Aug 2026· SPE Nigeria Annual International Conference and Exhibition· 0 citations· 9 references
Abstract
The Nigerian oil and gas industry, a major contributor to national revenue and employment, has long been dominated by multinational corporations, limiting indigenous participation and resulting in significant capital flight. In response, the Nigerian Oil and Gas Industry Content Development (NOGICD) Act was enacted in 2010 to enhance local capacity, increase domestic economic retention, and foster technological advancement through the involvement of Nigerian firms. This research critically evaluates the implementation of the Act, by analyzing compliance trends, challenges faced by indigenous companies, and comparative practices from leading oil-producing nations such as Norway, Brazil, and Saudi Arabia. Secondary data from the Nigerian Content Development and Monitoring Board (NCDMB), NNPC, and industry reports form the basis of the analysis. While local content compliance has improved, from 5% in 2010 to 56.7% in 2024, persistent barriers such as limited access to finance, skill shortages, infrastructural constraints, and weak enforcement mechanisms continue to hinder full effectiveness. Case studies, such as Waltersmith Refinery, highlight the potential for indigenous success when supportive frameworks are present. The study concludes with policy recommendations including the deployment of digital compliance tracking systems, expansion of local financing schemes, targeted technical training programs, and periodic legislative reviews to strengthen indigenous participation, enhance economic sustainability, and improve global competitiveness in Nigeria's oil and gas sector.
The most extensive legal reform of Nigeria\'s oil and gas industry in 60 years is represented by the Petroleum Industry Act (PIA) 2021. The PIA\'s provisions for gas commercialization and distribution present a paradox: they aim to maximize gas exploitation as a transition fuel while committing to net-zero aspirations under the Energy Transition Plan (ETP), at a time when global capital markets are increasingly disciplining fossil fuel investments through environmental, social, and governance (ESG) criteria. The alignment, or lack thereof between Nigeria\'s energy transformation objectives and the PIA\'s framework for gas processing and distribution is critically examined in this essay. Drawing on a mixed-methods approach that includes quantitative analysis of gas flaring data (2010–2025), econometric modeling of domestic gas utilization trends, comparative policy analysis of fiscal regimes, and semi-structured interviews with industry regulators and operators, the study finds significant structural contradictions. Methane leakage, flaring penalties, and the long-term asset stranding risk associated with gas infrastructure investments with 30-year economic lives are not sufficiently addressed by the PIA, even though it introduces fiscal incentives for gas development through the Host Communities Development Trust (HCDT) framework and the unbundling of the Nigerian National Petroleum Corporation (NNPC). According to the analysis, the present fiscal architecture incentivizes gas-to-power and gas-to-industry pathways without adequately integrating carbon pricing or methane intensity reduction. The article argues that without a fundamental recalibration of the PIA\'s implementation framework, specifically the introduction of a methane abatement levy, the alignment of gas processing licenses with lifecycle emissions accounting, and the creation of a stranded asset risk management fund, Nigeria risks locking into carbon-intensive infrastructure that will become economically unviable before the end of its technical lifespan.
N. Rimtip, Hezekiah Agogo· Nile Journal of Engineering...· 0 citations
The Petroleum Industry Act (PIA) 2021 represents a landmark reform of Nigeria's petroleum sector, introducing a comprehensive legal, fiscal, and regulatory framework intended to improve governance, enhance transparency, strengthen revenue generation, and promote sustainable investment in the oil and gas industry. This study critically reviews the fiscal and regulatory provisions of the PIA, with particular emphasis on petroleum taxation and its implications for tax administration and revenue mobilization. The study adopts a qualitative desk research approach, relying exclusively on secondary data obtained from statutory documents, government publications, academic literature, institutional reports, and policy papers. Data were examined using content and documentary analysis to identify major reforms, implementation challenges, and emerging policy issues. The findings indicate that the PIA has significantly modernized Nigeria's petroleum fiscal regime through the introduction of a dual tax framework comprising Hydrocarbon Tax and Companies Income Tax, the establishment of specialized regulatory institutions, and improved governance mechanisms for host community development and petroleum operations. However, the implementation of the Act continues to face several challenges, including regulatory overlaps, administrative bottlenecks, oil theft, inadequate production monitoring, revenue leakages, unresolved contractual issues, and limited institutional capacity. These challenges constrain the realization of the Act's intended fiscal and economic objectives. The study concludes that although the PIA provides a robust framework for petroleum sector governance and taxation, its long-term success depends on effective implementation, institutional strengthening, enhanced inter-agency coordination, and sustained regulatory certainty. The study recommends strengthening compliance mechanisms, deploying monitoring technologies, improving regulatory collaboration, and ensuring policy consistency to maximize revenue generation and enhance investors' confidence in Nigeria's petroleum industry.
