By Adewale Sanyaolu
Nigeria’s oil and gas sector is undergoing a quiet but profound shift, with indigenous service companies emerging as the true stabilising force behind industry operations, the Petroleum Technology Association of Nigeria (PETAN) has declared.
Raising the stakes in the ongoing local content conversation, PETAN said the future of the industry will no longer be defined by crude production volumes alone, but by the depth of technical capacity built and retained within the country.
A statement by PETAN’s Publicity Secretary, Mr. Joan Faluyi, argued that Nigeria’s energy resilience now rests squarely on the strength of its local service providers, who have steadily taken over critical operational roles once dominated by foreign firms.
She noted that indigenous companies are no longer peripheral players but central to execution across engineering, fabrication, offshore logistics, and safety systems — areas crucial to keeping oil and gas assets productive and secure.
“The real issue today is not participation, but the level of control Nigerians have over execution in the most critical segments of the value chain,” Faluyi said.
According to her, the industry depends on an intricate web of technical processes — from design and construction to maintenance and safety management — with a growing share now handled by Nigerian firms within PETAN’s network.
This evolution, she explained, signals a transition from symbolic compliance with local content policies to a results-driven model where indigenous companies directly sustain operations and drive efficiency.
Faluyi also highlighted the strategic importance of safety infrastructure, often overlooked in public discourse, describing it as fundamental to operational continuity. She listed fire and gas detection systems, emergency response services, equipment calibration, and health, safety and environment (HSE) training as critical services increasingly delivered by local providers.
Her remarks come amid improving local content metrics. Data from the Nigerian Content Development and Monitoring Board(NCDMB) indicates that Nigeria recorded 56 per cent local content in 2024, with projections to hit 70 per cent by 2027.
Despite the progress, she cautioned against overreliance on headline figures, stressing that sustainable growth will be measured by the ability of Nigerian firms to independently design, innovate, and solve complex technical challenges.
The development reflects a broader strategic shift — from mere resource extraction to capability-driven value creation — where retaining expertise and revenue within the domestic economy is becoming paramount.
Faluyi further described PETAN as more than an industry body, positioning it as a structured platform for mobilising and projecting Nigerian technical expertise across the oil and gas value chain.
While asset ownership and capital investment remain important, she emphasised that service companies are the ones translating policy into real-world performance and ensuring operational continuity.
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