Vast financial investments have been made in the upstream crude-oil and natural-gas (CONG) sector in Nigeria, but have not resulted in significant benefits for most Nigerians. The associated major activities, e.g., exploration, drilling, production, well intervention and service provision remain primarily controlled and managed by foreign multi-national companies. Only minor contracts have been awarded to local contractors. Several factors, ranging from locally inadequate finance being available, corrupt local operators, lack of technical expertise and the conflicting attitudes of multi-national operators and local contractors have contributed to this. Yet, numerous opportunities are increasingly available for indigenous entrepreneurs and local contractors. To achieve good public relations, sustainability and better economic performances, a wiser balance between globalisation and localisation is needed! This study considers the impedances to achieving greater indigenous inputs to the CONG sector, with recommendations proffered with respect to what could be done to alleviate them. (c) 2005 Elsevier Ltd. All rights reserved.