By Ese Ufuoma
Nigeria’s oil and gas industry faces an escalating skills shortage that threatens the nation’s standing as one of Africa’s leading crude producers. The departure of international oil companies (IOCs) from onshore and shallow water assets has placed local firms in charge. Still, a critical gap in technical expertise now casts a shadow over the sector’s growth.
For years, major IOCs like Shell, ExxonMobil, and Chevron have steadily scaled back their investments in Nigeria, redirecting capital toward offshore exploration, gas projects, and renewable energy ventures. This shift has left indigenous oil firms scrambling to fill the vacuum, yet many lack the highly skilled workforce required to manage complex operations and maintain production levels.
The challenge is twofold: while local firms have made progress in acquiring oil assets, they are struggling to find professionals who are equipped with the expertise needed to operate them efficiently. As a result, companies are locked in a race to train and develop talent, a process that takes time and resources.
“Nigeria is dealing with a severe manpower crisis,” said Bolaji Ogundare, Group Executive Director of Newcross Group and Pan Ocean Oil Corporation. “Many graduates lack the technical skills required by the energy sector, which slows their integration into the workforce and limits job creation.”
To address this issue, Ogundare suggests government intervention through incentives such as tax breaks for companies that invest in education, training programs, and scholarships. “This approach may not guarantee employee retention but will significantly strengthen the nation’s workforce. If applied across various industries, it could even reduce the wave of young professionals leaving Nigeria in search of better opportunities abroad,” he added.
The Nigerian government has taken steps to enhance local expertise through the Nigerian Oil and Gas Industry Content Development (NOGIC) Act, overseen by the Nigerian Content Development and Monitoring Board (NCDMB). This policy mandates knowledge transfer from foreign companies to local players, a strategy that has yielded some success. However, industry leaders argue that significant skill gaps persist despite these efforts.
“While the Local Content Act has led to progress in human capital development, more rigorous enforcement is needed,” noted Chinedu Maduakoh, Managing Director of Topline Ltd, during a recent Nigerian Oil and Gas Conference. He emphasized the need for targeted interventions to equip Nigerian firms with the technical know-how required to compete on a global scale.
The looming concern is that as oil majors divest from onshore operations — many of which are plagued by sabotage, theft, and community unrest — local firms may struggle to sustain production. While these companies have devised unique strategies to manage host community demands, the technical expertise required to keep operations running smoothly remains a pressing challenge.
The Petroleum Technology Association of Nigeria (PETAN), which represents over 90 oil and gas service firms, has continuously advocated for increased local participation in the sector. The association provides technical services across drilling, project management, and environmental safety, but its members still face limitations in advanced exploration technologies.
As the global energy transition accelerates, the industry’s skill gap is set to widen further. The next generation of oil and gas professionals will need expertise in automation, artificial intelligence (AI), and digital energy solutions—areas where Nigeria’s workforce remains largely unprepared. Without urgent reforms in education and industry training, the country risks falling behind in the evolving energy landscape.
The question now is whether Nigeria can close this gap quickly enough to sustain its oil industry or if the sector will continue to struggle under the weight of its talent shortages.