Report: 2025 • Terrawatt Local Content
Terrawatt, as a Nigerian oil and gas servicing company, fully embraces the principles and mandates of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010. Our commitment to local content is embedded in every aspect of our operations—from procurement and staffing to technology deployment and community engagement.
We understand that local content is not only a regulatory requirement but a catalyst for national industrial growth, value retention, and economic self-sufficiency. By prioritizing indigenous resources and services, we contribute to building a resilient energy ecosystem that benefits all Nigerians.
Terrawatt's compliance strategy aligns with both the letter and spirit of the Act, while upholding safety, quality, and environmental standards. This report highlights our local content performance and strategic initiatives in 2024 and 2025.
The NOGICD Act of 2010 provides the legal bedrock for local content development in Nigeria's oil and gas sector. It mandates the use of Nigerian goods, services, and personnel in industry operations to enhance value retention within the country.
The Act empowers the Nigerian Content Development and Monitoring Board (NCDMB) to enforce compliance and oversee capacity building. Terrawatt ensures all operations conform to this Act, and our compliance is regularly reviewed in collaboration with the NCDMB.
Terrawatt is a wholly Nigerian-owned company, satisfying the requirement that local firms maintain at least 51% Nigerian equity. Our ownership structure positions us for "first consideration" in the award of contracts within land and swamp operations as provided under the Act.
Our leadership team is composed entirely of Nigerian professionals with deep knowledge of the local and global oil and gas landscape. This structure enhances our ability to respond to local challenges with homegrown solutions.
We have made significant progress in recruiting, training, and retaining a largely Nigerian workforce across all departments. Over 95% of our employees are Nigerian nationals, including those in technical, managerial, and executive roles.
Terrawatt's procurement policy gives preference to Nigerian vendors and locally manufactured equipment. In 2024, over 70% of our operational equipment and materials were sourced from Nigerian companies or assembled locally.
We verify the ownership and capacity of our vendors through the NCDMB's Nigerian Content Joint Qualification System (JQS). The company also ensures that international OEMs and partners utilize at least 50% Nigerian-owned equipment when working with or under Terrawatt's operations.
We invest significantly in developing technical competencies within the Nigerian workforce. Through continuous training, certifications, and mentorship programs, we ensure that our staff attain international standards in safety, engineering, logistics, and operations.
Terrawatt is fully registered and actively engages with the Nigerian Content Development and Monitoring Board's Joint Qualification System (JQS). This digital platform is central to our contractor pre-qualification, compliance tracking, and workforce planning.
We regularly update our vendor list, employee data, and project capabilities on the platform to maintain transparency. Our local content officers ensure timely documentation of new contracts, equipment acquisitions, and expatriate employment records on JQS.
In line with the Act, Terrawatt maintains strict controls on expatriate hiring and only employs foreign nationals in areas where local expertise is insufficient. Expatriate roles are time-bound and linked to specific capacity development plans.
As of 2025, expatriates make up less than 3% of our total workforce. Our Human Resources department maintains an Expatriate Succession Plan submitted annually to the NCDMB for review.
Terrawatt supports Nigerian manufacturing by contracting local fabrication yards for pipe welding, skid assembly, and tank construction. In 2024, we worked with two ISO-certified Nigerian yards for the fabrication of mud tanks and pipe racks used in client operations.
We also sourced steel plates and fittings from indigenous suppliers, ensuring that a significant portion of our project budget remains in-country. These collaborations support the growth of local manufacturing hubs and stimulate job creation in related sectors.
In our service delivery, we prioritize partnerships with Nigerian-owned and operated companies across disciplines such as logistics, instrumentation, engineering, and HSE. These joint ventures create mutual growth and help deepen local market expertise.
One such partnership in 2024 helped us successfully deliver a complex well servicing contract in Delta State using 100% Nigerian personnel and equipment. We also mentor emerging Nigerian subcontractors to help them scale their operations and meet quality benchmarks.
