Nigeria’s Senate has issued a fresh warning to international oil companies (IOCs) and industry operators over violations of local content regulations, signaling tougher enforcement and heightened legislative oversight across the oil and gas sector.
The Chairman of the Senate Committee on Local Content, Senator Joel-Onowakpo Thomas, delivered the warning on Tuesday at the 14th Practical Nigerian Content Forum in Yenagoa, Bayelsa State. He said widespread non-compliance persists despite long-standing legal frameworks designed to promote indigenous participation.
According to him, the National Assembly has now entered a stricter phase of enforcement after what he described as years of weak monitoring.
He said Nigeria already has clear legal instruments, including the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, the Nigeria First Policy, and Executive Order 5, all of which mandate meaningful Nigerian participation across the economy.
Senate Begins Industry-Wide Compliance Audit
Senator Thomas disclosed that the committee has already launched multiple enforcement actions. These include formal requests for detailed disclosures from oil companies and regulators.
He said the Senate has written to operators, IOCs, and the Nigerian Content Development and Monitoring Board (NCDMB), demanding documents on compliance levels, project execution, and content obligations.
Where inconsistencies emerge, he said, the Senate will summon both operators and regulators. Investigative hearings will follow where necessary.
He added that the committee is also working with organised labour to expose companies that deliberately undermine local content requirements.
Human Capital Development Funds Under Scrutiny
The lawmaker raised concern over the alleged abuse of Human Capital Development (HCD) funds, which the NOGICD Act mandates companies to dedicate to Nigerian capacity-building.
Under the law, oil and gas projects valued above $1 million must allocate 1–3 percent of their contract value to human capital development. Thomas stressed that the provision is compulsory and not optional.
He described the continued misuse of the funds as one of the most serious compliance failures in the industry.
He also expressed concern that Nigeria still lags in local capacity development despite over six decades of oil production and more than a decade since the NOGICD Act became law.
Senate Reviews Waivers, Content Plans
The Senate committee, he said, has begun reviewing Nigerian Content Plans, compliance frameworks, and all waivers previously granted to operators.
According to him, companies found negligent will face corrective actions, while deliberate violations will attract sanctions.
He also urged Nigerians to report violations through appropriate legislative channels to strengthen enforcement across the sector.
Petroleum Minister Defends Limited Foreign Sourcing
Meanwhile, the Minister of State for Petroleum Resources, Heineken Lokpobiri, acknowledged that some services still require foreign expertise due to gaps in local capacity.
He explained that waivers only apply where Nigerian firms lack the technical ability to execute specific projects.
However, the minister raised concern over local contractors acting as intermediaries by transferring awarded contracts to foreign firms. He said this practice inflates project costs and weakens genuine local participation.
Lokpobiri also disclosed that the Tinubu administration is engaging global engineering, procurement, and construction (EPC) firms to return to Nigeria after previous exits linked to regulatory misunderstandings.
Executive, Legislature to Align on Regulatory Reforms
The minister said both the executive arm and the National Assembly will hold talks to resolve outstanding regulatory conflicts affecting local content enforcement.
He also said that sustained project activity remains critical to the survival of the NCDMB, as the board depends largely on industry operations for funding.