Local Content in the Nigerian Oil and Gas Sector: A Classical Model for Indigenization

Abstract

The Local Content policy is a vital instrument aimed at facilitating and indigenizing the oil and gas industry, through the creation of national economic values through institutional measure. Hence, this article examined the usefulness of the local content policy in promoting the participation of Nigerians and indigenization in Nigeria. This article revealed that the essence of the local content policy is to ensure the use of local manpower and resources to increase indigenization and foster sustainable development not only in the Oil and Gas sector but in Nigeria as a whole. The article recommended the need for monitoring scheme to regulate and monitor how local employees are paid, and their minimum salary. This can be effectively done by the implementation and supervision of the Board. This article established that the crux of the concept of local content is the quantum of composite value added to or created in the Nigerian economy by a systematic development of capacity and capabilities through the deliberate utilization of Nigerian human, material resources and services in the Nigerian oil and gas industry.