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INTRODUCTIONThe Nigerian oil and gas sector is the primary source of revenue for the government and contains an industry value of roughly $20 billion. It is Nigeria’s main source of export and foreign exchange earnings and as well a major employer of labor. A combination of this wreck in crude oil price to under $50 per barrel and post-election restiveness in Nigeria’s Niger-Delta region resulted in the declaration of force majeure by many international oil companies (IOC) functioning in Nigeria. Although the above occurrences contributed to the haul in the Industry, possibly, the major cause is that the unfruitful presence of the Federal Government of Nigeria (FGN) as the dominant participant in the Business (possessing roughly 55 to 60 percent interest in the OMLs).While, it is unfortunate that many IOC’s playing at the Industry divested their interests in petroleum mining leases (OMLs) and oil prospecting leases (OPLs) given to them by the FGN; on the reverse side, it’s a positive development that indigenous businesses obtained the divested interests in the affected OMLs and OPLs. Hence, domestic investors and companies (Nigerians) have the chance and significant part to play in the sustainable growth and development of Nigerian oil and gas market.This paper x-rays the roles due to Nigerians and the scope they’ve successfully discharged same. It also looks at the challenges which are inhibiting the sustainable development of the business. This paper finds that the main factor restricting domestic investors from efficiently playing their role in the sustainable development of the industry is the overbearing presence of the FGN in the Industry and its own inability to meet its own responsibilities as a dominant player in the Industry.At the first part, this paper discusses the roles of domestic investors, and in the second area, this paper reviews the challenges and factors that inhibit domestic investors in sustainably performing the identified roles.The functions domestic investors play in promoting sustainable development in the oil and gas industry include:Providing CapitalEnhancing Personnel and Technical Capacity DevelopmentPromoting Technological Capability and TransferSupporting Development and Research Supplying Risk InsuranceCapital Injection/ProvisionOil and gas jobs and services are capital intensive. Hence, financial capacity is vital to drive growth in the industry. Given the increased involvement of domestic investors in Nigeria’s oil and gas business, of course, they have been saddled with the responsibility to provide the capital required to drive business growth.At 2012, Nigerians had acquired from IOC’s roughly 80 of their OMLs/OPLs (30% of the licences) and roughly 30 of those petroleum marginal fields awarded in the business. In the midstream industry of the business, there are lots of indegenous owned transport boats and storage facilities; and at the downstream industry, domestic investors are actively engaged in the marketing and sale of refined crude petroleum and its by-products throughout the filling stations located across Nigeria, which filling stations are largely owned and funded by Nigerians.Capital is also needed to fund training and education of Nigerians from the several sectors of the Industry. Instruction and training are critical in fulfilling the gaps in the nation’s domestic technological and technical know-how. Thankfully, Nigeria now has associations solely for oil and gas industry related studies. Furthermore, native oil and gas companies, in partnership with IOC’s, today tackle pieces of training for Nigerians in various areas of the business.However, funding from the national investors is not adequate compared to the financial needs of the business. This inadequacy isn’t a function of financial incapacity of domestic investors, but on account of the overbearing presence of the FGN throughout the Nigerian National Petroleum Corporation (NNPC) as a player in the industry; along with regulatory bottlenecks like pump price regulations that inhibit the injection of capital from the downstream sector.Oil and gas jobs tend to be highly technical and complicated. Because of this, there’s a high demand for technically proficient professionals. To sustain the growth of the industry, domestic investors need to fill the potential gap through hands-on experience in the execution of industry projects, operation or management of already existing facilities and getting the mandatory international certifications such as ISO certificate 2015 and American Society of Mechanical Engineers (ASME) certification. There are currently domestic companies which undertake projects such as exploration and production of crude petroleum, engineering procurement construction, drilling, manufacture, installations, oil by-products shipping and logistics, offshore fabrication-vessel building and repair, welding and craft sales and promotion. Lately, Nigerians participated in the in-country fabrication of six modules of this Complete Egina Floating Production Storage Offloading (PSO) vessel and integration of these modules on the FPSO in the SHI-MCI lawn.Specialized Capacity and Move Technological capacity from the gas and oil industry is mostly related to managerial proficiency in project management and compliance, the assurance of international quality standards in project execution and operational upkeep. Hence to develop technological competency starts with in-country evolution of management abilities to grow the pool of skilled personnel. A specific research found there is a vast knowledge gap between domestic firms and IOC’s. And’that native oil companies suffered from basic lack of excellent management, limited compliance with international quality standards, and poor preventive and operational upkeep approaches, which lead to poor upkeep of oil centers.’To effectively play their role in enhancing the technological capability in the Industry, domestic firms began partnering with IOC’s in project construction and implementation and operational maintenance. For example, as stated earlier, domestic firms vie with an IOC in the effective completion of in-country manufacture of six modules of their Total Egina Floating Production Storage Offloading (FPSO) vessel and integration of the modules around the FPSO in the SHI-MCI yard. Other examples include: the very first assembled-in-Nigeria Subsea Horizontal Xmas Tree and the manufacture; installment of subsea equipment like flexible flowlines, umbilicals and jumpers on Agbami Phase 3 project; Setup of 32km 24″ Sonam into Okan NWP pipeline; the manufacture and load-out of the Okan PRP Topsides; Bridge Fabrication of Okan PRP coat, amongst others.It is common knowledge that since the enactment of this Oil and Gas Industry Content Development (NOGICD) Act at 2010, all projects executed across the sectors of the Business have had the active participation of Nigerians. The Act ensured an increase in technical and technological capabilities, but also a slow process of technology transfer in the IOC’s to Nigerians. The Act in its own Program reserved specific Industry services to domestic companies. The speed of participation and the quality of services of Nigerians has increased tremendously with the result that there are currently many nationally oil servicing firms.