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Local involvement in harnessing crude oil and natural gas in Nigeria

Author

Listed:
  • Nwosu, H.U.
  • Nwachukwu, I.N.
  • Ogaji, S.O.T.
  • Probert, S.D.

Abstract

Vast financial investments have been made in the upstream crude-oil and natural-gas (CONG) sector in Nigeria, but have not resulted in significant benefits for most Nigerians. The associated major activities, e.g., exploration, drilling, production, well intervention and service provision remain primarily controlled and managed by foreign multi-national companies. Only minor contracts have been awarded to local contractors. Several factors, ranging from locally inadequate finance being available, corrupt local operators, lack of technical expertise and the conflicting attitudes of multi-national operators and local contractors have contributed to this. Yet, numerous opportunities are increasingly available for indigenous entrepreneurs and local contractors. To achieve good public relations, sustainability and better economic performances, a wiser balance between globalisation and localisation is needed! This study considers the impedances to achieving greater indigenous inputs to the CONG sector, with recommendations proffered with respect to what could be done to alleviate them.

Suggested Citation

  • Nwosu, H.U. & Nwachukwu, I.N. & Ogaji, S.O.T. & Probert, S.D., 2006. "Local involvement in harnessing crude oil and natural gas in Nigeria," Applied Energy, Elsevier, vol. 83(11), pages 1274-1287, November.
    • Handle: RePEc:eee:appene:v:83:y:2006:i:11:p:1274-1287
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    Cited by:

    1. Nwankwo, Ebuka & Iyeke, Solomon, 2022. "Analysing the impact of oil and gas local content laws on engineering development and the GDP of Nigeria," Energy Policy, Elsevier, vol. 163(C).
    2. Ugwushi Bellema Ihua & Olatunde Abiodun Olabowale & Kamdi Nnanna Eloji & Chris Ajayi, 2011. "Entrepreneurial implications of Nigeria's oil industry local content policy: Perceptions from the Niger Delta region," Journal of Enterprising Communities: People and Places in the Global Economy, Emerald Group Publishing, vol. 5(2), pages 223-241, April.
    3. Rui, Zhenhua & Cui, Kehang & Wang, Xiaoqing & Chun, Jung-Hoon & Li, Yuwei & Zhang, Zhien & Lu, Jun & Chen, Gang & Zhou, Xiyu & Patil, Shirish, 2018. "A comprehensive investigation on performance of oil and gas development in Nigeria: Technical and non-technical analyses," Energy, Elsevier, vol. 158(C), pages 666-680.
    4. Adewuyi, Adeolu O., 2016. "Determinants of import demand for non-renewable energy (petroleum) products: Empirical evidence from Nigeria," Energy Policy, Elsevier, vol. 95(C), pages 73-93.
    5. Ugwushi Bellema Ihua & Olatunde Abiodun Olabowale & Kamdi Nnanna Eloji & Chris Ajayi, 2011. "Entrepreneurial implications of Nigeria's oil industry local content policy," Journal of Enterprising Communities: People and Places in the Global Economy, Emerald Group Publishing Limited, vol. 5(3), pages 223-241, August.

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