Nigeria’s offshore oil industry underwent a dramatic ownership transformation during Simbi Wabote’s tenure as Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB). Under his leadership from 2016 to 2023, indigenous companies increased their share of marine vessel ownership from roughly 10% to 46% — a shift that fundamentally altered the country’s maritime energy sector.

“Today, I am happy to inform you that Nigerian ownership of marine vessels currently stands at 40%,” Simbi Wabote stated during his final years at NCDMB. “We are convinced that local ownership of marine vessels will significantly increase” (https://www.simbiwabote.com/post/why-we-constructed-nigerian-content-tower-simbi-wabote-ncdmb-boss-feature-article).

The transformation represents one of the most measurable successes of Nigeria’s local content policy, with profound implications for capital retention, employment, and industrial capacity building.

The foreign dominance era

Prior to 2010, Nigeria’s offshore marine sector operated as a colonial-era extraction model. Over 90% of the expenditure of the maritime segment of the oil and gas industry was lost to foreign economies, with less than 10% of vessels owned by Nigerians. International companies including Tidewater Inc., Seabulk/TES, Bourbon, and Maersk Supply Service dominated the sector, operating thousands of anchor handlers, platform supply vessels, and tugboats.

Seabulk International alone had 20+ vessels operating in Nigeria, the most of any U.S. company, often through its local JV “Modant Seabulk Nigeria”. These multinationals enjoyed robust business under cabotage waivers that bypassed local ownership requirements. The result was predictable: massive capital flight as charter fees and profits flowed overseas while Nigerian entrepreneurs remained locked out of their own maritime economy.

The Nigerian Oil & Gas Industry Content Development Act of 2010 marked a regulatory turning point. Yet laws without enforcement mechanisms remain toothless. Implementation required deliberate policy intervention — precisely the kind of systematic approach that would define Wabote’s later tenure.

Wabote’s Strategic Foundation

When Wabote assumed leadership of NCDMB in 2016, he inherited a framework but faced the challenge of execution. His background as Shell’s Global Local Content Manager provided crucial context for understanding both the technical requirements and commercial realities of marine operations.

“Based on that, Shell then created my portfolio, which was primarily to develop a local content strategy for Shell globally,” Wabote explained in a 2024 interview. His experience managing local content across Iraq, Oman, Australia, and Malaysia informed his approach to Nigerian implementation.

But Wabote recognized that policy alone wouldn’t shift vessel ownership. The fundamental barrier was capital access. Nigerian entrepreneurs faced 24-25% interest rates from local banks while competing against international companies with access to near-zero interest financing from developed markets.

The centerpiece of Wabote’s vessel ownership strategy became the Nigerian Content Intervention Fund (NCI Fund), launched in 2017 with Bank of Industry management. Starting at $200 million and expanded to $350 million by 2020, the fund offered transformative financing terms: single-digit interest rates (8% initially, reduced to 6% during COVID), five-year tenors, and up to $10 million per borrower for asset acquisition.

“I make bold to say that [it] is one of the most successful loan schemes in the country as we speak,” Wabote stated, citing a 98% repayment rate that far exceeded typical Nigerian banking portfolios where 50% defaults are common.

The Ownership Revolution in Practice

The fund’s impact manifested through specific company transformations that illustrate the broader shift. Team Offshore Nigeria, established in 2017, evolved from chartering vessels to fleet ownership. Backed by technical partners (Topaz Energy, later P&O Maritime), Team Offshore initially operated bareboat-chartered vessels but made a “multi-million dollar investment” in 2019 to acquire Team Beleuzi, a brand-new 2019-built Platform Supply Vessel.

The purchase represented more than asset acquisition — it signaled a psychological shift from dependency to ownership. With this transaction, Team Offshore’s fleet grew to 14 vessels (average age 6.5 years) by 2019, all Nigerian-flagged and 100% Nigerian-owned. The company maintained a 90% indigenous workforce, demonstrating the employment multiplier effects of ownership transition.

Marine Platforms Ltd. pursued a different strategy, moving into specialized subsea capabilities previously dominated by foreign operators. In August 2019, it purchased the Siem Marlin – a 93m, dynamically-positioned multi-purpose ROV support vessel built in 2009 – from Norway’s Siem Offshore. The vessel, renamed African Concept, enabled complex deepwater operations that required sophisticated equipment and skilled crews.

