In a move to diversify Nigeria’s economy away from its heavy reliance on oil, the Nigerian Senate is advancing legislation to extend the successful local content framework, long a cornerstone of the oil and gas sector,to key non-oil industries. The Nigerian Content (Non-oil & Gas Sector) Development (Establishment) Bill 2025, designated as SB. 897, seeks to institutionalize local participation in information and communications technology (ICT), construction, and manufacturing.
This expansion aims to foster self-sufficiency, create jobs, and drive innovation, building on the achievements of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010, which has boosted indigenous involvement in the petroleum industry to over 50% in some areas.
The bill, which passed its first reading in July 2025, represents a strategic pivot toward economic resilience. Proponents argue that applying local content principles, such as mandatory use of Nigerian goods, services, and talent; beyond oil will reduce import dependency, enhance value addition, and position Nigeria as a competitive player in global supply chains. Currently, the legislation is gaining momentum amid growing calls for diversification, especially as oil revenues fluctuate due to global energy transitions.
Key Highlights
- The Nigerian Senate is advancing the Nigerian Content (Non-oil & Gas Sector) Development (Establishment) Bill 2025 (SB. 897) to expand local content policies beyond oil and gas to ICT, construction, and manufacturing.
- The bill aims to reduce import dependency, create jobs, and foster innovation, following the success of the NOGICD Act of 2010, which increased indigenous participation in the oil sector to over 50%.
- Sponsored by Senator Asuquo Ekpenyong (Cross River South), the bill proposes the creation of the Nigerian Local Content Development and Enforcement Commission (NLCDEC) to implement and monitor compliance.
- Companies in targeted sectors must submit Local Content Development Plans detailing their use of Nigerian goods, services, and labor before bidding for contracts.
- The Senate Committee on Local Content, chaired by Senator Joel-Onowakpo Thomas (Delta South), is reviewing the bill and pledges strict enforcement of local content laws.
Legislative Push: From Oil Success to Broader Application
The origins of this effort trace back to earlier discussions, but the 2025 bill marks a concrete step forward. Sponsored by Senator Asuquo Ekpenyong (Cross River South), the legislation draws inspiration from the 2020 Nigerian Local Content Development and Enforcement Commission Bill, which proposed extending local content to all economic sectors.
While that earlier version stalled, SB. 897 refines and targets non-oil areas with tailored provisions. Key elements of the bill include the establishment of the Nigerian Local Content Development and Enforcement Commission (NLCDEC), which would oversee implementation through dedicated directorates for ICT, construction, manufacturing, and other sectors.
Entities operating in these industries, termed Nigerian Local Content Entities (NLCEs) must submit comprehensive Nigerian Local Content Development Plans (NLCDPs) with bids for projects. These plans outline the use of local goods, services, employment, and skills development, ensuring a minimum quantum of Nigerian-produced inputs that meet international standards. For ICT, the bill emphasizes technology transfer, requiring non-Nigerian firms to partner with local companies and invest in R&D, with 5% of net profits set aside for such activities.
In construction and manufacturing, it mandates subcontracting at least 40% of works to indigenous firms and introduces liberalized loans for local players to acquire equipment. A 2% surcharge on contracts in these sectors will fund sector-specific development initiatives, with contributions being tax-deductible to incentivize compliance.
Penalties for non-compliance are stringent, ranging from fines of N20 million to N60 million and imprisonment terms of 5 to 10 years for offenses like unauthorized contract transfers or shoddy work. Administrative fines can reach N120 million for repeated violations, highlighting the government’s commitment to enforcement.
The Senate Committee on Local Content, chaired by Senator Joel-Onowakpo Thomas (Delta South), is spearheading the review. The committee has already conducted oversight visits and pledged to probe poor enforcement in existing local content laws, signaling a proactive stance.
With the bill now in committee stages, amendments could address stakeholder concerns, such as balancing local mandates with attracting foreign investment.
Insights from Committee Leadership
In an exclusive discussion with this publication, Senator Asuquo Ekpenyong, the bill’s sponsor, emphasized its transformative potential. “This bill holds immense potential, particularly for the people of Cross River State and Nigeria at large, as it seeks to broaden local participation in key sectors,” he stated during a July 2025 Senate session. Ekpenyong highlighted how the legislation builds on oil sector successes to create opportunities in non-oil areas, noting, “It aims to extend the gains of the Nigerian Oil and Gas Content Development Act to other vital sectors of our economy.”
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Senator Joel-Onowakpo Thomas, chairman of the Senate Committee on Local Content, echoed this sentiment in recent oversight activities. “We are committed to enforcing compliance with local content laws and urge citizens to report erring companies,”
Thomas stressed the committee’s vision for economic growth, adding that local content reforms are essential for sparking a “mining boom” and serving as a model for Africa. “Local content is not a constraint; it is an enabler,” he affirmed, drawing from interactions with the Nigerian Content Development and Monitoring Board (NCDMB).
Voices from Industry Stakeholders
Industry leaders have largely welcomed the bill, viewing it as a catalyst for growth while cautioning on implementation challenges. Kashifu Inuwa, Director General of the National Information Technology Development Agency (NITDA), has been a vocal advocate for local content in ICT. In a recent statement, he committed to policies that limit foreign firms from public sector opportunities unless they collaborate with locals, saying, “This policy effectively limits foreign firms from accessing public sector opportunities unless they collaborate with local partners.”
Inuwa tied this to broader digital transformation goals, noting Nigeria’s ambition to build a “shared digital backbone” and achieve 70% digital literacy by 2027. In the construction sector, stakeholders like those from the Manufacturers Association of Nigeria (MAN) have called for yearly local content targets in government procurements.
At the 53rd MAN Annual General Meeting in October 2025, President Bola Tinubu (represented by Minister John Enoh) unveiled a six-point Nigeria First policy plan, which aligns with the bill’s objectives. MAN’s Director General, Segun Ajayi-Kadir, praised the initiative, stating, “Prioritizing local content in procurement will boost manufacturing and reduce production costs.”
However, he warned of barriers like low technology adoption, urging reforms to address infrastructure gaps.
Felix Ogbe, Executive Secretary of the NCDMB, has extended his support beyond oil, asserting, “When deployed intentionally, local content becomes a lever for self-sufficiency.” In a July 2025 address, Ogbe highlighted how reforms could enable multi-sector growth, including manufacturing, by encouraging backward integration and value addition.
Boma Goodhead, Chairperson of the House Committee on Nigerian Content Development and Monitoring, reinforced this during an October 2025 oversight visit to a cable manufacturing firm in Anambra State. “Nigeria has the capacity to produce world-class industrial materials,” she said, pledging stronger legislative backing for indigenous manufacturers in construction and related fields.
Challenges and Opportunities Ahead
While the bill promises economic diversification, potentially generating $2 billion in export revenue per state and creating millions of jobs, critics point to potential hurdles. Foreign investors, particularly in ICT, have raised concerns about restructuring operations to meet local outsourcing requirements, as noted in a 2025 ITIF report.
Stakeholders also emphasize the need for stakeholder engagement to ensure sustainable development, aligning with Sustainable Development Goals (SDGs) in the construction industry.
As the Senate deliberates, the bill could reshape Nigeria’s economic landscape. With committee hearings expected soon, the focus remains on balancing local empowerment with global competitiveness. If passed, it could mark the dawn of a post-oil era, where ICT, construction, and manufacturing drive Nigeria’s renewed hope for prosperity.
