The oil and gas sector is creating pathway to revolutionize and catalyze indigenous capacity backed by the local content initiative that is set to deepen with the ‘Nigeria First’ policy, writes CHIKA IZUORA
Nigeria, is actively seeking an industrial revolution to bolster its manufacturing sector and move towards a more diversified, self-reliant economy. This ambition is driven by the Nigeria Industrial Revolution Plan (NIRP) and other initiatives aimed at increasing local production, reducing reliance on imports, and creating jobs.
The Nigeria Industrial Revolution Plan (NIRP), launched in 2014, is a comprehensive strategy to accelerate industrial development and identifies key sectors like agro-allied and agro-processing, metals and solid minerals, oil and gas, and construction as areas of focus for Nigeria’s competitive advantage.
The ‘Nigeria First’ procurement policy recently announced by President Bola Tinubu, is seen as capable of accelerating industrial growth and contribute about N3 trillion to the national economy annually.
In the analysis of the minister of state for industry, trade and investment, John Enoh, the policy will boost the growth of the manufacturing sector by 20 per cent in the next 3 years, reduce imports by 30 per cent and create more than 500,000 jobs in the short term.
“The economic value of implementing the “Nigeria First” policy is about N3 trillion annually, and contribute about 20 per cent to the growth of the manufacturing sector in Nigeria in the next 3 years. Over five hundred thousand jobs would be created through the policy in the short term and lead to a reduction of about 30 per cent of imports,” he stated.
Also speaking on the potential benefits of the policy, the executive vice chairman of the National Agency for Science and Engineering Infrastructure (NASENI), Khalil Halilu, described the policy as a game-changer for local manufacturing, noting that it could accelerate Nigeria’s industrial revolution and unlock massive opportunities for indigenous entrepreneurs.
Halilu said the policy could significantly increase demand for goods and services produced by Nigerian companies.
“Government is a major buyer of goods and services. This move will translate into increased patronage of Nigerian-made products across key sectors,” Halilu said.
According to him, NASENI, which is mandated to drive Nigeria’s science and engineering infrastructure, has long supported local content through the development of homegrown technologies.
These, according to him, include Nigerian-assembled vehicles; smart irrigation systems; renewable energy solutions; and electronic devices, citing the innovations as proof of the growing sophistication and competitiveness of local manufacturing.
“We are determined to be at the forefront of implementing the President’s vision. But this is also a call to action for local producers. Policy support alone is not enough quality and standards must never be compromised,” Halilu added. He expressed confidence in the readiness of local manufacturers to deliver on the vision.
“We have seen the capacity and competence of our local manufacturers. They are ready. With the right support, we can achieve true industrialisation powered by Nigerian solutions,” he stated.
NATIONAL ECONOMY reports that the president, on May 5, 2025, tasked the Bureau of Public Procurement (BPP) with revising procurement guidelines to favour local suppliers, aims to promote Made-in-Nigeria products by giving them priority in government purchases.
He announced a plan to issue an Executive Order which would ensure that the government and Nigerians patronise goods and services that are produced in Nigeria.
In addition, the Manufacturers Association of Nigeria (MAN), the Nigeria Employers’ Consultative Association (NECA) have commended the federal government for the Nigeria First policy on public procurement that prioritises patronage of Made-in-Nigeria goods and services.
The Federal Executive Council (FEC), has approved the new policy framework tagged the ‘Renewed Hope Nigeria First Policy’, which aimed at strengthening Nigeria’s domestic economy and promoting local content.
Minister of information and national orientation, Mohammed Idris, had during a media engagement after the FEC meeting in Abuja, described the planned ban on the importation of foreign goods as a bold shift in the country’s economic approach.
The MAN and NECA, said the new policy would enhance local productivity, increase investments, potentially boost GDP by 56 per cent and reduce unemployment by 37 per cent.
According to the director general of MAN, Mr. Segun Ajayi-Kadir, the policy directive would impact on development of local content, which borders on appropriate technical knowledge transfer to Nigerian professionals.
Ajayi-Kadir said this initiative was a welcome development in the right direction, adding that, “it is a cheering news and long-awaited relief to resilient Nigerian manufacturers, who, despite the tough economic environment, have demonstrated enduring faith in the potential greatness of the Nigerian economy.
“We see this initiative as a true and definite demonstration of the government’s commitment to promoting local industries, boosting economic growth, and creating jobs for Nigerians.
“By giving preference to locally produced goods and services, we can stimulate demand, increase capacity utilisation, and attract investments into the manufacturing sector.”
He said MAN believed that this policy would have a multiplier effect on the economy, leading to increased economic activity, improved GDP growth, and enhanced competitiveness of Nigerian industries.
Furthermore, he said from earlier survey, the effective implementation of such an initiative (as should be stipulated in the consequential executive order) would scale investments and potentially boost GDP by 56 per cent, reduce unemployment by 37 per cent and increase firms’ willingness to employ from 1.5 per cent to 22.6 per cent.
