Local Content Policy and Its Implications on Marginal Oil Fields Operations and the Nigerian Economy

The paper assesses local content policy and its implications on the operation of marginal oil fields and the Nigeria economy. The data for this study was obtained from secondary sources: literature review on economic development of marginal field operation and Nigerian local content act .Given the strategic importance of marginal field development and the significant expenditure that occurs in the business, which offer excellent opportunity for wealth creation within the Nigerian economy, the use of local content policy in marginal field operation is of strategic importance since it will lead to cost reduction thereby increasing the profitability of the marginal field projects. However local content policy is also associated with numerous challenges. The contribution of local content policy to marginal field operations over a wide range of countries exceeds that of all other productive factors. The finding shows that local content policy if properly implemented should lead to cost reduction in marginal field operation and job creation in the Nigerian economy.