The House of Representatives has initiated a thorough investigation into several oil companies operating in Nigeria for alleged violations of the Local Content Act and the Petroleum Industry Act (PIA). The move follows mounting concerns over non-compliance with key provisions designed to promote indigenous participation and ensure accountability in the nation’s oil and gas sector.
The probe, led by the House Committee on Local Content, aims to examine how multinational and indigenous oil companies have adhered to the laws that mandate prioritization of Nigerian expertise, materials, and services in the oil and gas value chain. Lawmakers have expressed dissatisfaction over reports indicating that some firms have continued to sideline Nigerian contractors and professionals despite the legal framework supporting local content.

During a plenary session on Tuesday, the House resolved to summon major operators, including international oil companies (IOCs), Nigerian independent producers, and relevant regulatory bodies such as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Content Development and Monitoring Board (NCDMB). The House also mandated the committee to present a comprehensive report on the findings within a specified time frame.
According to the motion sponsored by Honourable Awaji-Inombek Abiante, the lawmakers argued that despite the enactment of the PIA and the Local Content Act, violations persist, undermining national goals of local capacity building and sustainable industrial development. Abiante noted that several companies continue to import goods and services that could otherwise be sourced locally, depriving Nigerian firms and professionals of opportunities to contribute meaningfully to the sector.
He further highlighted that such practices have far-reaching economic implications, including job losses, capital flight, and reduced revenue for the government. “The essence of the Local Content Act and the PIA is to guarantee that Nigerians derive maximum benefit from their natural resources. Unfortunately, the continuous disregard for these laws by some operators is a direct affront to national development objectives,” Abiante said.
In their contributions, other lawmakers stressed the need to enforce stricter sanctions on defaulting companies. Honourable Miriam Onuoha noted that without strong oversight, the laws will remain ineffective. She called for the establishment of a monitoring mechanism to ensure that oil companies comply with both the letter and spirit of the laws.
The House also expressed concern that weak enforcement by regulatory agencies has emboldened operators to continue violating the provisions. Members emphasized the importance of ensuring that NUPRC and NCDMB fulfill their mandates of oversight, capacity development, and local industry protection.
Sources within the oil and gas industry suggest that some multinational companies have circumvented local content requirements by using offshore service contracts, engaging foreign technical personnel, and channeling procurement through overseas subsidiaries. Such practices not only violate statutory provisions but also undermine efforts to develop domestic technical expertise and strengthen indigenous capacity.
Industry observers have welcomed the House’s intervention, saying it could reawaken compliance consciousness among stakeholders. They argue that a thorough legislative review could help identify policy gaps and regulatory weaknesses that have hindered full implementation of the laws.
An oil and gas analyst, Mr. Victor Eze, remarked that “Nigeria’s oil industry cannot achieve sustainable growth without the active participation of local players. The PIA and Local Content Act were designed to empower Nigerians, but enforcement has been weak. This probe is a step in the right direction if it leads to real accountability.”
Meanwhile, oil companies are expected to defend their operations before the committee. They are likely to provide records of compliance, including local procurement data, employment ratios, and contract awards to Nigerian firms. Regulatory agencies, on their part, will be required to explain the extent of their monitoring and enforcement activities since the enactment of the PIA in 2021.
The Petroleum Industry Act, signed into law in August 2021, aims to reform Nigeria’s petroleum sector by ensuring transparency, efficiency, and equity in the distribution of oil revenues. It also mandates greater participation of host communities and indigenous firms in the sector. Similarly, the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010 seeks to increase the involvement of Nigerian companies in all aspects of petroleum operations.
Lawmakers have vowed that the probe will not be a mere formality but a concrete step toward addressing long-standing violations. The Speaker of the House, Honourable Tajudeen Abbas, emphasized that the National Assembly would not tolerate any form of non-compliance. “We must ensure that our laws serve the people and not corporate interests. The Nigerian people deserve to benefit from their resources,” he stated.
The committee is expected to hold public hearings where oil companies, contractors, and regulatory agencies will make submissions. Civil society organizations, labor unions, and industry experts are also expected to participate to ensure transparency in the process.
As the probe progresses, analysts predict that it could reshape regulatory compliance in Nigeria’s petroleum industry. If handled effectively, it may lead to stronger enforcement frameworks, increased local participation, and a renewed sense of accountability among operators.
For now, the spotlight remains firmly on the oil firms and regulators who will have to prove their adherence to the laws designed to safeguard Nigeria’s interests and promote indigenous growth within its most critical economic sector.
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