CHALLENGES OF TECHNOLOGY TRANSFER AND ACQUISITION IN THE NIGERIA’S OIL AND GAS SECTOR

Nigeria being one of the developing countries in the world had made various efforts at acquiring foreign technology to drive the development increases in the country. It is certain that oil and gas operation in Nigeria is over 60 years, whereas the sector is still largely foreign- technology driven. While technology transfers effects have been very successfid in the Asian economies like China, India, South Korea and Malaysia, but the level of success in the technological advancement between the Asian economies and Nigeria is in the approach or method adopted by the economies. From the year 2004, the Federal Government of Nigeria began to seek greater indigenous involvement through the encouragement of indigenous participation in upstream operations, marginal fields development programme and the internalization of input in the industry by increasing the quantum of composite value added or created in the Nigerian economy through the utilization of Nigerian human and material resources (Local Content Development Programme). This programme is an attempt at circumventing both the capitalist and the critical social theories of technology transfer and developing an indigenous technology initiative. The various policy and legal framework for the realization of Nigerian content in the development of the industry is considered as well as the prospects and challenges attendant to such initiatives. While the paper finds that significant progress has been recorded in the development of local content in the industry, it makes adequate recommendation towards addressing some of the key challenges to such development in the industry. This is strongly believed that the implementation of the policy on the nation participation will involve greater majority of Nigerians actively in the oil and gas industry and this will ensure the age long desired control of the sector.