In Nigeria, a nation rich in human and natural resources, a troubling disparity persists in the job market: while qualified Nigerians struggle to secure meaningful employment, expatriates often occupy roles that locals are fully capable of filling. This imbalance, particularly evident in high-value sectors like oil and gas, telecommunications, and technology, underscores the urgent need for the rigorous implementation of Nigeria’s Local Content Law, specifically the Nigerian Oil and Gas Industry Content Development Act (NOGICD Act) of 2010, and its principles extended to other industries. Despite the law’s progressive intent to prioritize Nigerian participation, its enforcement has been inconsistent, allowing expatriates to dominate lucrative positions while local talents are marginalized. This article explores the root causes of this disparity, its socioeconomic consequences, and why enforcing the Local Content Law to the letter is critical for Nigeria’s economic sovereignty and equitable growth.
Enacted in April 2010, the NOGICD Act was a landmark piece of legislation aimed at increasing indigenous participation in Nigeria’s oil and gas industry, a sector historically dominated by foreign companies and workers. The law mandates that Nigerian companies and personnel be given preference in the award of contracts, services, and employment opportunities, provided they meet required standards. It defines local content as “the quantum of composite value added to or created in Nigeria through utilization of Nigerian resources and services in the petroleum industry resulting in the development of indigenous capability without compromising quality, health, safety, and environmental standards.”
Key provisions include requiring operators to submit Nigerian Content Plans detailing how they will prioritize local labour and resources, mandating a minimum percentage of Nigerian labour for projects exceeding $100 million, and ensuring expatriate positions are limited to 5% of management roles to protect investor interests while fostering local capacity. The law also established the Nigerian Content Development and Monitoring Board (NCDMB) to oversee compliance and facilitate skill transfer.
Complementing the NOGICD Act, Executive Order 5, signed in February 2018 by President Muhammadu Buhari, broadens the local content agenda to science, engineering, and technology sectors. Titled “Presidential Executive Order for Planning and Execution of Projects, Promotion of Nigerian Content in Contracts, Science, Engineering, and Technology,” it mandates that Nigerian professionals and firms be given preference in public projects, contracts, and employment. The order emphasizes the use of locally manufactured goods and services, requiring foreign companies to partner with Nigerian firms and employ Nigerian professionals in executing projects funded by public resources. It also promotes capacity building through mandatory skill transfer programs and establishes a National Content Monitoring Committee to ensure compliance across ministries, departments, and agencies (MDAs). Executive Order 5 extends local content principles beyond oil and gas, aiming to foster indigenous expertise in critical sectors like comanufacturing.Together, these policies form a powerful framework to empower Nigerians, reduce reliance on foreign labor, and drive sustainable economic growth. Yet, their impact remains limited due to inconsistent enforcement.
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Beyond oil and gas, similar local content policies have emerged in sectors like telecommunications and ICT, with guidelines from the National Information Technology Development Agency (NITDA) requiring 50% local content in ICT operations. However, despite these frameworks, the reality on the ground tells a different story.
Despite the NOGICD Act’s clear directives, expatriates continue to dominate high-paying, skilled, and even menial roles in Nigeria. In the oil and gas sector, for instance, companies have been reported to flout expatriate quota guidelines, employing foreign nationals without proper approval. Senator Adams Oshiomhole, during a Senate Committee on Local Content meeting, highlighted a decades-long trend where jobs meant for Nigerians are taken by foreigners, forcing qualified locals to seek low-level opportunities abroad.
The telecommunications sector faces similar challenges. Stakeholders have criticized the absence of a robust local content policy, leading to job losses for Nigerians and poor remuneration due to outsourcing practices by foreign-owned companies. In the tech industry, despite Nigeria’s growing pool of skilled youth, limited broadband access (45.61% penetration in January 2025) and unreliable power supply hinder initiatives like the 2025 remote work collaboration with foreign governments, which risks favoring urban elites over rural workers.
About 2 weeks ago, the Senate Committee on Local Content headed by Senator Joel-Onowakpo Thomas paid a working visit to the President of the Nigeria Labour Congress, Comrade Joe Ajaero. The Labour leader decried the extent of abuse, revealing that expatriates are now being imported into the country to perform menial tasks such as janitorial and toilet cleaning services.
