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Nigeria’s local content journey has been defined by a mix of “presidential luck” and persistent infrastructure hurdles, according to Abdulmalik Halilu of the Nigerian Content Development and Monitoring Board (NCDMB).
Representing the NCDMB’s executive secretary at the Nigeria International Energy Summit on Monday, Halilu provided a candid “good, bad, and ugly” assessment of the progress made in domesticating the nation’s petroleum industry.
He highlighted that the board has benefited from exceptional “presidential luck,” noting that every leader from Olusegun Obasanjo to President Bola Tinubu has reinforced the mandate through laws and executive orders.
This high-level support, combined with a highly organised industry and a resilient local supply chain, has created a solid foundation for growth.
However, the journey has not been without significant challenges.
Halilu identified national “binding constraints”—specifically security, infrastructure gaps, and high energy costs—as major hurdles.
He noted that the need to rely on expensive diesel for fabrication and production significantly reduces the attractiveness of local content.
Addressing these infrastructure deficits, he argued, is critical to making the local industry more competitive and efficient.
One of the most vital lessons learnt by the board is that local content must be pragmatic and viewed as a “marathon” rather than a sprint.
Halilu emphasised that the NCDMB prefers a “change management” approach over “wielding the big stick” against operators.
Furthermore, the board found that while Nigeria has vast reserves, the domestic transaction volume for specialised investments, such as seamless pipe plants, sometimes does not meet the required project economics.
This realisation has shifted the NCDMB’s focus toward a broader African market.
By leveraging the Brazzaville Accord and the African Continental Free Trade Agreement (AfCFTA), the board aims to transform Nigeria into a regional hub.
Halilu concluded that by proving a “proof of origin” and adding value locally, Nigerian businesses are now positioned to produce at home and export their services and products across the continent.
