Former President Goodluck Jonathan has revealed that China’s remarkable development journey played a significant role in shaping Nigeria’s approach to local content reforms in the oil and gas industry, saying the Asian nation‘s commitment to self-reliance, industrialization, and technology transfer provided valuable lessons for Africa’s largest economy.
Jonathan made the remarks while speaking at a high-les avel event focused on strengthening cooperation between Nigeria and China. He noted that China’s transformation from a developing nation into one of the world’s largest economies demonstrates the importance of strategic planning, investment in local capacity, and consistent government policies aimed at long-term national development.
According to the former president, Nigeria carefully studied aspects of China’s development strategy while implementing reforms designed to ensure greater participation of indigenous companies and professionals in the country’s petroleum sector. He explained that the objective was not merely to increase local ownership but also to develop technical expertise, create employment opportunities, and retain more value within the Nigerian economy.
Jonathan said the Nigerian Oil and Gas Industry Content Development Act, popularly known as the Local Content Act, represented one of the country’s most significant economic reforms. He described the legislation as a deliberate effort to reverse decades of dependence on foreign expertise and multinational dominance in the oil and gas sector.
He recalled that before the implementation of the reforms, many engineering, fabrication, logistics, and technical services within Nigeria’s petroleum industry were handled almost entirely by foreign companies. As a result, billions of dollars left the country annually, while local businesses struggled to compete and Nigerian professionals had limited opportunities to acquire advanced technical skills.
The former president explained that the Local Content Act sought to change that reality by ensuring that Nigerian companies received greater access to contracts and that international oil firms invested in training local workers, transferring technology, and developing domestic manufacturing capacity.
Jonathan said China’s experience demonstrated that sustainable economic development depends largely on building local industries capable of meeting national needs while remaining globally competitive. According to him, China successfully combined strategic government planning with investments in education, innovation, manufacturing, and infrastructure, creating millions of jobs and lifting hundreds of millions of people out of poverty.
He stressed that Nigeria’s local content policy was designed with similar objectives in mind, although adapted to suit the country’s unique economic environment and constitutional framework. Rather than depending indefinitely on imported expertise, Jonathan said Nigeria sought to empower its own citizens to become active participants in the nation’s most valuable industry.
The former president praised the Nigerian Content Development and Monitoring Board (NCDMB) for overseeing the implementation of the policy and ensuring that indigenous participation has continued to expand over the years. He noted that Nigerian-owned companies now execute projects that were once reserved almost exclusively for international contractors.
According to Jonathan, the reforms have contributed to increased employment, stronger local businesses, improved technical knowledge, and greater confidence among Nigerian entrepreneurs operating within the oil and gas value chain.
He also highlighted the importance of education and skills development, saying countries that invest heavily in human capital are better positioned to achieve sustainable economic growth. Jonathan observed that China’s rapid rise was driven not only by industrial investment but also by its commitment to developing a highly skilled workforce capable of supporting technological advancement.
He urged African governments to prioritize policies that encourage innovation, research, vocational education, and technology acquisition, arguing that these areas will determine the continent’s competitiveness in the global economy.
Speaking on Nigeria-China relations, Jonathan described the partnership between both countries as increasingly important in areas such as infrastructure development, trade, energy, manufacturing, agriculture, telecommunications, and transportation. He said China’s investments in Nigeria have contributed to several landmark infrastructure projects, including railways, roads, airports, and power initiatives.
The former president encouraged both countries to deepen collaboration in sectors that promote industrial growth and knowledge transfer rather than focusing solely on resource extraction. He maintained that partnerships built on mutual benefit and capacity development would produce more sustainable economic outcomes for both nations.
Jonathan also emphasized that Africa must move beyond exporting raw materials and instead develop industries capable of processing natural resources into finished products. According to him, value addition remains one of the biggest opportunities for job creation and economic diversification across the continent.
Industry experts have acknowledged that Nigeria’s local content policy has significantly increased indigenous participation since its introduction. Over the years, Nigerian firms have expanded their involvement in engineering, fabrication, marine services, logistics, drilling support, and other specialized petroleum operations that were previously dominated by foreign contractors.
However, analysts also note that challenges remain. These include limited access to financing for indigenous companies, inadequate infrastructure, fluctuating oil prices, regulatory uncertainties, and the need for continuous investment in advanced technology and workforce development.
Despite these obstacles, stakeholders generally agree that the local content framework has strengthened Nigeria’s domestic oil and gas industry and reduced the country’s dependence on imported technical services.
Jonathan concluded by urging policymakers across Africa to adopt development strategies that prioritize local capacity, innovation, industrialization, and inclusive economic growth. He said nations that empower their citizens with the necessary skills and create opportunities for indigenous businesses are better equipped to withstand global economic shocks and compete effectively in international markets.
His remarks come at a time when Nigeria is pursuing broader economic reforms aimed at diversifying the economy, attracting investment, boosting domestic production, and creating sustainable employment opportunities.
As the country continues to seek pathways to long-term prosperity, Jonathan’s reflections on China’s development experience highlight the enduring relevance of policies that place local participation and national capacity at the center of economic transformation.
