Nigeria aims for 70% local content in oil and gas by 2027

Nigeria is working to increase the economic returns from its oil and gas industry by strengthening national skills, increasing local companies' access to contracts, and producing equipment locally. The country aims for 70% local content by 2027, meaning 70% of goods, services, and expertise used in the industry will come from within Nigeria.

President calls for more local contracts in oil industry

Nigerian President Bola Tinubu urged international oil companies operating in the country to award more contracts to local engineering firms during a meeting in Abuja with Leemon Ikpea, founder and president of Lee Engineering Group. The Nigerian company is currently building two compression stations in Edo State, intended to allow the Escravos - Lagos gas pipeline network to fully utilize its transport capacity.

Nigeria's "Nigeria First" policy

This orientation is part of the "Nigeria First" policy, which aims to prioritize national expertise, the use of locally manufactured equipment, and the creation of qualified jobs. In 2024, the Tinubu administration had already signed decrees and issued guidelines on the compliance with local content rules, contracting costs, and approval deadlines. These measures aim to attract investments, reduce delays, and expand contract opportunities for Nigerian companies.

Local content rate rising steadily

Nigeria seeks to increase the share of national goods, services, and skills in its oil industry. It has set a target to achieve a local content rate of 70% in the sector by 2027. According to data published in December 2025, this indicator rose from 26% in 2016 to 56% in 2024, showing progress toward the goal.

Funding and incentives for local companies

Funding for suppliers is another aspect of the announced initiatives. In December 2025, the public body responsible for promoting and monitoring the development of local content in the oil and gas industry (NCDMB) and the Bank of Industry presented a 100 million USD fund for Nigerian companies in the oil and gas sector. A separate measure provided, starting January 1, 2026, a certificate attesting to the payment of a 1% contribution to the Nigerian Content Development Fund for obtaining certain oil permits.

Compression stations to boost gas transport

The Lee Engineering project illustrates how a national company can intervene in a major gas infrastructure. The expansion increased the capacity of the Escravos - Lagos pipeline network, but additional compression equipment is needed for it to operate at full potential. The two stations under construction must increase the pressure in the pipeline and enable the utilization of this capacity. They should improve the supply of power plants and industries along the network, while also facilitating deliveries to neighboring countries via the West African Gas Pipeline, with additional export revenue opportunities.