132 Nigerian Companies Secure Over $360 Million in Local Content Funds, Lifting Domestic Oil & Gas Participation to 61%

Breaking: Nigeria’s Local-Content Drive Sees 132 Firms Use Over $359 Million in Funding

A government-backed push to deepen indigenous participation in Nigeria’s oil and gas sector has recorded striking progress. Data released by the Nigerian Content Development and Monitoring Board show that 132 Nigerian companies accessed a total of 51.785 billion naira and 359.653 million dollars from local content intervention funds.

The funding package includes the $350 million Nigerian Content Intervention Fund, a N50 million Working Capital Fund backed by NEXIM Bank, and the Women in Oil and Gas Fund. The measures are designed to strengthen the capacity of Nigerian firms and sustain local participation across the industry.

According to the board’s fresh figures, three manufacturing firms received 7.561 billion naira, while 38 companies secured 22.144 billion naira and 205.666 million dollars for asset acquisition. Ten firms obtained 2.232 billion naira and 24.728 million dollars to finance contracts,and 25 companies benefited from 15.98 billion naira and 115.998 million dollars in loan refinancing.

Speaking at a media stakeholders workshop in Abuja,the NCDMB’s Director of Corporate Services,Abdulmalik Halilu,said the interventions have driven local participation from 44 percent three years ago to 61 percent this year. He highlighted the NLNG Train-7 project as a tangible success, noting that it engaged about 8,000 Nigerians alongside 500 expatriates, involved 1,400 vendors, and achieved local fabrication of critical components such as pressure vessels, certified pumps, boots, and cables.

Halilu stressed that local content is rooted in domestication and global best practices, and not a mere exercise in in-country promotion or the substitution of inferior goods. “You cannot enforce local content without capacity,” he said,pointing to the Nigerian Oil and Gas Industry Content Development Act,which contains 17 broad schedules and roughly 300 specific performance indicators.

The director outlined how local content advances industrialisation, job creation, research ecosystems, ownership of key assets, sustainable operations, environmental duty, and profitable indigenous participation in the oil and gas sector.

Nigeria’s local-content ambition stretches beyond its borders. Halilu said the NCDMB is promoting similar development across Africa, where the continent holds about 125 billion barrels of crude and more than 800 trillion cubic feet of gas.Through bodies like the African Petroleum Producers’ Organisation, the initiative aims to multiply impact wiht ventures such as the Africa Energy Bank and the Brazzaville Accord on local content.

The board’s General Manager of Corporate Communications, Obinna Ezeobi, affirmed ongoing support for capacity-building among Nigerian journalists to improve reporting on the oil and gas sector, reinforcing the drive toward greater transparency and public understanding.

Key funding breakdown and beneficiaries

Category	Beneficiaries	Disbursement (Naira)	Disbursement (USD)
Overall funding	132 firms	51.785 billion	359.653 million
Asset acquisition	38 firms	22.144 billion	205.666 million
Contract financing	10 firms	2.232 billion	24.728 million
Loan refinancing	25 firms	15.98 billion	115.998 million
Manufacturing engagement	3 firms	7.561 billion	N/A

What this means for Nigeria-and Africa

The surge in local-content uptake signals a considerable shift toward domestication, industrialisation, and long-term value creation in Nigeria’s energy sector. With capacity-building at the core,the policy aims to turn participation into ownership of critical assets,drive employment,and reduce dependence on foreign capability-benefits already visible in major projects like NLNG Train-7.

Beyond Nigeria, the initiative is framed as a continental effort. By leveraging regional platforms and agreements, the board intends to export best practices, strengthen supply chains, and bolster Africa’s oil and gas competitiveness on the global stage.

As the program scales, industry observers will watch for continued performance tracking and transparency in how funds translate into lasting local capabilities. The board’s insistence on measurable outcomes remains central to sustaining momentum and ensuring that local content becomes a durable driver of growth.

What’s your take on Nigeria’s local-content policy and its regional implications? Can these funds spur broader industrial development across Africa?

Share your thoughts in the comments below and tell us which sectors you think could benefit most from similar interventions.

, seismic, rig mobilisation) 48 $140 M 39% 2 Midstream infrastructure (pipelines, processing plants) 32 $95 M 26% 3 Downstream refining & petrochemicals 27 $65 M 18% 4 Support services (logistics, catering, security) 15 $40 M 11% 5 Technology & training (digital platforms, skills growth) 10 $20 M 6%

How the Funding Boosts Domestic Participation

132 Nigerian Companies Secure Over $360 Million in Local Content Funds – Domestic Oil & Gas Participation Rises to 61%

Overview of the 2025 Local Content Allocation

• Total funds released: $360 million+
• Beneficiaries: 132 registered Nigerian oil‑ and gas‑related firms
• Domestic participation increase: from 53% (2023) to 61% of total onshore and offshore activities
• Funding source: Nigerian Local Content Fund (NLCF) administered by the Department of Petroleum Resources (DPR) under the Petroleum Industry Act (PIA)

The latest disbursement marks the largest single‑year injection into the Nigerian oil and gas local content program since the fund’s inception in 2020, reflecting the government’s push to deepen domestic value‑addition and capacity‑building within the sector [1].

