Nigeria’s Minister of State for Petroleum Resources, Heineken Lokpobiri, has stated that local companies currently do not have the capacity to undertake offshore exploration, a sector dominated by foreign firms with specialized expertise. Speaking on Monday at the 2026 Nigeria International Energy Summit (NIES) pre-conference in Abuja, Lokpobiri emphasized that complex offshore projects require the advanced technical skills and resources that only international contractors can provide.
Despite this, Lokpobiri reassured that Nigeria’s oil fields are large enough to allow both foreign EPC (engineering, procurement, and construction) companies and local firms to operate side by side. He described local content as a “fundamental pillar” for Nigeria’s energy growth and stressed that the government aims to create an environment where partnerships, rather than exclusion, drive industry development.
The minister criticized what he called the “misapplication” of the Nigerian local content law, enacted in 2010. According to him, the law was intended to build capacity within the country through structured collaborations between local and foreign firms, not to sideline international contractors. “Unfortunately, we promoted middlemen instead of growing strong Nigerian companies,” Lokpobiri explained, highlighting past policy gaps that hindered meaningful local participation.
Lokpobiri also addressed financing challenges under the Nigeria Oil and Gas Industry Content Development Act (NOGIC), pointing out that some companies receiving funds failed to invest in capacity growth, instead using the money for short-term gains. To correct this, he has taken leadership of the Nigerian Content Development Council to ensure strategic funding goes to companies committed to long-term development and skill-building.
Concluding his remarks, the minister reiterated the importance of human capital investment and inclusive growth. He emphasized that fostering collaborations between local firms and international partners is key to sustainable energy development in Nigeria, stating, “Our objective now is to bring everybody together—indigenous companies, local firms, and international partners—to ensure real value retention, capacity building, and sustainability.”
source: The cable