Nigeria needs an estimated $6 billion investment in oil and gas equipment to support increased crude oil production targets and strengthen the capacity of indigenous service companies, the President of the Petroleum Technology Association of Nigeria (PETAN), Mr Ogunsanya, has said.
Ogunsanya, who highlighted the critical role of indigenous oilfield service providers in Nigeria’s production growth ambitions at a roundtable meeting with journalists in Lagos, said adequate funding, equipment acquisition and local capacity development would be essential to achieving the country’s production objectives.
“We estimate that we need $6bn in equipment to handle million barrels production,” he said, underscoring the scale of investment required to equip indigenous operators to meet the growing technical and operational demands of the oil and gas industry.
He noted that while Nigeria continues to pursue higher crude oil production, the availability of modern equipment and the capacity to deploy it efficiently remain critical considerations in translating production ambitions into sustainable results.
According to him, closing the equipment gap would not only strengthen the operational capacity of local service companies but also improve their ability to compete effectively in the domestic and international oil and gas markets.
Despite the funding and equipment challenges, the PETAN president expressed confidence in the progress made by indigenous oilfield service companies, noting that local players had developed capabilities across significant segments of the oil and gas service value chain.
He said the growing technical competence of PETAN members had reduced the need for international service providers to dominate activities in Nigeria, as indigenous companies increasingly deliver services that meet industry requirements.
“Very few multinationals will now come to invest in Nigeria’s oil services because local players have developed capacity across the service value chain,” he said.“We are providing services that are cheaper and of high quality,” Ogunsanya added.
His remarks highlight the growing importance of indigenous oilfield service companies to Nigeria’s quest to deepen local participation, retain industry expenditure within the domestic economy and build a competitive oil and gas services sector.The development of local capabilities also offers opportunities for employment generation, technology transfer and the expansion of Nigerian companies into regional and international markets.
However, sustaining these gains will require continuous investment in modern equipment, access to affordable financing and an enabling business environment that allows indigenous companies to expand their operations.
Ogunsanya commended the Nigerian Content Development and Monitoring Board (NCDMB) for its interventions in developing indigenous capacity, particularly through mechanisms that support equipment acquisition by local oil and gas companies.He specifically acknowledged the Board’s one per cent funding mechanism for equipment acquisition, describing its contribution to indigenous capacity development as significant.
He also cited the WalterSmith modular refinery as an example of the benefits of local content interventions in strengthening domestic participation in the oil and gas value chain.The refinery represents the type of indigenous industrial investment that local content policies seek to encourage by supporting Nigerian businesses to develop technical capabilities, expand infrastructure and participate more actively in the sector.
For Nigeria to maximise the benefits of such interventions, industry stakeholders will need to sustain collaboration among regulators, operators, financial institutions and indigenous service providers to ensure that funding translates into productive assets and measurable operational improvements.
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Beyond the equipment deficit, Ogunsanya warned that the growing loss of skilled professionals poses a significant threat to Nigeria’s ability to sustain and expand its oil and gas operations.He stressed the need for a deliberate, industry-wide training revolution to develop the next generation of Nigerian engineers, technicians and other specialised professionals required to operate increasingly complex oilfield equipment and facilities.According to him, unless the brain drain is reversed and local talent development receives urgent attention, Nigeria risks increasing its oil production without having enough skilled Nigerians to manage the industry’s most technically demanding operations.
The warning raises concerns about the long-term sustainability of indigenous capacity development, particularly as the industry adopts more sophisticated technologies and pursues higher levels of operational efficiency.While investments in equipment are necessary to increase production, the availability of competent personnel to operate, maintain and manage the assets remains equally important.An effective response would require sustained investment in technical education, vocational training, professional development and knowledge transfer, alongside stronger collaboration between oil companies, indigenous service providers, training institutions and relevant government agencies.
For PETAN members, the challenge is therefore twofold: securing the equipment and financing required to support increased production, while ensuring that Nigeria develops and retains the human capital needed to operate the assets.As the country seeks to raise crude oil output and strengthen indigenous participation, Ogunsanya’s position underscores a central issue for the industry: Nigeria’s production ambitions will depend not only on the availability of oil reserves but also on its ability to finance equipment, build local enterprises and retain the skilled workforce required to develop those resources.
