China inspired Nigeria’s oil local content reforms, says Jonathan
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- Former Nigerian President Goodluck Jonathan stated that China's success in developing local capacity in its petroleum industry inspired Nigeria's own oil and gas local content reforms.
- Jonathan recalled visiting China and observing their extensive use of locally sourced materials and expertise in their oil industry, contrasting it with Nigeria's heavy reliance on foreign inputs.
- The Nigerian Content Development and Monitoring Board (NCDMB) has since increased local content participation to 61% from less than 5% in 2010, fostering domestic capacity through various initiatives.
Former President Goodluck Jonathan revealed that Nigeria's significant reforms in local content within the oil and gas sector were inspired by China's successful development of indigenous capacity. Jonathan made these remarks on Monday at the Nigerian Content Tower in Yenagoa during the SweetCrude Dialogue 2026, reflecting on the 16-year impact of the Nigerian Oil and Gas Industry Content Development Act of 2010.
Almost everything used in the Chinese oil industry was sourced locally.
Jonathan recounted signing the bill into law in April 2010, explaining that the inspiration struck during a visit to China when he was deputy governor of Bayelsa State. He observed that "almost everything used in the Chinese oil industry was sourced locally." This observation contrasted sharply with Nigeria's situation, prompting him to question why Nigeria's oil sector was so different. Upon returning to Nigeria, he became increasingly concerned about the substantial economic losses resulting from the nation's near-total dependence on foreign expertise, equipment, machinery, production inputs, and technology.
Why the case of Nigeria in that sector was so completely different
The enactment of the local content law has yielded considerable benefits at both national and community levels. The Nigerian Content Development and Monitoring Board (NCDMB) has been instrumental in this progress. Engr Felix Ogbe, Executive Secretary of the NCDMB, represented by Barr Esueme Kikile, Director of Monitoring and Evaluation, highlighted that local content participation has surged to 61% in 2026, a dramatic increase from less than 5% in 2010. Ogbe emphasized the board's core mandate: to supervise, coordinate, and monitor compliance with local content metrics, deliberately building domestic capacities, and ensuring that a significant portion of industry spending remains within Nigeria.
a vital vantage point to evaluate our historical journey, analyse our current milestones, and chart an ambitious path for our energy future.
The NCDMB's Human Capacity Development Initiative Guidelines have been crucial, ensuring that major industry projects allocate resources for training Nigerian engineers, geologists, technicians, and seafarers. Furthermore, their "60-40" Graduate Training Models and global technical certifications for host communities have established a continuous pipeline of industry-ready professionals. The board has also overseen significant infrastructure projects, including the Nigerian Content Tower, the Oloibiri Museum and Research Centre, and various gas processing and park schemes.
to supervise, coordinate, and monitor compliance with local content metrics, deliberately building domestic capacities, while ensuring that a significant portion of industry spend is retained in Nigeria
DistantNews Editorial
Originally published by The Punch. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.
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