Nigeria local content growth hit 61% in 2025 as oil operating firms increased to 117, industry stakeholders revealed

Nigeria’s oil operating firms have increased from fewer than 10 before the implementation of local content policies to about 117 currently, while local content performance rose from less than five per cent in 2010 to 61 per cent in 2025.

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The figures were disclosed on Tuesday during the 2026 Nigerian Oil and Gas Midstream and Downstream Summit held in Lagos, where regulators, lawmakers and industry stakeholders projected stronger investments across refining, gas processing, petrochemicals, infrastructure and manufacturing.

The summit, themed “Unlocking, Growing and Sustaining Nigerian Content Development in Nigeria’s Oil and Gas Midstream and Downstream Sectors,” brought together investors, operators, regulators, manufacturers, financial institutions and policymakers seeking to deepen indigenous participation in the energy sector.

Acting Manager of Midstream Monitoring at the Nigerian Content Development and Monitoring Board, Patrick June, said the expansion of indigenous operating firms had generated 11,934 jobs across the industry.

“For instance, Nigerian companies in the upstream sector, which were dominated by international and now national companies, were just less than 10. But as we speak, operating companies are about 117, with a job creation of 11,934. So, that is a significant improvement,” he said.

June further revealed that the NCDMB database currently contains about 11,764 service companies, hundreds of registered firms under the Joint Qualification System, 50 fabrication yards, 20 engineering design firms and 122 manufacturing companies.

According to him, Nigeria local content growth has significantly expanded indigenous participation across the oil and gas value chain.

“Local content has enabled significant growth in operating companies, service companies, individual registrations, fabrication yards, engineering firms, and manufacturing companies, increasing local content from less than 5 per cent in 2010 to 61 per cent in 2025,” he added.

Speaking at the summit, Executive Secretary of the NCDMB, Felix Ogbe, represented by the Head of Planning, Research and Statistics, Austin Azuka, said Nigeria’s oil and gas value chain was undergoing a powerful transformation driven by reforms, policy clarity and growing investor confidence.

Ogbe noted that although Nigeria had historically relied on crude oil exports and imported refined products, recent investments and policy changes were gradually reshaping the sector, particularly with the emergence of the Dangote Petroleum Refinery.

He said the board was deliberately expanding its local content agenda beyond upstream activities into the midstream and downstream sectors.

“However, as we continue to deepen Nigerian content, it has become increasingly clear that the next major frontier for sustainable economic growth, industrial expansion, employment generation, and national competitiveness lies significantly within the midstream and downstream sectors of the oil and gas industry,” he stated.

Ogbe highlighted opportunities emerging in gas gathering, processing, transportation, storage infrastructure, pipelines, cooking gas distribution, compressed natural gas, refining, petrochemicals, logistics and retail operations.

He added that Nigeria was increasingly positioning itself as a processor and exporter of finished and semi-finished energy products rather than merely a crude oil producer.

“One of the most notable achievements in this regard is the emergence of world-class refining infrastructure within our country, particularly the Dangote refinery, which stands today as one of the largest single-train refineries in the world and a major symbol of Nigeria’s industrial ambition, resilience, and capacity for self-sufficiency,” he said.

Chairman of the Senate Committee on Petroleum Resources (Midstream and Downstream), Kawu Sumaila, described the sector as central to Nigeria’s energy future.

According to him, local content development has become a major national economic priority under the evolving petroleum industry framework.

“We believe that Nigerian content must go beyond participation on paper. It must translate into real capacity,” he stated.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority also pledged continued support for investments and local content expansion.

Chief Executive of the NMDPRA, Rabiu Umar, represented by Acting Executive Director for Economic Regulation and Strategic Planning, Olasupo Agbaje, said the industry had witnessed massive investments in recent years, particularly in gas infrastructure and processing.

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“What we have found over the years, and likely so within the last few years, is massive investment. And we are all seeing this happen. Massive investments in the oil and especially in the gas space,” he said.