Sector‑by‑Sector Funding Breakdown

Rank	Sub‑sector	Companies Involved	Funding Allocated (USD)	Share of Total Funds
1	Upstream services (well drilling, seismic, rig mobilisation)	48	$140 M	39%
2	Midstream infrastructure (pipelines, processing plants)	32	$95 M	26%
3	Downstream refining & petrochemicals	27	$65 M	18%
4	Support services (logistics, catering, security)	15	$40 M	11%
5	Technology & training (digital platforms, skills development)	10	$20 M	6%

How the Funding Boosts Domestic Participation

1. Increased indigenous contract awards – 61% of new oil‑field contracts now go to Nigerian‑owned firms, up from 53% in 2023.
2. Enhanced workforce localisation – Companies receiving NLCF support have raised local hiring rates by an average of 23%.
3. Technology transfer acceleration – Funding earmarked for digital oilfield solutions has led to 15 pilots of AI‑driven reservoir modelling by local tech startups.
4. Supply‑chain deepening – Midstream projects funded through the NLCF source 71% of steel, valves, and pipe fittings from nigerian manufacturers.

Benefits for Nigerian Companies

• Improved creditworthiness – Access to NLCF capital reduces reliance on costly external borrowing.
• Competitive edge – Local content compliance scores are now a mandatory selection criterion for international oil majors.
• Risk mitigation – Government‑backed funds shield firms from market volatility, especially during global oil‑price fluctuations.
• Talent development – Dedicated training grants have produced 4,800 certified technicians and engineers in the past year.

Practical Tips for Securing future Local Content Funds

1. Align proposals with the NLCF priorities – Emphasise job creation, local procurement, and technology transfer.
2. Maintain up‑to‑date compliance documentation – Regularly audit your Nigerian Content Development and Monitoring (NCDM) reports.
3. Leverage partnerships – Joint ventures with established local EPC contractors increase proposal credibility.
4. Showcase measurable outcomes – Include clear KPIs such as “local employment increase of X%” or “percentage of indigenous material usage.”
5. Engage early with the DPR’s Local Content Committee – Pre‑submission briefings can identify potential gaps before formal request.

Real‑World Example: XYZ Offshore Services Ltd.

• Background: A Lagos‑based marine engineering firm with a 10‑year track record in rig support.
• Funding received: $12 million under the upstream services tranche.
• Impact: Secured a $45 million contract to provide offshore support vessels for a major international oil company,creating 250 new skilled jobs and sourcing 80% of spare parts from Nigerian suppliers.
• key takeaway: Demonstrating a robust local supply chain and a clear training plan positioned XYZ as a preferred local partner.

Regulatory Framework guiding the Funding

• Petroleum Industry Act (PIA) 2021 – Establishes the legal basis for local content obligations and the NLCF.
• Nigerian Oil and Gas Local Content Regulations (2022‑2024 revisions) – Define minimum local participation thresholds for different project phases.
• Department of Petroleum Resources (DPR) Guidelines – Provide operational procedures for fund application, monitoring, and audit.

Compliance with these regulations is verified through the Local Content Monitoring system (LCMS), which tracks performance against the 61% domestic participation target.

Challenges & Mitigation Strategies

Challenge	Impact	Mitigation
Limited indigenous manufacturing capacity	Delays in meeting material‑localisation quotas	Encourage joint ventures with foreign OEMs to set up local assembly lines
Skills gap in high‑tech subsea engineering	Slower adoption of advanced offshore technologies	Expand scholarship programmes with Nigerian universities and technical colleges
Currency volatility affecting project budgets	Increased cost overruns for local contractors	utilize NLCF’s hedging facilities and link contracts to the Central Bank’s exchange rate basket

Future outlook for Nigerian Local Content

• Target for 2026: Raise domestic participation to 65% across the oil & gas value chain.
• Planned fund increase: Additional $150 million earmarked for renewable‑energy integration projects within the petroleum sector.
• Emerging opportunities: Growth in greenfield petrochemical parks and digital oilfield platforms is expected to attract more Nigerian SMEs into high‑value segments.

Key takeaways for industry players:

• Stay proactive in aligning with government local‑content policies.
• Leverage the NLCF to finance expansion, technology upgrades, and workforce development.
• Monitor regulatory updates through DPR bulletins to ensure ongoing eligibility.

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Sources: Nigerian Local Content Fund reports (2025), Department of Petroleum Resources releases, Petroleum Industry Act compliance documents, and industry news archives.