Olabode Sowunmi: Nigeria Must Prioritize Local Oil and Gas Capacity Development

Olabode Sowunmi has asserted that Nigeria must maintain a steadfast commitment to developing its local capabilities in the oil and gas industry, cautioning that failure to do so will lead to a dependence on foreign experts.

In an interview with ARISE NEWS, Sowunmi highlighted the importance of reinforcing local content under the Petroleum Industry Act (PIA), urging for the empowerment of domestic stakeholders to enable them to effectively compete with international firms.

He drew comparisons with Norway's oil sector, explaining that the European nation, which currently produces over two million barrels of oil each day, initiated its oil era in the early 1970s without any local capacity. Sowunmi noted that Norway made strategic partnerships with seasoned American and British companies operating in the North Sea, ensuring significant local involvement. This approach has gradually fostered a competitive domestic energy market.

Sowunmi stated, “Local enterprises must be given the opportunity to participate. Presently, Norway, which also produces oil, has a higher output than we do. When they began oil production in the early 1970s, they lacked local expertise, a situation that has since changed as they now compete effectively.

“The same principle of fostering local content is evident. At that time, they brought in experts from America and Britain who had experience in the North Sea, all while ensuring there was adequate local content engagement. The reality is if we do not have a determined focus on developing our local capacity, no one else will undertake this task for us.

Currently, we discuss the gas master plan, which is rooted in the firm belief that Nigeria has its internal market that must be tapped into so that international gas prices do not adversely affect us.

“Although we have yet to reach that level, we do have numerous gas-based industries that have, for the first time, presented us with opportunities for equitable development. One promising aspect of the gas master plan is the potential for establishing industries in every local government, which would enhance local capacities. If this materializes, it could mean a reduction in rural-urban migration, allowing only those who truly need to relocate to urban areas. Achieving these goals is unattainable without an emphasis on local content and building the capabilities of domestic companies.”