Gbite Falade, Managing Director and CEO of Aradel Holdings has described the company as a prime example of the success of the Nigerian Oil and Gas Industry Content Development Act.
In an interview with CNBC Africa during this year’s Practical Nigerian Content Forum emphasized that Aradel’s growth is a testament to the effectiveness of the Nigerian Content Act, which he believes is fostering the development of local talent and skills in the sector.
The Nigerian Content Act
The Nigerian Oil and Gas Industry Content Development Act was enacted in 2010. The Act established the Nigerian Content Development and Monitoring Board (NCDMB), which aims to drive the growth of local companies and talent, ensuring they can compete effectively within the industry.
The major aims of the act are to Integrate oil producing communities into the oil and gas value chain, Foster institutional collaboration, Maximize the participation of Nigerians in oil and gas activities, and Link the oil and gas sector to other sectors of the economy., Maximize utilization of Nigerian resources i.e. goods, services and assets and attract investments to the Nigeria oil and gas sector (service providers, equipment suppliers etc.)
The proactive efforts of the Nigerian Content Development and Monitoring Board (NCDMB) have been instrumental in deepening the capacities and capabilities of local players, paving the way for sustainable success and global competitiveness.
Ultimately, the Nigerian Content Act seeks to build the capacity and sustainability of local operators, demonstrating that the industry can thrive in the hands of indigenous investors.
Companies Like Aradel Benefitting
Falade highlighted how companies like Aradel Holdings have benefited from the Act, noting that it has allowed local companies to expand their operations, improve production performance, and leverage acquired assets for future growth.
The Nigerian Content Act has also made it easier for more local investors to enter the oil and gas sector and become active players in the industry.
Falade said, “Aradel is a poster boy of what NCDMB stands for. It’s about developing indigenous and local capacity, building in-country value retention, and ensuring that the industry is safe in the hands of local operators.”
He also pointed to the growth in the number of Indigenous operators, which has risen from just a handful to more than 30 over the past two decades, as evidence of the Act’s effectiveness.
Aradel’s Consolidation Plans
Looking ahead to 2025, Falade outlined Aradel Holdings’ plans to build on its achievements while continuing to pursue growth. The company intends to focus on consolidating its progress, enhancing its strong production performance, and expanding across key business areas, including upstream, midstream gas, and refined products. The company also plans to capitalize on recently acquired fields to ensure steady production and explore new opportunities for innovation and expansion.
The Road Ahead
The success of Aradel Holdings and other indigenous companies reflects the positive impact of the Nigerian Content Act and the NCDMB’s efforts to strengthen the local industry. By focusing on local talent development and capability building, Nigeria’s oil and gas sector is becoming more self-reliant and sustainable.
As local players continue to grow, the potential for international partnerships and exports is increasing, signaling the maturation of Nigeria’s energy sector. The Nigerian Content Act is not only driving economic empowerment and technological advancement but also positioning Nigeria as a key player in the global energy market.
With a strong focus on Indigenous participation and capacity building, the future of Nigeria’s oil and gas industry looks promising, with companies like Aradel Holdings leading the charge in innovation and sustainable growth.