We utilize the Nigerian Content Intervention Fund (NCIF) to support our liquidity and growth in alignment with the Act. In 2024, Terrawatt accessed NCIF loans to expand its fleet of Nigerian-assembled rigless well intervention units.
The funding enabled us to create new jobs, increase project competitiveness, and meet Nigerian ownership standards. By leveraging this fund, we avoided foreign loans and contributed to the growth of Nigerian financial institutions involved in fund disbursement.
Terrawatt actively participates in the Nigerian Oil and Gas Opportunity Fair (NOGOF), where we showcase our capabilities and explore partnerships on upcoming projects. In 2024, we presented case studies on cost-effective, locally sourced interventions for marginal field operators.
These fairs serve as a platform to align with operators, regulators, and communities while reinforcing our commitment to local sourcing. Attendance at NOGOF also keeps us informed of future demand forecasts and local capacity expectations.
Terrawatt supports technology incubation programs like the NOGTECH Hackathon to promote local innovation in the energy sector. In 2024, we mentored a startup that developed an indigenous leak detection system for pipelines.
We provided them with testing support and helped them prepare for market integration. Supporting local tech enhances self-sufficiency and ensures that Nigerian companies are not left behind in the energy transition.
Our local content compliance also includes socioeconomic investments in host communities. We prioritize local hiring, vendor engagement, and training within communities surrounding our operational bases in Rivers and Delta States.
In 2024, we trained over 50 local youths in electrical and mechanical maintenance through a certified vocational scheme. These efforts help reduce unemployment, promote peace, and ensure that communities see direct benefits from our presence.
We maintain an internal local content compliance unit responsible for coordinating documentation, audits, and staff education. The unit conducts monthly reviews to ensure all departments meet NOGICD requirements.
In 2024, we underwent two NCDMB compliance audits and passed both with high marks. This structured approach ensures that our compliance is consistent and verifiable.
Despite our success, we continue to face challenges related to limited in-country capacity for highly specialized equipment and services. Some Nigerian vendors still require technical and financial support to meet project delivery timelines.
To manage this, we often invest in vendor training and stagger project timelines to accommodate their learning curves. There are also tensions in balancing cost efficiency with local procurement in a competitive bidding environment.
Following the 2024 Presidential directives for stricter local content enforcement, Terrawatt undertook a full audit of its contractor database and sourcing protocols. We eliminated non-compliant vendors and ensured that all new tenders were issued with clear local content benchmarks.
Contracts now include KPIs tied to Nigerian value addition, which are reviewed during performance evaluations. These adjustments have improved our overall compliance profile.
As Nigeria works toward achieving 70% local content value retention by 2027, Terrawatt remains committed to contributing significantly to that goal. Our current retention rate, based on 2024 internal audits, stands at 62%, up from 54% in 2023.
We plan to achieve 70% by the end of 2026 through deeper integration of local vendors and capacity building. This ambition aligns with the NCDMB's roadmap and the nation's broader industrialization agenda.
We remain mindful of the need to balance local content mandates with global competitiveness and trade obligations. In line with World Trade Organization (WTO) principles, we ensure that our sourcing strategies remain transparent and quality-driven.
We do not compromise safety or standards in our quest to comply locally. Instead, we empower local suppliers to meet global benchmarks. This approach allows us to remain internationally competitive while being fully compliant with Nigerian regulations.
Terrawatt's commitment to local content is foundational to our business and national development strategy. Through proactive compliance, strategic investment, and stakeholder engagement, we continue to play a leading role in Nigeria's oil and gas servicing space.
We view local content not as a constraint, but as a competitive advantage that drives sustainability and innovation. As we look ahead, we aim to deepen our partnerships, scale indigenous manufacturing, and train even more Nigerians in critical technical roles.
Our goal remains clear: to build a truly Nigerian company delivering world-class solutions. Compliance with local content laws will continue to guide our future and define our legacy.