The House of Representatives has commenced an investigation into oil and gas companies operating in Nigeria over alleged breaches of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.
The decision followed a motion adopted during Tuesday’s plenary session, where lawmakers expressed concern that many multinational oil firms were flouting the local content law, which mandates the prioritization of Nigerian goods, services, and human resources in the petroleum sector.
Moving the motion, Hon. Patrick Obahiagbon (APC–Edo) said several companies had continued to award contracts and import materials in violation of the law, depriving local firms and professionals of opportunities to participate meaningfully in the industry. He warned that such practices undermine national development goals and perpetuate economic dependency.
“The Local Content Act was enacted to promote indigenous participation and build capacity within Nigeria’s oil and gas industry,” Obahiagbon said. “However, reports indicate that some companies have deliberately circumvented these provisions, engaging in unfair practices that weaken local enterprise.”
Following deliberations, the House resolved to mandate its Committee on Local Content to summon the Nigerian Content Development and Monitoring Board (NCDMB) and key industry stakeholders for explanations on enforcement lapses. The committee is expected to submit its findings within four weeks.
Lawmakers argued that the violation of the Act not only erodes confidence in government regulations but also contributes to capital flight and job losses. They emphasized that stronger oversight and sanctions are necessary to ensure compliance and safeguard Nigeria’s economic interests.
Chairman of the Committee on Local Content, Hon. Legor Idagbo, assured that the House would pursue the matter thoroughly, adding that no company—foreign or local—would be spared if found guilty of violating the law. “This investigation is not a witch hunt,” he said. “It is about accountability, transparency, and ensuring that Nigerians benefit fully from their natural resources.”
The NOGICD Act, enacted in 2010, aims to increase indigenous participation in the oil and gas sector by mandating operators to give preference to Nigerian firms in the award of contracts and employment. Despite its provisions, implementation has been inconsistent, with several companies accused of exploiting loopholes and weak enforcement mechanisms.
Industry observers say the House probe could expose systemic non-compliance and prompt a broader review of Nigeria’s local content framework, particularly in light of ongoing efforts to boost domestic capacity and reduce foreign dependence in critical sectors.
The investigation is expected to commence in the coming weeks, with lawmakers pledging to make the findings public and recommend sanctions where necessary to strengthen adherence to the law.
