Nigeria’s oil and gas industry is entering a new phase of local content development, with policymakers, regulators and industry executives agreeing that future success will depend less on increasing indigenous participation alone and more on building globally competitive companies with stronger technological capabilities, skilled talent, resilient supply chains and expanded domestic manufacturing.
The consensus emerged during several local content sessions at the opening of NOG Energy Week 2026 in Abuja, where speakers said the next stage of Nigeria’s energy development requires a shift from compliance-driven policies to long-term industrial capacity building.
Participants agreed that sustaining growth in the sector will require greater investment in local manufacturing, technology transfer, gas infrastructure, workforce development and access to affordable finance for indigenous companies. They also stressed the need for stronger collaboration among government, regulators, international oil companies, indigenous operators, financial institutions and academia to create a more competitive and resilient energy industry.
Industry leaders said these measures are critical to creating jobs, retaining more value within the Nigerian economy, attracting long-term investment and positioning Nigeria as a leading energy hub in Africa.
Local Content Has Progressed Beyond Participation
Speaking during one of the local content panels, representatives of the Nigerian Content Development and Monitoring Board (NCDMB) said the country’s definition of success has evolved significantly since the enactment of the Nigerian Oil and Gas Industry Content Development (NOGIC) Act in 2010.
According to the Board, Nigerian participation in the industry has increased from less than five per cent before the Act to about 61 per cent today, reflecting the growing role of indigenous companies across exploration, production, engineering, fabrication and offshore operations.
The Board noted that two decades ago very few Nigerian executives occupied leadership positions within the industry. Today, indigenous companies are executing complex projects, while many Nigerian chief executives now play leading roles across the sector.
NCDMB also identified technology transfer from international operators to Nigerian companies as one of the major achievements of the local content policy, describing it as a critical foundation for future industrial growth.
NCDMB Unveils Reforms to Eliminate Middlemen
Delivering the keynote address on behalf of the Executive Secretary of NCDMB, Engr. Felix Ogbe, the Board’s Director of Capacity Building, Engr. Abayomi Bamidele, announced sweeping reforms designed to strengthen transparency and ensure contracts are awarded to companies with genuine technical capability.
The reforms include a nationwide joint capacity verification exercise and a harmonised contractor grading system developed in partnership with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), NipeX, the Petroleum Technology Association of Nigeria (PETAN), the Oil Producers Trade Section (OPTS) and other industry stakeholders.
The new framework introduces a unified five-tier contractor classification system, replacing the multiple grading models currently used across the industry.
According to Ogbe, the initiative will include physical verification of companies’ facilities and operational capacity rather than relying solely on documentation submitted online.
He said the exercise is intended to eliminate intermediaries who secure contracts without possessing the technical capacity to execute them, while ensuring that genuine Nigerian manufacturers and service providers gain direct access to industry opportunities.
“It is painful when companies that own manufacturing facilities and operational assets become subcontractors to firms that merely secured contracts without the required capacity,” Ogbe said, adding that the reforms are intended to correct that imbalance.
He explained that the audit would also provide government and investors with reliable information on Nigeria’s industrial capacity ahead of several major deep-water projects expected to boost industry activity.
Although local content has increased to about 61 per cent, Ogbe noted that many Nigerian manufacturers continue to operate below capacity because of limited patronage, financing constraints and technology gaps.
He reiterated the Board’s commitment to achieving 70 per cent Nigerian content while shifting the focus from regulatory compliance to sustained capacity expansion.
The Board also announced measures to improve the ease of doing business, including revised procedures for obtaining the Nigerian Content Equipment Certificate (NCEC), an online complaints escalation platform, the registration of Nigerian Content Training Providers and a compliance certificate for the Nigerian Content Development Fund (NCDF).
Ogbe added that more than 20,000 Nigerians have already enrolled in the Board’s Field Readiness Training Programme, with digital skills emerging as the most sought-after area of training.
Emerging Professionals Urged to Build Competence
Another panel focused on developing the next generation of industry leaders.
Godslove Chinyere Oliver, Process Design Analyst at NNPC, said organisations must intentionally create opportunities for young professionals to assume meaningful responsibilities that allow them to contribute to innovation and business growth.
She said NNPC is committed to nurturing future energy professionals through structured development programmes that prepare them for leadership roles across the industry.
Bashir Ahmed, Assistant Manager at NCDMB, argued that visibility alone is no longer sufficient in today’s energy industry.
He said credibility must be supported by competence, noting that the conversation around local content has shifted from the quantity of Nigerian participation to the quality of talent, employability and value creation.
According to him, the industry’s future will depend on professionals who combine technical expertise with measurable impact.
National Chairman of the Nigerian Institution of Petroleum Engineers (NiPeTE), Engr. Yetunde Aladeitan, encouraged young professionals to be deliberate about the value they create and the services they provide.
She said lasting professional reputations are built through consistency, excellence and continuous learning.
The panellists agreed that technical competence must be complemented by supportive policies, mentorship and institutional frameworks that enable young professionals to thrive.
Human Capital Seen as Nigeria’s Competitive Advantage
Executive Vice President, Finance, Strategy and Commercial at Renaissance Africa Energy Company Limited, Olusegun Banwo, described human capital as one of the most important determinants of Nigeria’s future competitiveness.
He said every energy ambition ultimately translates into a capability requirement, stressing that successful project delivery depends on having the right people, the right skills and efficient supply chains.
Banwo observed that Nigeria’s energy industry is entering a period of increased project activity, expanding gas opportunities and growing indigenous participation, making workforce readiness more important than ever.
He argued that the immediate challenge is no longer the availability of talent but ensuring that workers possess the competencies required by a rapidly evolving industry.
Banwo therefore called for stronger collaboration among operators, universities, training institutions, regulators and capacity development agencies to align educational outcomes with industry requirements.
Local Content Must Drive Innovation
Speaking earlier, Portfolio and Country Director of DMG Nigeria Events, Wemimo Oyelana, said Nigeria’s local content policy has become a global reference point after increasing indigenous participation from below five per cent to more than 61 per cent.
She urged stakeholders to move beyond fabrication and assembly into technology development, research and innovation, arguing that future competitiveness will depend on the country’s ability to develop indigenous technologies rather than simply adopt foreign solutions.
Oyelana described local content as more than a regulatory obligation, calling it a national and continental development strategy capable of accelerating industrialisation, creating employment and supporting sustainable economic growth.
Industry Looks Beyond Compliance
Across the various sessions, participants shared a common message: Nigeria’s local content journey has entered a more demanding stage.
Rather than measuring success solely by the percentage of indigenous participation, industry leaders said the next phase will be defined by the ability of Nigerian companies to compete globally through stronger manufacturing capacity, advanced technology, skilled professionals, efficient supply chains and innovation.
They agreed that achieving these objectives will require sustained investment, policy consistency and deeper collaboration between government, regulators, indigenous companies, international operators, financial institutions and educational institutions.
As Nigeria prepares for a new wave of deep-water developments and expanded gas projects, stakeholders said strengthening domestic capacity will be essential to ensuring that more of the industry’s economic value remains within the country while positioning Nigeria as a competitive energy and industrial hub for Africa.
