The Nigerian Content Development and Monitoring Board (NCDMB) has explained that oil and gas companies operating within Nigeria’s free zones are not automatically exempt from local content requirements and other applicable federal regulations, despite the investment incentives available to them.
The Board stated that the special regulatory privileges enjoyed by businesses in designated free zones must not be interpreted as overriding the statutory responsibilities of government agencies overseeing Nigeria’s petroleum industry.
Dr. Naboth Onyesoh, NCDMB’s Director of Legal Services, made the clarification during a strategic retreat of the NCDMB/Dangote Joint Technical Committee in Lagos, where stakeholders examined ways to strengthen indigenous participation and improve regulatory coordination across the oil and gas sector.
Speaking at the retreat, themed “Beyond Compliance: Partnering for Sustainable Nigerian Content Development,” Onyesoh challenged the perception that the Oil and Gas Free Zones Authority (OGFZA) exercises exclusive regulatory authority over all business activities within designated oil and gas free zones.
He explained that although OGFZA is responsible for facilitating investments and administering incentives within the zones, its responsibilities do not automatically displace the statutory mandates of other federal regulatory institutions.
According to him, petroleum businesses operating within free zones remain subject to applicable requirements administered by the NCDMB, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), depending on the nature of their operations.
“An incentive regime is a business advantage; it is not a regulatory exception,” Onyesoh stated.
He emphasized that the Nigerian Oil and Gas Industry Content Development Act of 2010 remains central to efforts promoting indigenous participation, technology transfer, employment opportunities, and domestic value retention within the petroleum industry.
Onyesoh cautioned against narrow interpretations of free-zone regulations that could exclude companies from contributing to the development of Nigerian technical capacity and local supply chains.
He also called for stronger cooperation among regulatory agencies to clarify their respective responsibilities, eliminate unnecessary duplication, and address operational challenges affecting businesses.
According to him, regulatory coordination should focus on practical solutions that improve the ease of doing business while ensuring that Nigeria derives greater economic benefits from investments in its oil and gas sector.
The NCDMB legal director further highlighted the roles of the Central Bank of Nigeria, the Nigeria Customs Service, and immigration authorities in facilitating financial transactions, monitoring the movement of goods, and ensuring compliance with relevant regulations.
He urged OGFZA and other government institutions to strengthen information sharing and establish more effective mechanisms for resolving regulatory challenges.
The clarification comes amid broader efforts to strengthen Nigeria’s free-zone regulatory framework while maintaining an investment environment attractive to both domestic and foreign businesses.
At the retreat, Mr. Omomehin Ajimijaye, the Director of Planning, Research, and Statistics at NCDMB, also urged contractors, vendors, and service providers within the Dangote business ecosystem to comply with Nigerian content requirements.
He identified Nigerian content planning, workforce localization, local procurement, and capacity development as key obligations for participating companies.
Ajimijaye encouraged industry operators to register on the Nigerian Oil and Gas Industry Content Joint Qualification System (NOGICJQS), which supports supplier registration, prequalification, and the verification of technical capabilities.
He explained that effective implementation of Nigerian content requirements would enable more indigenous companies to secure opportunities, develop technical expertise, and participate competitively in the energy value chain.
The Board maintained that closer collaboration between regulators, investors, and service providers is essential to balancing investment incentives with Nigeria’s objectives of increasing local participation, creating employment, and retaining more economic value from petroleum operations.
