The federal government of Nigeria has announced that it will allocate $10 billion worth of the total $18 billion in annual oil expenditure to indigenous oil and gas companies.

Announced by petroleum resources minister Diezani Alison-Madueke, the funding shakeup comes as part of the country's ambitious localisation programme, which is also designed to provide industry jobs to Nigerians through training and development.

The Nigerian Tribune reports that Ms Alison-Madueke also outlined plans to more than double the total revenue retained by Nigerian companies working in the oil and gas industry within four years.

Currently, Nigerian energy firms earn $4 billion in revenues from the oil and gas industry each year, but the government is committed to raising this to over $10 billion.

The country's localisation programme got underway earlier this year after the incorporation of the landmark Nigerian Oil and Gas Industry Content Development Act, which imposes strict limits on outsourcing and foreign ownership of oil and gas resources.

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