Local Content Policy and Enterpreneurship: Implications for Small and Medium Scale Industries in the Nigerian Oil and Gas Sector

Abstract

Abstract The introduction of the Local Content (LC) policy by the Nigerian Government in the early 2000's was primarily aimed at transforming the petroleum industry into the economic engine room for job creation and national growth through capacity building and empowerment of Nigerian indigenous companies. Through stimulating higher participation of small and medium scale industries and promoting the utilization of local human and material resources in the oil and gas sector, Nigeria was to ultimately develop as the hub for service delivery within the West African sub-region and beyond. The high technology, capital intensive/high risk nature of operations in the oil and gas sector have always been the challenge that militate against the rapid development of successful entrepreneurship and the realization of government's goal in the area. The Nigerian Oil and Gas Industry Content Development Act 2010 has the potential for effective value repositioning, thus raising our small and medium scale enterprises in the sector to reputable service providers capable of wealth creation and contributing to growth of the national Gross Domestic Product (GDP).