Ayomide Bello
The Minister of State for Petroleum Resources, Ekperikpe Ekpo, has urged a transformative approach in the development of local content policies within the gas sector. Instead of focusing solely on compliance, he emphasized the need for performance-driven models that enhance industrial capacity and ensure long-term competitiveness.
Key Points:
Shift in Strategy: Ekpo called for a strategic shift in local content policy design, advocating for frameworks that prioritize performance over mere compliance.
Indigenous Capacity Development: Emphasizing the importance of building strong local capabilities, he highlighted that Nigerian and African firms should be productive, innovative, and export-ready within the gas value chain.
Collaboration is Key: The Minister stressed the necessity of a “new compact” among government, industry stakeholders, financial institutions, and educational bodies to foster local capacity development.
Policy Stability: He urged the government to provide clear and stable policy signals that promote capability development and long-term investments, while industry operators should integrate local capacity into project designs as a fundamental principle.
Financial Innovation: Ekpo encouraged financial institutions to innovate in ways that reduce risks for indigenous gas projects and called for alignment in skill development to meet the modern industry’s demands.
Potential for Growth: He believes that if executed correctly, local content can act as a catalyst for the emergence of African industrial powerhouses, enabling them to compete in domestic and regional markets and export their expertise globally.
Gas as a Transformation Tool: The Minister asserted that natural gas is essential not only for energy security and transitioning to lower-carbon systems but also as a backbone for industrialization and economic resilience in Nigeria and Africa.
Beyond Compliance: Historically, local content policies have been compliance-focused, leading to increased participation but not necessarily to globally competitive companies or sustainable economic value. Ekpo challenged stakeholders to prioritize performance-driven local content to build industrial strength.
Opportunities in the Gas Sector: He pointed out that the gas value chain holds vast opportunities for job creation, industrial clustering, and regional integration, which require local companies to have the necessary skills, technology, and governance to compete effectively.
Strategic Focus: The Minister concluded by advocating for practical frameworks and measurable outcomes that turn local content into a pathway for inclusive and sustainable prosperity, determining Africa’s role in global gas-based industrial development.
