Spotlight On The Local Content Compliance Requirements Presidential Directive 2024

Introduction

The role of the oil and gas industry as the primary contributor to Nigeria's external reserves undeniably highlights the sector's economic significance. It is no secret that the sector bears an overarching importance to the well-being of the Nigerian economy. Hence, the decline in investments in the oil and gas sector witnessed by the country has necessitated the drive by the Federal Government of Nigeria ("FGN") to enhance the investment and operational environment in the sector, to attract both local and international investors.

Nigeria stands as Africa's largest oil producer, boasting 38% of the continent's hydrocarbon reserves¹, the country currently only attracts 5% of Africa's overall oil and gas investments. To foster increased investment and address the challenges facing operators and investors in Nigeria's oil and gas sector, the President of the Federal Republic of Nigeria and Minister of Petroleum Resources, Bola Ahmed Tinubu in the