Uduak Iwok, Ukeme Daniel· INTERNATIONAL JOURNAL OF FIN...· 0 citations
This work examined effect of the industrial sector on Nigerian economy. Statement of problem:
The industrial sector’s contribution to GDP in Nigeria was 39.64% in 1981 and 35.16% in 1982
which have declined to 31.87% in 2021 and 31.24% in 2022. Nigeria is still regarded as
industrially underdeveloped despite her various development plans and strategies. There’s human,
natural resources and investment opportunities in abundance but the desired targets are yet to be
achieved possibly due to wrong and inconsistent policies as well as inadequate techno-managerial
capacity and ability to drive this sector. Specific objectives: To ascertain the effect of mining &
quarrying; manufacturing; electricity, gas and steam; water supply, sewage & waste management
and construction on gross domestic product in Nigeria. Methodology: The theoretical foundation
of this investigation lies in the endogenous growth theory. The ex-post facto research design was
adopted. The data from 1981 to 2024 was obtained from CBN statistical bulletin and analyzed
using OLS technique. The specific objectives were to assess the effect of: mining & quarrying on
GDP; manufacturing on GDP; electricity on GDP; water supply on GDP and construction on
GDP. Findings: (1) MINQUA had a positive (2.856364) and significant effect (0.0000) on GDP;
(2) MANFAC had a positive (11.42379) and significant effect (0.0000) on GDP; (3) ELGASA had
positive (3.615652) but non-significant effect (0.8590) on GDP; (4) WSSEWM had a positive (180.4526) and significant effect (0.0088) on GDP; (5) CONSTR had a negative (-14.6166) but
significant effect (0.0000) on GDP. (5) The probability (f-statistic) and adjusted R2 values were
0.000000 and 99.31% respectively. Recommendations: (1) Government and players in the
industrial sector should keep on improving on policies and strategies with which to continue to
achieve significant effect on MINQUA, MANFAC, WSSEWM and CONSTR, while they should
fine-tune strategies on ELGASA to reverse its non-significant effect.
Edith Nkiruka Mazeli· WORLD JOURNAL OF ENTREPRENEU...· 0 citations
This study investigates the development of local content in Nigeria’s oil and gas sector, emphasizing the
interconnected roles of technology transfer, capacity building, and indigenous participation in fostering sustainable
growth. Drawing on existing literature and a qualitative approach, the paper explores how local content policies have
facilitated partnerships between multinational corporations and indigenous firms, enhancing technological capabilities
and production efficiency. Despite these advancements, systemic challenges such as poor policy enforcement, inadequate
infrastructure, and corruption continue to hinder the full realization of local content objectives. The study underscores the
importance of capacity-building initiatives, highlighting the contributions of the Petroleum Technology Development Fund
(PTDF) in human capital development while addressing gaps in skill alignment with industry demands. Indigenous
participation, though bolstered by quotas, remains constrained by financial and regulatory barriers. This paper presents a
holistic framework for overcoming these challenges through policy reforms, strategic partnerships, and enhanced
collaboration between academia and industry. The findings provide actionable insights for stakeholders and contribute to
the discourse on economic resilience and sustainable development in Nigeria’s oil and gas sector.
A. Eleje, Oladipupo Ganiyu, S. Nwangbo· International Journal of Inn...· 0 citations
President Bola Ahmed Tinubu's administration, which took office on 29 May 2023, has undertaken by far the boldest Nigerian economic reform programme of recent memory. The most important parts of the programme were removal of petrol subsidy, unification of the foreign exchange market, passing of the Electricity Act 2023, and consolidation of the government revenue and expenditure through four new tax laws in 2025. While the reform agenda has its proponents who see it as necessary for correction of long-term fiscal and monetary errors, it has led to a severe increase in the cost of living which has tested the survival of Nigerian businesses, especially the MSMEs that make up about 48 percent of the GDP and employ more than 84 percent of the labour force. This paper looks at how the Tinubu reform package will affect business continuance on economic, social, and environmental bases, primarily by analysing empirical literature, Central Bank of Nigeria and National Bureau of
Statistics official data, and the World Bank's 2025 Nigeria Country Private Sector Diagnostic.
The paper believes that even though the reforms are structurally correct and remove the pre
existing distortions that were creating problems for private sector viability, lack of coordinated
transitional safety nets, insecurity issue continuing, and state-level implementation being very
scattered are the main factors holding sustainability results back. The article ends with the
suggestion that combining macroeconomic stabilisation with direct SME protection, opportunities creation for renewable energy transition, and intentions of stronger ESG disclosure regimes should be the integrated framework to be adopted.
Asuku Sufyan Onimisi· IIARD International Journal...· 0 citations
Nigeria’s electricity sector continues to face major challenges due to aging infrastructure, which
increases operational costs and reduces overall efficiency. This study aimed to assess how
procurement practices influence sustainability within the Nigerian Electricity Regulatory
Commission (NERC), South-East, with a specific focus on the effect of green technology on
environmentally friendly products. Using a quantitative correlational design, 148 surveys were
distributed to staff across Anambra, Enugu, Ebonyi, and Imo states, of which 133 were completed
and used for analysis. Pearson correlation and descriptive statistics were employed to test the
hypotheses. The results revealed a very strong and statistically significant positive correlation
between green technology and eco-friendly products (r = .994, n = 132, p < .01), indicating that
advancements in green technology account for a large proportion of changes in environmental
product outcomes. Based on these findings, the study recommends that NERC strengthen
procurement policies by prioritizing vendors who provide certified green technologies and
environmentally sustainable materials.
Rex Okoro· WORLD JOURNAL OF INNOVATION...· 0 citations