From Compliance To Competitiveness: Nigeria Repositions Gas Sector For Industrial Growth
FG Sets New Direction at Energy Summit
THE Federal Government has outlined a far-reaching strategy to reposition Nigeria’s energy sector as the engine of industrialisation, job creation and long-term economic resilience, calling for a decisive shift from compliance-driven local content policies to performance-based frameworks capable of building globally competitive indigenous energy companies.
This policy direction was unveiled on Monday in Abuja at the opening of the 9th Nigerian International Energy Summit (NIES 2026), themed “Energy for Peace and Prosperity: Securing Our Shared Future.” Senior government officials stressed that Nigeria’s vast natural gas resources must be leveraged not merely for export revenues but as a foundation for domestic industrial power.
Gas as the Backbone of Economic Transformation
Speaking at a strategic session titled “Local Content Beyond Compliance: Building African Industrial Powerhouses,” the Minister of State for Petroleum Resources (Gas), Hon. Ekperikpe Ekpo, described natural gas as Nigeria’s most immediate and scalable pathway to economic diversification.
According to Ekpo, while Nigeria is richly endowed with gas reserves, resources alone do not guarantee development. What matters, he said, is the deliberate creation of policies that deepen local participation, ownership and technical capability across the energy value chain.
“The gas sector is not only critical to energy security and a pragmatic transition to lower-carbon systems, it is fundamentally the backbone of industrialisation and economic resilience,” the minister stated.
He noted that Nigeria’s gas ambitions extend beyond domestic power generation to industrial feedstock, transportation fuel and export-oriented gas-based industries.
Limitations of Compliance-Based Local Content
Ekpo acknowledged that Nigeria’s local content journey, particularly since the enactment of the Nigerian Oil and Gas Industry Content Development Act in 2010, has delivered notable gains. Indigenous participation in contracts, labour and asset ownership has increased, and import dependence has reduced in several areas.
However, he argued that these gains have not consistently translated into the emergence of technically strong, export-ready Nigerian firms capable of retaining value and competing globally.
“Earlier frameworks focused largely on meeting minimum targets,” Ekpo said. “While that expanded participation, it did not always build companies with the productivity, innovation and resilience required for long-term competitiveness.”
The minister stressed that Nigeria must now evolve toward performance-driven local content, where success is measured by capability, efficiency and global relevance rather than regulatory compliance alone.
Building Capacity Across the Gas Value Chain
Ekpo outlined key segments where deliberate investment and policy support could unlock industrial growth. These include engineering and project execution, gas processing, pipeline construction, fabrication yards, LNG services, operations and maintenance, and downstream gas-based industries such as fertiliser, petrochemicals, methanol and compressed natural gas (CNG) for transportation.
According to him, these segments offer immense potential for job creation, industrial clustering and regional integration if supported by consistent policies and sustained investment.
He added that strengthening indigenous firms in these areas would enable Nigeria to move from being largely a supplier of raw resources to a hub for gas-based industrial production.
Energy Beyond Commodity Thinking
Reinforcing the government’s position, the Permanent Secretary of the Ministry of Petroleum Resources, Mrs. Patience Oyekunle, urged stakeholders to rethink energy as more than an export commodity.
“Energy is not merely a commodity; it is a catalyst for stability, industrialisation and inclusive growth,” she said.
Oyekunle argued that Africa’s energy future must be deliberately shaped around capability development, competitiveness and long-term value retention, rather than short-term revenue considerations.
Redefining Local Content Metrics
While acknowledging the impact of the 2010 Local Content Act and the role of the Nigerian Content Development and Monitoring Board (NCDMB), Oyekunle cautioned that compliance-based benchmarks were no longer sufficient for Nigeria’s evolving ambitions.
“The central question before us is how we evolve from compliance-driven local content to performance-driven local content that builds enduring industrial powerhouses, nationally and continentally,” she said.
She emphasised that genuine local content should be assessed not by percentages on paper but by the depth of local expertise, the robustness of supply chains and the quality of sustainable jobs created.
Human Capital and Technology Transfer
Oyekunle identified human capital development as central to the proposed shift. She called for stronger investments in technical and managerial skills, structured apprenticeship programmes, competency certification and deeper collaboration between industry players, research institutions and training centres.
According to her, Nigeria must intentionally build the workforce required for a modern, technology-driven energy sector if it hopes to compete globally.
She also stressed the importance of accelerating technology transfer and expanding domestic manufacturing and service capacity to retain more value within the country.
Collaboration and Continental Ambitions
Both officials underscored the need for closer coordination among government agencies, operators, financiers and educational institutions. While government must provide stable and predictable policies, industry players were urged to embed capacity development into project design, and financial institutions encouraged to create innovative funding models for indigenous firms.
The strategy, they said, aligns with broader continental objectives under the African Continental Free Trade Area (AfCFTA), positioning Nigeria to export expertise, services and industrial capacity across Africa.
A Defining Moment for Nigeria’s Energy Future
As discussions opened at NIES 2026, Ekpo warned that decisions taken now would determine whether Nigeria and Africa remain exporters of raw resources or emerge as hubs for gas-based industrial development.
“If we get local content right, beyond compliance, we unlock a powerful pathway to inclusive and sustainable prosperity,” Oyekunle said.
