Local content policy not meant to block foreign oil firms – FG

The Federal Government has said Nigeria’s local content policy is not aimed at shutting out foreign oil companies, but at building the capacity of indigenous firms to compete effectively.

Speaking at the pre-conference opening of the 2026 Nigeria International Energy Summit (NIES) in Abuja, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, said the country’s oil and gas industry has enough space for both local and international players.

He explained that the Nigerian Content Act was introduced to support indigenous firms, including access to financing, but admitted that its implementation has often fallen short of expectations.

“When I assumed office as Minister, one of the first major issues I encountered concerned the implementation of local content,” Lokpobiri said, noting concerns over why projects in Nigeria cost more than similar ones abroad. He described the situation as “unacceptable”, adding: “A country should not have higher project costs than foreign jurisdictions.”

According to him, a review showed that the problem was linked to the misapplication of the local content policy rather than the policy itself. He stressed that while local firms are yet to independently handle complex offshore Engineering, Procurement and Construction (EPC) projects, collaboration remains key.

“Nigeria is large enough for both EPC companies and indigenous firms to collaborate,” he said, adding that offshore projects still largely fall within the expertise of international firms, sometimes creating pricing monopolies.

Lokpobiri disclosed that the Governing Council on Local Content has begun engaging industry stakeholders to drive cooperation and make project costs globally competitive. He also acknowledged that past practices often benefited intermediaries instead of promoting real capacity development.