Africa’s rising influence in the global energy sector will depend not only on its vast natural resources, but increasingly on its ability to build indigenous technical capacity, deploy advanced technologies, and develop globally competitive enterprises capable of driving long-term sustainable industrial growth.
This consensus framed discussions at the 2026 Society of Petroleum Engineers (SPE) Africa Technology Conference, where industry leaders examined pathways to strengthen Africa’s position within the evolving global energy value chain.
A key focus of the conference was how innovation, skills development, local content policies, and regional collaboration can be more effectively translated into measurable industrial capability across the continent.
From Participation to Ownership: A Central Debate
Speaking during a high-level panel session titled “Building African Capacity: Local Content, Skills and Industrial Development” on June 16, 2026, Dr. Bolaji Ogundare, Group Executive Director of Pan Ocean/Newcross Petroleum, emphasized that Africa’s progress in increasing indigenous participation must now evolve into deeper capability ownership.
He noted that while African countries have recorded significant gains in local involvement across the energy sector, the next phase of development must focus on sustaining industrial capacity beyond regulatory compliance.
The session was moderated by Onyeka Cindy Ojogbo, CEO and Managing Partner of CLG, and featured other prominent industry figures, including Bankole Adeate, Country Managing Director of Baker Hughes; Ms. Cany Jobe, Director General of The Gambia Petroleum Commission; Hugues Yapo, Country Managing Director of Halliburton; and Engr. Emeka Ene, Chief Executive Officer of Oildata Inc.
Nigeria as a Case Study in Local Content Growth
Drawing from Nigeria’s experience, Dr. Ogundare highlighted the country’s progress in implementing the Nigerian Oil and Gas Industry Content Development (NOGICD) framework. He noted that the policy environment has significantly expanded indigenous participation across the energy value chain.
According to data presented during his remarks, Nigeria’s upstream sector has grown from fewer than 10 operating companies in 2010 to 117 today. In parallel, service companies have expanded to 11,764, while indigenous participation has increased from less than 5% to over 60%. Collectively, these developments have contributed to more than 141,000 direct jobs within the industry.
He described these figures as evidence of meaningful progress, while stressing that participation alone is no longer sufficient to drive long-term industrial transformation.
The Next Phase: Building Industrial Capability
Dr. Ogundare argued that the most critical gap in Africa’s energy development remains the transition from participation to full capability ownership.
“The most critical gap remains the transition from participation to capability ownership. Too often, local content is measured by compliance metrics rather than the development of sustainable industrial capacity, technology ownership, and globally competitive enterprises,” he said.
He further emphasized that Nigeria’s experience demonstrates the importance of policy consistency, but warned that future growth will require a broader industrial strategy anchored on technology development, financing access, skills advancement, and institutional strengthening.
“The key lesson is that local content should be treated as an industrial development strategy, not merely a procurement requirement. Sustainable success comes from combining strict regulation with long-term investments in technical skills, financing, technology and knowledge transfer, and institutional capacity,” he added.
Infrastructure, Innovation and Value Creation
Highlighting the role of infrastructure-led development, Dr. Ogundare pointed to Pan Ocean and Newcross Petroleum projects as examples of how indigenous firms are moving beyond service delivery into operational value creation.
He referenced major developments such as the 160,000 barrels-per-day Amukpe Escravos Pipeline (AEP) and the partnership at the 200 million standard cubic feet per day Ovade-Ogharefe Gas Processing Plant, noting that such projects demonstrate the growing capacity of African firms to develop and operate critical energy infrastructure.
According to him, such investments deliver wider socioeconomic benefits beyond the energy sector, including job creation, improved energy security, and broader economic development.
AfCFTA and the Continental Industrial Opportunity
Looking beyond national frameworks, Dr. Ogundare identified the African Continental Free Trade Area (AfCFTA) as a transformative platform for repositioning local content from a country-specific policy tool into a continental industrial strategy.
“The AfCFTA provides a historic opportunity to expand local content from a national agenda to a continental industrial strategy,” he said.
He called for stronger regional integration, development of complementary industrial capabilities across countries, and the creation of cross-border supply chains that enable African enterprises to scale competitively.
He concluded that Africa’s long-term energy success will depend on its ability to build interconnected ecosystems of indigenous companies capable of competing globally while driving inclusive industrial growth across the continent.
