Minister Warns that Gas Reserves Fall Short of Boosting Nigeria’s Economy

The Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, has stated that merely having vast gas reserves will not lead to growth in Nigeria’s economy without intentional strategies that promote local engagement, skill development, and ownership within the country's value chain.

During the inauguration of the 9th Nigerian International Energy Summit (NIES 2026), which was centered around the theme: 'Energy for Peace and Prosperity: Securing Our Shared Future,' he highlighted the energy sector as the fastest and most scalable route to prosperity for Nigeria.

He pointed out that natural gas is vital to Nigeria's efforts at economic diversification and is a key component of the country's broader energy transition strategy. In a session titled: “Local Content Beyond Compliance: Building African Industrial Powerhouses,” Ekpo noted the importance of natural gas as essential to energy security and a pragmatic approach to transition towards lower-carbon frameworks. He described the gas industry as not only pivotal for energy security but fundamentally essential for industrialization and economic resilience.

Previously, local content requirements mainly targeted minimum thresholds for contracts, workforce, and equity. Ekpo stressed that the focus must shift from mere compliance to performance, where local businesses become productive, innovative, and competitive on the global stage.

“This session motivates us to exceed compliance and foster a performance- driven local content strategy that actively develops our industrial capacity and long-term competitiveness,” he further remarked.

To build such capacity, significant investments must be made in various areas including engineering, project management, gas processing, pipeline setup, fabrication, LNG operations, maintenance services, and downstream gas- dependent industries like fertilizer, petrochemicals, and compressed natural gas for transportation.

Patience Oyekunle, the Permanent Secretary at the Ministry of Petroleum Resources, highlighted the necessity of perceiving energy not simply as a retail commodity but as a driver of stability, development, and national security. “Energy must be viewed as more than a commodity; it is an essential catalyst for stability and industrial progress,” she asserted, urging that stakeholders work meticulously to shape Africa’s energy trajectory centered on development and competitiveness.

Oyekunle acknowledged that the Nigerian Oil and Gas Industry Content Development Act of 2010, which is enforced by the Nigerian Content Development and Monitoring Board, has been effective in decreasing reliance on imports and enhancing local participation; however, she cautioned that mere compliance is no longer adequate. “The fundamental inquiry today is: How can we transition from compliance-focused local content to result-oriented frameworks that forge robust industrial centers at the national and continental levels?” she questioned.

She identified several critical areas that require focus to enable this transition, such as boosting human capital, enhancing technical and managerial skills, fast-tracking technology transfers, and increasing domestic production and service capabilities. According to her, genuine local content should not merely be quantified in percentages but should be evaluated based on the depth of local expertise, robust supply chains, and the creation of quality, sustainable jobs.

She emphasized the importance of structured apprenticeship schemes, competency certifications, and the need for stronger collaboration between industries, educational institutions, and training centers to cultivate the workforce necessary for a contemporary, technology-oriented energy sector. Oyekunle also stressed the significance of maximizing retained value through local activities in fabrication, engineering services, logistics, petrochemicals, and emerging sectors, underlining that owning value chains is crucial for sustaining resilience in the long term.

Additionally, Minister of State for Petroleum (Oil), Sen. Heineken Lokpobiri, attributed rising project costs in the oil and gas sector to the improper use of the Local Content Act. During a Pre-Conference session at the Nigeria International Energy Summit yesterday in Abuja, he expressed concern over the predominance of foreign companies in service delivery within the sector.

Lokpobiri pointed out that local content is vital for Africa’s energy expansion and indicated that steps must be taken to reduce project costs to attract more investors. He observed, “I find it perplexing that a country physically situated here would have lower project expenses than Nigeria. We identified misapplication of local content as a key issue. Our nation is sufficiently large for both foreign and indigenous companies to collaborate. Currently, local firms are unable to participate in offshore exploration, which remains dominated by a few companies, creating a monopolistic situation.”

He further elaborated, “This monopoly means companies often dictate terms, leading to a lack of competition, which adversely affects pricing.”