In a major push for the advancement of local capacity in Nigeria’s oil and gas sector, the Dangote Refinery and the Nigerian Content Development and Monitoring Board (NCDMB) have inaugurated a Joint Technical Committee (JTC) to drive compliance with local content standards at the world’s largest single-train refinery. This strategic collaboration reflects a renewed commitment to implement and expand local content initiatives during the operational phase of the Dangote Refinery, located at the Lekki Free Trade Zone in Lagos State.
The move comes at a crucial time for Nigeria’s energy sector and aligns with the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010. With a production capacity of 650,000 barrels per day, the Dangote Refinery represents not only a technological and economic milestone but also a critical opportunity for the country to retain value through the use of local manpower, services, and materials.
Strengthening the foundation of Nigerian-led industrialisation
The launch ceremony, attended by top executives from both organisations, was a symbolic reaffirmation of the industry’s local content aspirations. NCDMB’s Executive Secretary, Felix Omatsola Ogbe, commended the Dangote Group for its historic development of the massive refining complex. He presented Aliko Dangote, President of the Group, with the Nigerian Content Downstream Operator of the Year award, highlighting the company’s efforts to prioritise Nigerian expertise.
Ogbe underscored the importance of Nigerian ownership and operational excellence in sustaining the plant. “At an optimal daily production of 650,000 barrels, this refinery will significantly boost Nigeria’s energy security and regional supply,” he said. He also emphasized that the implementation of local content is a non-negotiable pillar of the project, calling for strict compliance with Sections 32 and 33 of the NOGICD Act, particularly concerning local employment and expatriate approvals.
Driving sustainable employment and innovation
The Dangote Refinery‘s local content strategy is set to create thousands of jobs and generate significant economic spillover. Ogbe stressed the importance of engaging qualified Nigerian professionals across technical and operational roles, noting that the partnership must contribute to President Bola Ahmed Tinubu’s Renewed Hope Agenda, which includes industrialisation and job creation.
Beyond manpower, NCDMB encouraged the Dangote Group to support its Nigerian Oil and Gas Parks Scheme (NOGaPS), which is designed to foster SMEs involved in manufacturing and R&D near oil-producing zones. “These industrial parks are vital to nurturing local supply chains, fabrication, and innovation within the oil and gas sector,” Ogbe noted.
A collaboration built on shared commitment
In his remarks, Edwin Devakumar, Group Vice President for Oil and Gas at Dangote Group, affirmed the company’s longstanding cooperation with NCDMB, especially during the construction of the refinery. “We appreciate the Board’s support. There is still more to achieve, and we remain focused on aligning with national development goals,” he said.
The newly inaugurated JTC, chaired by NCDMB’s Abdulmalik Halilu, will oversee the practical implementation of local content requirements within the refinery’s operations. This includes ensuring full compliance with the NOGICD Act and monitoring the use of Nigerian goods, services, and workforce throughout the value chain.
Crude supply and operational challenges
While the Dangote Refinery‘s local content framework gains traction, another major issue facing the refinery is crude supply. According to recent documents from the Nigerian National Petroleum Company Limited (NNPCL), the Federal Government sold crude oil valued at N219.38 billion to the refinery in the first four months of 2025.
The sales were made through nine cargoes totaling 1.9 million barrels, sourced from oil fields operated under Production Sharing Contracts. However, a dispute earlier in the year caused Dangote to halt sales of petroleum products in naira, citing a mismatch between revenue in naira and crude procurement obligations in dollars.
The naira-for-crude deal was eventually reinstated by the Federal Executive Council as a long-term national policy, but Dangote Refinery has continued to express concerns about the sufficiency of local crude allocation, resorting to crude imports from the United States to supplement its needs.
Looking ahead
The joint efforts of the Dangote Refinery and NCDMB signal a bold and strategic step towards reinforcing Nigeria’s self-reliance in the energy sector. By formalising the role of the Joint Technical Committee and integrating local content mandates into the refinery’s DNA, the collaboration lays the groundwork for a more resilient, inclusive, and economically rewarding oil and gas industry.
As the plant ramps up operations, all eyes will be on how well the Dangote Refinery’s local content objectives are translated into actionable results, from workforce development to industrial transformation, and whether this landmark partnership can set a new benchmark for other mega-projects across Africa.
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