Local content development and the resource curse in Nigeria: Comparative lessons and policy reform pathways

Nigeria's experience exemplifies the paradox of the resource curse, an abundance of petroleum wealth coexisting with persistent poverty, economic volatility, and institutional fragility. This study critically examines how the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010 addresses this paradox by embedding local content policies within the broader goal of resource-based industrialisation. Employing a qualitative comparative framework, the study synthesises evidence from seven petroleum-producing countries – Norway, Brazil, Malaysia, Trinidad and Tobago, Angola, Venezuela, and Guyana – to distil cross-national lessons for Nigeria. Data were systematically sourced from peer-reviewed studies, policy reports, and institutional publications, analysed thematically under a success–mixed–failure–emerging typology. Findings reveal that Nigeria has achieved notable progress in domestic participation, skill development, and local procurement since the Act's enactment. Yet implementation remains uneven due to weak institutional coordination, limited technological capacity, and inconsistent enforcement. Comparative insights indicate that sustained local content success depends on strong institutions, industrial innovation, and inclusive governance. The paper recommends strengthening inter-agency coherence, expanding R&D incentives, mainstreaming gender-responsive frameworks, and improving access to finance for indigenous firms to transform Nigeria's petroleum wealth into inclusive, sustainable development.

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Publication Details

Journal
Social Sciences & Humanities Open
Published
2026-01-19
DOI
https://doi.org/10.1016/j.ssaho.2025.102291
Primary Topic
Natural Resources and Economic Development
Type
article
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article

Local content development and the resource curse in Nigeria: Comparative lessons and policy reform pathways

K. A. Obakhume
Social Sciences & Humanities Open
Natural Resources and Economic Development
article

Local content development and the resource curse in Nigeria: Comparative lessons and policy reform pathways

K. A. Obakhume
article en

Abstract

Nigeria's experience exemplifies the paradox of the resource curse, an abundance of petroleum wealth coexisting with persistent poverty, economic volatility, and institutional fragility. This study critically examines how the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010 addresses this paradox by embedding local content policies within the broader goal of resource-based industrialisation. Employing a qualitative comparative framework, the study synthesises evidence from seven petroleum-producing countries – Norway, Brazil, Malaysia, Trinidad and Tobago, Angola, Venezuela, and Guyana – to distil cross-national lessons for Nigeria. Data were systematically sourced from peer-reviewed studies, policy reports, and institutional publications, analysed thematically under a success–mixed–failure–emerging typology. Findings reveal that Nigeria has achieved notable progress in domestic participation, skill development, and local procurement since the Act's enactment. Yet implementation remains uneven due to weak institutional coordination, limited technological capacity, and inconsistent enforcement. Comparative insights indicate that sustained local content success depends on strong institutions, industrial innovation, and inclusive governance. The paper recommends strengthening inter-agency coherence, expanding R&D incentives, mainstreaming gender-responsive frameworks, and improving access to finance for indigenous firms to transform Nigeria's petroleum wealth into inclusive, sustainable development.

Social Sciences & Humanities OpenVol. 13
Openalex Percentile: Top 86%
Natural Resources and Economic Development
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