Local Content in Nigeria’s Oil and Gas Sector: A Watershed 2010s

Local Content

Efforts by the Nigerian government to address the domination of the sector by foreign oil and gas companies commenced with the establishment of the Nigerian National Oil Corporation in 1971, to stimulate indigenous participation in the oil and gas industry.

However, subsequent years witnessed minimal progress in the attainment of indigenous participation in the oil and gas industry; and despite renewed momentum in 2001 led by the National Petroleum Investment and Management Services (NAPIMS) through its workshop themed “National Workshop on Improvement of Local Content and Indigenous Participation in the Upstream Sector of the Petroleum Industry”, which culminated in the establishment of a National Committee on Local Content Development (the NCLCD), the 2000s decade ended in a less than desirable position for proponents of local content in Nigeria’s oil and gas industry. As reported by the NCLCD in 2002, local content of goods and services in the upstream sector of the oil and gas industry in Nigeria was less than five percent (5%), at the time. This meant that about 95% of the yearly expenditure of about US$8 billion was flowing out of the country.

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