He stressed the need for all tiers of government, private sector entities, and individuals to support this initiative by patronising Made-in-Nigeria goods and services.
“This is with a special focus on uniformed government agencies and institutions (including the military and police), the legislature and quite importantly, the presidency.
“All government contracts should prioritise the patronage of made in Nigeria materials. So, government needs to consult with manufacturers on the way forward to achieve effective and efficient implementation,” he said.
According to him, the new directive was long overdue, and the government, being the biggest spender, would do well to lead by example.
“This will certainly send the right signals and raise consumer confidence in made in Nigeria products,” Ajayi-Kadir said.
He added, “I would say that Mr. President has blown the whistle, let the race to realising the full potentials of our economy begin.
“Let us recommit to the beneficiation of our natural endowments. Let us put action to consuming what we produce, so that we can expand the production of what we consume. This way, we can build a prosperous, more diversified and inclusive economy that benefits all Nigerians.”
On his part, the director general of NECA, Mr. Mr. Adewale-Smatt Oyerinde, said the new policy would boost local production and stimulate the economy.
Oyerinde stated that. “this is a great move, a strategic economic imperative that we’ve been clamouring for.
“Over the past few years, we’ve urged the government to prioritise the patronage of made in Nigeria goods, as this will not only promote local production but will fundamentally reduce the pressure on forex demands, stimulate local industrial growth and facilitate job creation and preservation among many others.”
He added, “We commend the government for this move and urge a thorough implementation. Without implementation across all Ministries, Departments and Agencies, the policy could suffer the faith of many like it.”
Meanwhile, the Petroleum Retail Owners Association of Nigeria (PETROAN) urged the federal government to be careful in implementing the policy to avoid unintended consequences.
The group applauded Tinubu for the bold step in promoting local produce, but warned of potential pitfalls.
Its national president, Dr. Billy Gillis-Harry, urged the government to exercise caution on the import policy to avoid economic shock.
Gillis-Harry expressed concerns that the policy could worsen Nigeria’s inflation and emphasised the need for energy security.
While commending the government’s efforts to strengthen the domestic economy and promote local content, the association urged the government to ensure that the policy does not lead to shortages or price increases, particularly in the petroleum sector, where local refining capacity is still being developed.
PETROAN advised that, “essential and sensitive products, such as petroleum products, pharmaceuticals, and other highly consumable goods, should be exempted from the ban or have a waiver to ensure their continuous availability.
“This is because some products may not be readily available locally, or their local production may be insufficient to meet demand, leading to shortages and price hikes.”
The association noted other factors that may necessitate importing goods to include: “Unavailability of specialised technology or expertise locally, higher quality standards of imported goods, economies of scale favouring imports and strategic or critical nature of the product.”
PETROAN noted that, “even the United States, under the ‘America First’ policy, has implemented targeted tariffs rather than blanket bans, allowing for flexibility and exemptions for critical goods.”
Listing some of the advantages of banning the importation of foreign goods, Gillis-Harry said it promotes local content, stimulates economic growth, create jobs, and increase domestic production.
He added that the policy would aid in reducing reliance on foreign goods, which narrows the trade deficit and conserves foreign exchange.
He said, “Our primary concern is the availability and affordability of petroleum products in Nigeria to meet the daily consumption volume of over 46 million litres of petrol and other petroleum products.
“We must ensure that our policies do not compromise energy security, as this could have far-reaching consequences for the economy and the well-being of Nigerians
NCDMB Set To Accelerate Local Content Growth With ‘Nigeria First’ Policy
After carefully reviewing the potential impact of the policy, the Nigerian Content Development and Monitoring Board (NCDMB) has begun the process of finalising a new procurement framework known as the Nigeria First Procurement Policy.
This aims at prioritising local content participation in the oil and gas value chain and ensuring energy sufficiency.
This effort, which aims to deepen the Federal Government’s First Policy and was announced by the Executive Secretary (ES) of NCDMB, Felix Ogbe, during the 24th Nigerian Oil and Gas Energy Week in Abuja, is designed to deepen indigenous participation across the industry and advance the nation’s energy sufficiency goals.
The NOG week provides a trusted platform where industry leaders come together to have honest conversations and collaborate on solutions to move the sector forward.
According to him, the policy mandates that all goods and services produced or readily available within Nigeria will not be sourced from foreign suppliers unless there is clear evidence of insufficient local capacity.
Ogbe also revealed plans to commission a comprehensive baseline study to verify the current capacity of indigenous service providers and manufacturers supplying goods to the oil and gas value chain.
The ES, said the policy is a deliberate move to entrench local capacity utilisation and reduce the dependence on foreign inputs in Nigeria’s energy sector.
He said that at the heart of this administration’s agenda is a deliberate and strategic push to reclaim our economic independence by harnessing our local capacity.
The theme of the conference is “Achieving Energy Sufficiency through Local Content Implementation.’’