Starzs Marine leveraged government support for strategic acquisitions. In 2018, Starzs took delivery of MV Osanyamo, a Damen 5114 Anchor Handling Tug (AHT) built new in China. At 52.3m length and 115-ton bollard pull, Osanyamo is a state-of-the-art offshore support tug designed to assist FPSOs and tankers in crude loading operations.

The investment was enabled by an NCI Fund loan, making Starzs among the first wave of Nigerian companies to transition from leasing to owning high-value marine assets. Company Chairman Greg Ogbeifun praised the intervention: “We can boast of a 100% Nigerian crew on our entire fleet of vessels.”

Market Dynamics and Competitive Response

Wabote’s implementation included enforcement mechanisms that ensured Nigerian-owned vessels received preferential contracting. Policy mandates now give Nigerian-owned and Nigerian-flagged vessels the right of first refusal in contracting. Industry regulators implemented rules that “only vessels classified as owned [by Nigerians] qualify for use in tenders where Nigerian-owned vessels are available”.

This regulatory protection drove high utilization rates for indigenous fleets. Foreign operators adapted through various strategies — joint ventures with Nigerian firms, vessel flagging arrangements, or partnerships to maintain market access. Many sought to circumvent the rules, but Wabote’s enforcement proved consistent.

By 2022, virtually all active Nigerian-owned OSVs were on hire, except a few laid up due to the general market downturn. The utilization improvement enabled vessel owners to generate sufficient revenue for loan repayment and fleet maintenance.

In 2021 NCDMB revealed 168 Nigerian-owned vessels participated in 364 oilfield jobs, whereas foreign vessels on waivers were down to 262 jobs — a complete reversal from a decade prior.

Economic Transformation Beyond Numbers

The ownership transformation generated broader economic impacts beyond the 46% ownership figure. NCDMB estimates Nigeria now retains $8 billion+ per year in oil & gas spend through local content programs like vessel ownership, instead of losing it abroad.

Indigenous vessel owners employ predominantly Nigerian crews, creating maritime expertise and officer experience. Team Offshore’s 90% Nigerian staff and Starzs’s 100% Nigerian crewing are replicated across many companies. Locally owned vessels utilize Nigerian supply chains for maintenance, dry-docking, provisions, and repairs.

Money once paid as charter fees to foreign firms now circulates in Nigeria’s economy, boosting local banks, insurers, and service companies. Ancillary sectors like marine insurance, legal services, crewing agencies, and training institutes expanded accordingly.

Sustaining the Shift

The transformation’s sustainability depends on continued policy support and vessel owner performance. The NCI Fund’s performance has been exceptional. By late 2024, BOI had disbursed about $330 million in loans to 60 Nigerian oil/gas companies, financing dozens of vessel purchases among other projects.

Over 90% of the loaned capital has been paid back — a 90%+ repayment rate far above conventional bank portfolios. The high repayment performance indicates that vessel acquisitions generated expected cash flows, validating the commercial viability of Nigerian maritime operations.

Post-2023 policy developments suggest continued government commitment. In late 2023, Nigeria formally began disbursing the Cabotage Vessel Financing Fund (CVFF) — a separate fund (~$350 million) accumulated since 2003 from surcharges on coastal shipping.

Wabote’s Maritime Legacy

Simbi Wabote’s tenure at NCDMB coincided with the most significant transformation in Nigerian maritime history. The increase from 10% to 46% indigenous vessel ownership represents more than statistical improvement — it demonstrates successful industrial policy implementation in a complex, capital-intensive sector.

The combination of accessible financing, regulatory enforcement, and systematic capacity building created sustainable ownership transition. As Wabote reflected on the broader impact: local content has achieved an “$8 billion annual retention” and set Nigeria on a path to industrial self-reliance.

Whether this transformation continues beyond Wabote’s tenure will depend on maintaining the policy framework and financing mechanisms that enabled the initial success. The marine vessel ownership shift stands as a measurable legacy of his approach to local content development — proof that deliberate policy intervention can reshape entire industries when properly executed.

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