Local Content Development In The Nigerian Oil And Gas Industry: Prospects And Challenges

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Local Content Development in the Nigerian Oil and Gas Industry: Prospects and Challenges



My appreciation and gratitude for my lecturer who supported me throughout in developing an understanding of the topic under research and guiding me throughout the process of conducting research and collecting data for completing my thesis.


I hereby declare that this work is an authentic and original piece of work and has abides to the laws and regulations of the university related to plagiarism. The sources used for collecting data and information were also authentic and reliable.


The Nigerian petroleum industry is one of a huge industry as well as the most important producer of Gross Domestic (GDP) in the Nation of West Africa. Although, the government has attempted to have significant financial investment in the gas as well as the oil industry of the economy, but it has not proven to be beneficial for most of the Nigerians. The nation is unable to have local content in the industry, which accounts for sixty percent of the key activities that include well intervention, production, drilling, exploration, as well as service provision; multinational companies are principally responsible for controlling and managing these activities. Local contractors have been able to get awarded only the minor contracts. Nigeria faces several challenges in addressing the issue of local content development in the economy. These challenges include Environmental Policy Fiscal Policy, Research & Development, Resource Management, Legal Policy, High Educational Standards, Transparency, project Financing, Good investment climate; political stability, and infrastructural development that impedes the targets that have been set by the Federal Government for its local content development in the industry. The aim of this research is to establish challenges that are faced by the economy of Nigeria for development of local content in the gas and oil industry. The research is also aimed at addressing the factors that are needed for promoting active Nigerian participation in the petroleum actions without compromising standards to achieve indigenous capacity growth. The research is also focused on highlighting countries that have been successful in achieving success through local

content development.





1.1 Background6

1.2 Research Aim and Objectives7

1.3 Research Questions7

1.4 Problem Statement7

1.5 Significance of the Study8

1.6 Nature of the Study8


2.1 The Oil and Gas Industry of Nigeria10

2.2 Nigerian Illiteracy Rate10

2.3 Nigerian Oil and Gas Industry's Local Content Production11

2.4 Initiatives for the Progress of Nigerian Oil and Gas Industry12

2.5 Nigerian Oil and Gas Industry's Local Content Policy12

2.6 The Aims of Nigeria's Local Content Development Policy12

2.7 Government's Initiatives for Local Content Development13

2.8 Challenges and Prospects of Local Content Development13

2.9 Oil and Gas Industry Content Development Act 201014

2.9.1 Recommendations for Improving Local Content Policy in Nigeria14 No Provisions for 'Local Community' Content:14 Inappropriateness of 5% Fine on the Project Sum for Defaulters14

2.10 Steps Taken by Government for Promoting Local Content Development in Nigeria15

2.11 Managing Local Impacts15

2.12 Implementing Local Content in Nigeria16

2.13 Manufacturing Equipment Locally16

2.14 The Way Forward16

2.14 Brief Insight into a Multinational17

2.15 Chapter Summary17


3.1 Qualitative V/s Quantitative ...
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