He accused powerful individuals and organizations of undermining local content laws with impunity, calling for immediate intervention to prevent further marginalization of Nigerian workers.
Ajaero also raised alarm over wage disparity in the workplace, noting that expatriates on the same job grade as Nigerians often earn twice as much.
He said some companies deliberately manipulate immigration and trade documents to hide the true nature of their workforce and avoid regulatory scrutiny.
Senator Joel-Onowakpo Thomas, assured that the government is now more determined than ever to hold violators accountable.
He emphasized that rising unemployment cannot be addressed unless the laws meant to protect Nigerian jobs are enforced and respected.
He revealed that the Committee is currently reviewing complaints submitted by local operators in both the oil and gas and non-oil sectors concerning poor compliance with local content requirements.
Onowakpo said that the issues under review include the award and execution of contracts, implementation of local workforce development plans, project delivery, and failure to meet technology transfer obligations.
The committee is also scrutinizing Nigerian Content Plans submitted by companies and government agencies to ensure they align with national employment and economic goals.
The failure to enforce local content laws has far-reaching implications. High youth unemployment, particularly in urban areas, remains a pressing issue, with Nigeria’s unemployment rate exacerbated by the sidelining of local talent. The loss of jobs to expatriates deprives Nigerians of opportunities to build technical expertise and contribute to economic growth. The NCDMB reported that, between 2010 and 2012, the NOGICD Act created 30,862 direct and indirect jobs, but this falls short of the potential impact if fully enforced. These statistics are no different from 2012 to 2025.
Enforcing the Local Content Law to the letter is not just a matter of policy compliance—it’s a matter of national pride and economic survival. Here’s why:
1. Job Creation and Skill Development: Full implementation would prioritize Nigerians for roles across skill levels, from manual labor to managerial positions, fostering skill transfer and reducing unemployment. The NCDMB-PETAN Capacity Building Internship Programme, which ties contract awards to graduate recruitment, is a model that could be scaled across sectors.
2. Economic Growth: Retaining a larger share of industry spending in Nigeria would stimulate SMEs, increase tax revenue, and reduce capital flight. The NOGICD Act’s goal of retaining $10 billion of the $20 billion annual oil and gas expenditure is achievable with stricter oversight.
3. Equity and Social Stability: Addressing wage disparities and ensuring fair treatment for Nigerian workers would reduce resentment and promote social cohesion. Transparent contract awards and community involvement in project monitoring, as mandated by the law, would build trust.
4. Global Competitiveness: By investing in local capacity, Nigeria can develop a skilled workforce and robust industries capable of competing globally, as seen in Norway’s successful local content model in the 1970s.
To realize these benefits, the Nigerian government must take decisive steps to Strengthen NCDMB Oversight, Legislative must be accessible to receive petitions and act promptly on them. There is also need empower the NCDMB with greater authority to penalize non-compliance and enforce biometric registration for expatriates to track quota adherence.
Reinstate and Refine the EEL; Resume the Expatriate Employment Levy with clear guidelines to deter unnecessary expatriate hiring while allowing flexibility for genuine skill gaps.
Enhance Transparency; Establish a centralized database to track violations, compliance, and contract awards, as suggested by the NLC, to ensure accountability.
Expand Local Content Policies: Extend robust local content frameworks to non-oil sectors like telecommunications and ICT to protect Nigerian jobs across industries.
Invest in Infrastructure; Address broadband and power supply challenges to ensure initiatives like remote work programs benefit all Nigerians, not just urban elites.
Nigeria stands at a crossroads. The Local Content Law, if enforced rigorously, can transform the nation’s economic landscape by empowering its people, retaining wealth, and fostering sustainable development. The current disparity, where expatriates feast on opportunities while Nigerians struggle cannot continue. It’s time for the government, regulators, and industry stakeholders to commit to the letter of the law, ensuring that Nigeria’s resources benefit its people first. Only then can the nation reclaim its economic sovereignty and provide its youth with the opportunities they deserve.
