CHALLENGES FACING NIGERIAN LOCAL CONTENT IN OIL AND GAS INDUSTRY
The petroleum industry in Nigeria is the largest industry and mean generator of Gross Domestic product
(GDP) in the West African Nation. Inspite of the huge financial investment made by the Nigerian
government in the oil and gas industry of the economy, it has not resulted in significant benefits for most
Nigerians. The local content (LC) in the industry is still very low as over 60% of the major activities, e.g
exploration, drilling, production, well intervention and service provision remain primarily controlled and
managed by multi-national oil companies. Only minor contract have been awarded to local contractors.
Several challenges, ranging from infrastructural development, political stability, Good investment climate,
project Financing, Transparency, High Educational Standards, Legal Policy, Resource Management,
Research & Development, Fiscal Policy, Environmental Policy are some of the factor impeding the set
target by the Federal Government to achieve 70% in 2010, its local content drive in the oil and gas industry.
This paper identifies the challenges for the ineffective implementation of the Nigeria content policy through
the use of Questionnaires and developed a framework that will address holistically the factors needed to
promote active participation of Nigerians in oil and gas activities without compromising standards in order
to stimulate growth of indigenous capacity. Countries that have achieved success through local content
development were also highlighted in this pape
(GDP) in the West African Nation. Inspite of the huge financial investment made by the Nigerian
government in the oil and gas industry of the economy, it has not resulted in significant benefits for most
Nigerians. The local content (LC) in the industry is still very low as over 60% of the major activities, e.g
exploration, drilling, production, well intervention and service provision remain primarily controlled and
managed by multi-national oil companies. Only minor contract have been awarded to local contractors.
Several challenges, ranging from infrastructural development, political stability, Good investment climate,
project Financing, Transparency, High Educational Standards, Legal Policy, Resource Management,
Research & Development, Fiscal Policy, Environmental Policy are some of the factor impeding the set
target by the Federal Government to achieve 70% in 2010, its local content drive in the oil and gas industry.
This paper identifies the challenges for the ineffective implementation of the Nigeria content policy through
the use of Questionnaires and developed a framework that will address holistically the factors needed to
promote active participation of Nigerians in oil and gas activities without compromising standards in order
to stimulate growth of indigenous capacity. Countries that have achieved success through local content
development were also highlighted in this pape
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