NCDMB secures 20% refinery stake, strengthens corporate governance

The Nigerian Content Development and Monitoring Board (NCDMB) has implemented a corporate governance framework to safeguard its 20% equity stake in a 100,000-barrel-per-day refinery project being developed by African Refinery Group Limited (ARPHL) in partnership with the Nigerian National Petroleum Company (NNPC) Limited.

Felix Ogbe, the executive secretary of NCDMB, confirmed in a statement that the investment deal, the first under his leadership, was subjected to extensive technical, commercial, and regulatory scrutiny, in line with the board’s Commercial Ventures Investment Policy.

The statement noted that the investment is part of NCDMB’s commercial venture programme, backed by Section 70 (h) of the NOGICD Act, which mandates the board to “assist local contractors and Nigerian companies to develop their capabilities and capacities” in advancing Nigerian content in the oil and gas sector.

“The board has also instituted a robust corporate governance procedure that will safeguard its investment and ensure optimal performance of the refinery project,” Ogbe stated.

He further explained, “The Board’s commercial venture investments are also geared to catalyse Federal Government’s strategic policies, provide job creation opportunities in the construction and operation phases, and add value to the nation’s hydrocarbon resources.”

The equity shares for the African Refinery Port Harcourt Limited (ARPHL) project were acquired through the Nigerian Content Intervention Company LTD/GTE, a company limited by guarantee and wholly owned by NCDMB. Additionally, NNPC Limited holds a 15% equity stake in the refinery project, having executed a share subscription agreement in 2024.

The agreement was signed at NCDMB’s liaison office in Abuja, with Ogbe representing the board, while the Managing Director of ARPHL, Tosin Adebajo, signed on behalf of the company.

The investment positions NCDMB as a key partner in ARPHL, which is co-located with the Port Harcourt Refining Company Limited, operated by NNPC at Alesa Eleme, Rivers State.