum Resources issued the Local Content Directive in order to prevail on the Nigerian Content Monitoring and Development Board (“NCDMB”) to ensure that its implementation of the Local Content Act: (a) considers the practical challenges of insufficient in-country capacity for certain services; and (b) does not hinder investments or competitiveness in the oil and gas projects in Nigeria.

Specifically, the Local Content Directive seeks to plug leakages in the industry, as it expressly empowers the NCDMB to reject a Nigerian Content Plan (“NCP”) that has an intermediary entity that lacks the essential capacity to perform the services stated in the NCP. Additionally, any NCP approved by the NCDMB must show genuine and demonstrable capacity of the company to execute the relevant project or activity within Nigeria.

Finally, the Local Content Directive empowers the NCDMB to develop guidelines for accessing and verifying the capacity of companies seeking contracts for specific activities under the Local Content Act.