Otago's reply started disastrously as Kuggeleijn (2 for 31) removed Rippon for a second-ball duck in the first over with a simple caught and bowled.
At the other end Gibson was wreaking havoc, taking four wickets in the space of three overs.
First he had former Northland cricketer Brad Wilson caught at first slip for nine and followed that up with an identical wicket two balls later to dismiss Ryan Duffy for a duck.
In his next over he hurried Neesham (13) up, forcing an inside edge on to the stumps from the Black Caps all-rounder.
Gibson then finished off by getting Black Cap Neil Broom to nick one through to Seifert, ending his innings at just two runs off 25 balls.
When Brett Hampton (1 for 21) removed Michael Bracewell for six, Otago were reeling at 42 for 6.
Derek de Boorder gave Otago some respectability with a tough 43, but the introduction of leg-spinner Ish Sodhi (2 for 31) made life hard for the southerners.
Otago were dismissed for 134, giving Northern Districts the valuable win.
Northern Districts next face Wellington tomorrow at Cobham Oval.
Today, the Northern Districts cricket team will be holding a skills and games extravaganza for junior cricket fans and players from 4pm to 5.30pm at Cobham Oval.
The session is free to anyone between the ages of 5 and 16.
Players are expected to bring appropriate clothing for physical activity and a labelled drink bottle.