Nigeria’s former President, Goodluck Jonathan, has sharply criticized Western oil companies for exploiting Nigeria’s historically weak legal framework and lack of technical expertise in the oil sector. Speaking at the Nigerian Content Development and Monitoring Board (NCDMB) Champions of Nigerian Content Awards Dinner in Yenagoa, Bayelsa State, Jonathan revealed how the absence of robust local laws hindered Nigeria from fully benefiting from its vast oil resources.
Jonathan, who received the Nigerian Content Lifetime Achievement Award, recounted his experience and frustrations with the early oil industry laws, which he described as outdated and largely crafted without Nigerian input. “If at the beginning of the oil discovery we had laws designed to protect us, Nigeria would have gone further than this. But we didn’t have those kinds of laws,” he said.
He explained that Nigeria’s earliest oil laws, including the Mineral Oil Ordinances of 1886 and 1914, were colonial-era regulations that did not prioritize local development or skills transfer. It was not until 1969 that the Petroleum Act was enacted—years after Nigeria discovered oil commercially in 1956. Jonathan highlighted the Petroleum Industry Act of 2021 as a significant milestone aimed at correcting past deficiencies.
The former president also emphasized how Western oil firms, unlike their counterparts in China, largely imported everything needed for operations instead of developing local capacity. During a 2000 visit to China as Deputy Governor of Bayelsa State, Jonathan observed the contrast firsthand in Daqing, China’s oil capital.
“In China, most of the needs of the oil industry were manufactured locally,” he noted. “But in Nigeria, if any company needs a valve or equipment, they must import it from abroad. If companies say they invest $1 billion or $500 million in a project in Nigeria, very little of that actually impacts the local economy. Most Nigerians are mere laborers, with only a small fraction of money spent domestically.”
Jonathan’s remarks underscore the crucial role of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, commonly referred to as the Local Content Act, passed in April 2010. The law aims to increase indigenous participation in Nigeria’s oil and gas sector by mandating the use of Nigerian goods, services, and workforce.
He credited Senator Lee Maeba of Rivers State and others for sponsoring the bill and recalled his urgency to sign it, driven by the need to avoid the pitfalls he witnessed abroad. “I hurriedly signed the law because of the experience I had in China,” Jonathan said.
The former president also lauded the current leadership of the NCDMB, especially Executive Secretary Felix Ogbe, for ensuring effective implementation of the local content policies that have helped boost Nigerian participation in the sector.
Nigeria’s oil sector has long been a major driver of the country’s economy, accounting for over 90% of export earnings. However, decades of reliance on foreign companies and imported equipment have stunted the growth of local industries and deprived host communities of meaningful benefits.
The Nigerian Content Act aims to reverse this trend by fostering local capacity building, skills transfer, and investment in indigenous companies. This shift is expected to create jobs, develop infrastructure, and stimulate broader economic growth.
Despite progress, challenges remain. Nigeria’s oil industry still depends heavily on foreign expertise, and the implementation of local content policies faces obstacles such as inadequate funding, limited technical skills, and enforcement gaps.
Former President Jonathan’s call for stronger laws and greater technical know-how highlights the need for continued reform and investment in Nigeria’s oil and gas capabilities. As global energy dynamics evolve, the ability of Nigeria to control and benefit from its natural resources will depend on the strength of its regulatory framework and the development of indigenous capacity.