The Local Content Law in Nigeria: Strategies for Greater Impact on the Economy

Abstract

This paper examines the local content law as passed by the National Assembly and the impact on Nigerians and its economy. The paper discusses the issues in the law and operational strategies to achieve results. The aim of the law is to allow more Nigerians participate in the crucial oil and gas industry; however, there are challenges in achieving maximum participation and benefits by Nigerians, such as lack of funds, infrastructure, policy issues etc. The paper articulates measure that the government should take to achieve better result, in terms of indigenous participation in the oil and gas industry in Nigeria. This includes; articulation of policies that will allow for indigenous participation in the oil and gas industry, embark on market oriented reforms that will integrate the economy towards achieving competitive economic growth and globalization. Small and medium scale enterprises are an integral part of the successful implementation of the local content laws. Finally, the local investors need institutions, infrastructure and policy support from the government in order to develop and contribute effectively to the growth of the economy, through local content improvement in the oil and gas sector in Nigeria.

Keywords: Oil and gas sector, Local content law, Government policy