He said, “This year’s theme for the Nigerian Content Seminar is ‘Achieving Energy Sufficiency through Local Content”. This theme is both timely and relevant to the Nigerian Oil and Gas sector. This is so as we strive to attract more investments into the Nigerian oil and gas industry towards achieving energy sufficiency and security.
“For Nigeria, energy sufficiency goes beyond its availability; it extends towards the key elements of resilience, sovereignty, and sustainability, all of which are anchored in strong domestic capabilities. In this regard,” local content is not just a policy, it is a strategic imperative” that creates an enabling environment for investment.
“A nation that aspires to be energy-sufficient must build its energy from within; hence, we must deepen our local capacities across the oil and gas value chain, from exploration and production to processing and delivery to end users.
“By doing so, we will not only retain economic value within our borders but also mitigate supply disruptions, create jobs, and build technological resilience, further contributing to our energy sufficiency.”
He further stated that the government has taken some bold steps to deepen Nigerian content across the nation to ensure energy sufficiency.
Starting with the enactment of the Nigerian Oil and Gas Industry Content Development Act of 2010, which has been operational for the past 15 years now.
Several Executive Orders, such as Executive Order 001, Ease of Doing Business, and Executive Order 005, Giving Preferences to Nigerian companies and firms for procurement contract awards, have been issued.
He added, “The most recent policy aimed at deepening local content is the ‘Nigeria First Policy”. At the heart of this administration’s agenda is a deliberate and strategic push to reclaim our economic independence by harnessing our local capacity.
“The Nigeria First Policy represents this vision. It is rooted in a simple but powerful principle that. All goods or services that are produced and/or available locally will not be procured from foreign sources unless there is a clear and justifiable reason.
“To ensure this policy translates from paper to tangible progress, the Board is already taking some steps. First, we are developing a Nigeria First Procurement policy for the Board.
“The board is incorporating the Nigeria First policy into our internal processes and systems. The policy will be considered for reviewing and approving Nigeria Content Plans, Nigeria Content Compliance Certifications, and so on.”
The board will also commission a baseline study to ascertain and verify the available capacity of Nigerian service providers.
He explained that the study would not only document the goods in use but also identify Nigerian companies producing them and confirm their capacity to meet industry standards.
“Similarly, we will also commission a Baseline Study of the consumables and other goods that are used in the oil and gas industry. The study will also identify Nigerian companies that produce these goods and confirm their capacities”, he continued.
Ogbe said the policy draws its strength from Section 3(1) of the Nigerian Oil and Gas Industry Content Development Act, which mandates that first consideration be given to Nigerian goods and services in all oil and gas industry projects.
He added that the Board had already begun aligning internal systems with the policy and would apply it during reviews of Nigerian Content Plans, Compliance Certifications, and related approvals.
Beyond procurement, Ogbe also highlighted the Board’s Back-To-The-Creek Programme, which targets the development of educational infrastructure and vocational skills in oil-producing communities.
He explained that the programme, which aligns with Tinubu’s Eight-Point Agenda, focuses on upgrading primary and secondary schools, paying stipends to teachers, digitising school syllabuses, and offering scholarships to talented students.
“The initiative is a long-term investment in the human capital of the creeks, designed to create a sustainable workforce for Nigerian industries,” Ogbe said.
Also speaking during a panel session, NCDMB’s Director of Corporate Services, Abdul Malik Halilu, said the Board was working to improve ease of doing business in line with federal directives.
“What we have done in NCDMB is to say, okay, how do we support the industry to ensure that they can get their approvals on time? It is only when you get approvals to increase production that you will be able to talk about energy security in the context of revenue support for governments. So we have already aligned our processes with the presidential directive on ease of doing business, and also ensuring that our service level agreements are fully complied with.
“We are also working towards ensuring that we continuously automate our processes. And then the human interface that is associated with some delays is also being controlled. So to that extent, we have a very strong project certification framework that enables us to ensure that there’s acceleration for the approvals.”
On her part, the Chief Executive Officer of MiCCom Cables and Wires, Bukola Adubi, commended the NCDMB for fostering indigenous participation in the sector.
Adubi, who also serves as the President of the Cable Manufacturers Association of Nigeria, said the Nigerian Oil and Gas Industry Content Development Act has been instrumental in creating opportunities for indigenous companies.
“The NOGIC Act is why we are all here today. It brought everyone together and gave local players a real chance to participate and add value in the industry,” she said.
She, however, expressed concerns over the interpretation of recent policy directives, which she said had sparked uncertainty among investors.
“There are concerns about some of the recent directives; people are beginning to wonder if we are regressing. Local companies have made huge investments to improve capacity, but now there’s talk about the process becoming too expensive or stifling investment,” she said.
She, however, welcomed the clarification from the NCDMB that the new directive was intended to streamline approvals and make the process more cost-effective.
“I won’t deny it, the local content initiative has truly helped. It’s been a game-changer. The NCDMB has supported the industry, and we are investing because we see real market opportunities. We can’t allow the progress we’ve made to be reversed.
