Jonathan urges stronger local content to boost industrial growth
A Vision for Local Content and Economic Diversification
Former President Dr. Goodluck Ebele Jonathan has praised the advancements made in indigenous participation within Nigeria’s oil and gas industry, while emphasizing the need for further efforts to enhance local content. His goal is to strengthen the nation's industrial base and promote economic diversification.
During his tenure, Dr. Jonathan signed the Nigerian Oil and Gas Industry Content Development (NOGICD) Act into law. This legislation provides a robust legal framework aimed at increasing local involvement, facilitating technology transfer, creating jobs, and supporting the growth of Nigerian businesses across the entire oil and gas value chain.
The former leader shared these insights during the inaugural Sweet Crude Dialogue, hosted by De Mangrove Conversations in Yenagoa, Bayelsa State. The event focused on the theme: “Through the Python’s Eyes: 70 Years of Oil and Gas Production in Nigeria.”
Progress in Building Local Capacity
Dr. Jonathan expressed satisfaction with the progress achieved in developing local capacity within the petroleum industry. He highlighted that his administration was committed to ensuring that Nigerians became active participants rather than passive observers in the country’s most strategic economic sector.
“I am particularly pleased that Nigeria has made progress in developing local capacity within the petroleum industry. During my administration, we remained committed to ensuring that Nigerians became active participants rather than passive observers in this strategic sector,” he stated.
He also spoke about the future of the industry, urging Nigeria to use its hydrocarbon resources to build a diversified and resilient economy amidst the global energy transition.
A Personal Conviction
Dr. Jonathan recalled that his belief in local content was shaped long before he became President. He recounted an official visit to China while serving as Deputy Governor of Bayelsa State. During this trip, he visited the country’s oil museum and learned that all equipment used in China’s petroleum industry was locally manufactured.
He noted the irony that although Nigeria discovered oil in 1956, two years before China’s first commercial oil discovery in 1958, the country continued to import most of the equipment and consumables needed for its oil and gas industry.
This experience reinforced his determination to prioritize the local content law upon becoming President. “I believed that if we could get local production of equipment for the oil industry right, it would naturally extend to other sectors of the economy. That was why I gave priority to the Local Content Act when I became President.”
Beyond Crude Oil Exports
Dr. Jonathan stressed that the true value of Nigeria’s petroleum resources lies not just in crude oil exports but in building industries around the sector. “It is not just about selling crude oil. Yes, we earn revenue from crude exports, but that alone does not create the jobs we need or diversify the economy. What drives diversification is the industrial aspect of the oil industry.”
He emphasized the importance of local production of most of the equipment and consumables required by the industry. “We have made good progress, but there is still more to do.”
Restoring Peace in the Niger Delta
Reflecting on efforts to restore peace in the Niger Delta, Dr. Jonathan recalled that as Vice President, he personally visited militant camps deep in the creeks, including the notorious Camp One, during negotiations that led to the amnesty programme and lasting peace in the region.
He recounted that although the militants insisted he attend the meeting without armed security, despite the concerns of his security team, he accepted the risk in the interest of achieving peace.
Global Challenges and Local Solutions
Dr. Jonathan noted that debates around oil and gas development are similar across producing nations, as governments worldwide face increasing environmental pressures while balancing economic development. He urged the organizers to continue highlighting issues that directly affect host communities and the sustainable development of the Niger Delta.
He also emphasized the need for greater attention to community development and the role of sub-national governments in ensuring that the benefits of the region’s natural resources translate into improved living standards for the people.
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