Senate committee to sanction firms not adhering to local content rules

Joel-Onowakpo Thomas, chairman of the senate committee on local content, says companies that flout Nigeria’s local content laws will face sanctions.

Addressing journalists at the national assembly on Wednesday, Thomas said the committee is reviewing a series of complaints from indigenous operators over poor compliance with the Nigerian Oil and Gas Industry Content Development (NOGIC) Act of 2010, Presidential Executive Order No. 5 of 2018, and the Nigeria First Policy 2025.

He said the committee is particularly concerned about gaps in contract awards, project execution, human capital development, and technology transfer—issues that directly affect industrial growth and self-reliance.

“All stakeholders are expected to ensure strict compliance with local content laws and regulations in line with the Renewed Hope Agenda of President Bola Ahmed Tinubu,” he said.

Thomas said investigations are ongoing into the slow pace of capacity development in fabrication, marine operations, and engineering; underinvestment in job creation and workforce training; and missed opportunities for advancing domestic technology.

“We have noted with concern the slow pace of implementation and enforcement of local content policies, which has placed Nigeria at a disadvantage,” he said.

“These practices undermine our ability to create jobs, build competitive industries, and retain value within the country.”

He said the committee is currently reviewing all waivers, content plans, and compliance frameworks issued to companies.

The lawmaker added that relevant agencies and private firms will be invited for assessment and warned that sanctions would be imposed where negligence or collusion is found.

Thomas also urged contractors and the public to report any suspected violations of local content regulations.