Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has called on African countries to take greater control of their energy and industrial development. He made this statement in Abuja on Monday while receiving the minister of Hydrocarbons of the Republic of Congo, Stev Simplice Onanga, and other Congolese officials and industry stakeholders. Lokpobiri emphasized that the continent cannot sustainably tackle energy poverty by relying solely on external partners.
Lokpobiri highlighted Nigeria's experience in local content development, which has demonstrated the importance of deliberate policies aimed at developing local manpower, technical expertise, and industrial capacity. He stated that African countries must build indigenous capacity to strengthen their energy sectors and retain greater value from their natural resources. Nigeria is willing to share its experience with Congo to help the country develop its own local content.
According to Lokpobiri, Nigeria's local content policy has significantly increased indigenous participation in the oil and gas industry. Nigerian companies now account for about 60 per cent of oil and gas production, up from previous years. This development is attributed to deliberate policies designed to build the capacity of Nigerian companies and professionals while reducing dependence on international oil companies.
The Nigerian oil and gas industry now has a combination of indigenous and international service companies operating side by side. Local firms are increasingly taking advantage of opportunities in the land and shallow-water segments. However, the deep offshore sector remains largely dominated by major international service companies due to its high technical and financial requirements.
Lokpobiri noted that the divestment of some onshore and shallow-water assets by international oil companies has created opportunities for indigenous operators to expand their technical and operational capabilities. This has enabled Nigerian companies to acquire the skills, equipment, and expertise required to participate more effectively across the oil and gas value chain.
The Minister also highlighted the role of the Nigerian Content Development and Monitoring Board (NCDMB) in developing indigenous capacity. The NCDMB provides funding sourced from the industry rather than direct government financing. Oil and gas contracts are required to contribute one per cent to the local content fund, which is subsequently deployed to support capacity development and other initiatives.
On crude oil production, Lokpobiri said Nigeria has recorded a significant increase in drilling activity, with more than 65 rigs currently operating in different fields, compared with about 10 to 14 rigs before the current administration. This increase is attributed to the current administration's efforts to boost drilling activity and make new discoveries.
Key points
- African countries must build indigenous capacity to strengthen their energy sectors.
- Nigeria's local content policy has increased indigenous participation in the oil and gas industry.
- The NCDMB plays a crucial role in developing indigenous capacity in Nigeria's oil and gas sector.
