Many African countries after attaining political independence sought to acquire economic independence by taking ownership and control of their natural resources for economic development. Nigeria has grappled with diverse development policies, one of which is the local content policy in the oil and gas industry. The sector generates about 95% of the total export revenue and about 80% of the total national income. However, the portion of domestic expenditure out of the annual 8billion Naira expenditure in servicing its operation is low. Hence, the local content policy targets over 70% of this expenditure to be domiciled locally. This paper examines the extent to which local businesses have fared in achieving this target in championing the course for higher indigenous participation in the sector and value addition for the nation. It also examines the effects of local content policy on business and economic development in Nigeria as contained in the Nigeria oil and gas industry content development Act of 2010. Findings revealed that marginal inputs were recorded in the area of in-country fabrication projects delivered by indigenous local companies due to systemic challenges. The paper concludes that these challenges have continued to hinder a complete delivery of the objective of the local content policy. The paper recommends among others, that the local content act should be amended to embrace other important sectors and boost local content business in Nigeria. Keywords: Local Content Policy, Business, Economic Development.