Despite growing momentum for local content in Nigeria’s oil and gas sector, gaps in industrial capacity could undermine the country’s push for a self-sustaining energy industry, industry leaders say.
Speaking at the Nigerian Council of the Society of Petroleum Engineers’ Annual International Conference in Lagos, Shell Nigeria Exploration and Production Company (SNEPCo) Managing Director Ronald Adams noted that even with rising participation by local contractors, complex projects often require splitting work between Nigerian and overseas facilities — a practice that drives up costs and delays delivery.
Adams pointed out that in-country fabrication yards, manufacturing centres, and regional certification systems are still in short supply, limiting the sector’s ability to execute projects end-to-end within Nigeria. He called for targeted investment and better access to finance for indigenous contractors.
While acknowledging these constraints, Shell has committed to ensuring that over 90% of its contract value is handled by Nigerian companies. Adams cited the company’s Bonga field as proof that local capacity, when combined with advanced technology such as predictive analytics and integrated data systems, can deliver high plant availability nearly two decades after production began.
Industry observers warn that without coordinated public and private sector investment, Nigeria risks missing out on the economic benefits of its local content policies. “A sustainable energy future for Nigeria will not emerge by chance. It must be built intentionally, collectively, and courageously,” Adams said.
