Nigerian content policy not targeted at foreign oil companies – Lokpobiri

By Obas Esiedesa, Abuja

The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, has clarified that the Federal Government’s Nigerian content policy is not aimed at excluding foreign oil companies from operating in the country’s oil and gas industry.

Lokpobiri spoke at the pre-conference opening of the 2026 Nigeria International Energy Summit (NIES) in Abuja, themed “Energy for Peace and Prosperity: Securing Our Shared Future.”

He said the Nigerian petroleum industry is large enough to accommodate both indigenous and foreign companies, stressing that government policy is focused on building the capacity of local firms to compete effectively with foreign Engineering, Procurement and Construction (EPC) companies.

According to the Minister, the Nigerian Content Act has provided financing support to indigenous companies to enhance their competitiveness.

“When I assumed office as Minister, one of the first major issues I encountered concerned the implementation of local content. As someone with an EPC background, I was repeatedly confronted with questions about why project costs in Nigeria were higher than in other countries, even when those projects were executed locally,” he said.

“We found this unacceptable and resolved to address it. A country should not have higher project costs than foreign jurisdictions. Upon careful review, we discovered that the challenge stemmed largely from the misapplication of the local content policy.”

Lokpobiri explained that while local companies currently lack the capacity to independently execute complex offshore EPC projects, the solution lies in collaboration rather than exclusion.

“Nigeria is large enough for both EPC companies and indigenous firms to collaborate. Offshore EPC projects still largely fall within the expertise of international companies, and this has sometimes created monopolistic conditions that limit competition in pricing,” he said.

To address this challenge, he said the Governing Council on Local Content has brought together key stakeholders to develop practical solutions through a series of engagements, including meetings held alongside major industry events in Abuja.

“These engagements focused on making project costs globally competitive by encouraging cooperation among EPC companies, petroleum operators and strong indigenous firms,” he added.

Lokpobiri noted that offshore operations present enormous opportunities and that the sector is big enough for both Nigerian and international companies to operate competitively and collaboratively.

“However, past implementation of local content often promoted intermediaries rather than genuine capacity development,” he said.

Earlier, the Minister of State for Petroleum Resources (Gas), Hon. Ekperikpe Ekpo, said gas represents the most immediate, scalable and inclusive pathway for Nigeria and Africa to achieve economic diversification, industrial growth and shared prosperity.

Ekpo, who was represented by the Permanent Secretary of the Ministry of Petroleum Resources, Mrs. Patience Oyekunle, said gas remains central to Nigeria’s Energy Transition Plan and broader industrial agenda.

“For Nigeria, gas remains the cornerstone of our Energy Transition Plan and our broader industrial agenda. From power generation and clean cooking to fertilisers, petrochemicals, methanol and compressed natural gas for transportation, the gas value chain offers unparalleled opportunities for job creation, industrial clustering and regional integration,” he said.

He noted, however, that sustaining these opportunities requires local companies to possess the requisite skills, technology, financing and governance standards to compete at scale.

“Performance-driven local content in the gas sector therefore demands a new compact. The government must provide clear, stable and coordinated policy signals that reward capability development and long-term investment. Industry operators must embed local capacity development into project design as a core value driver. Financial institutions must innovate to de-risk gas projects for indigenous firms, while training and research institutions must align skills development with the demands of a modern gas industry,” he stated.

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