The ncmb has also been given the mandate to certify companies to ensure compliance with the local content act. Ayodele oni, said the idea of the enactment of the local content act was a step in the right direction. Simbi wabote talks on how to improve nigeria s local content duration. The act further provides in its schedule a 50% threshold of nigerian content for legal services relating to project management and consulting services. To do this, gabon must boost its oil and gas sector, despite the fluctuating oil price and the countrys declining oil production. Local content policies and petrodevelopment in subsaharan africa. Is nigerian content act indigenising the oil industry. He has also worked in nigeria in various capacities as sarbanesoxley act. The nigerian content act was signed into law on april 22, 2010, thus signaling the first most significant achievement of president jonathan after his reelection. It started from the precolonial era 1945 of administration where the kings, chiefs and elders held sway over the governance of their respective domains. Berkeley legal the impact of the local content act on. Commencement be it enacted by the national assembly of the federal republic of nigeria as follows. Nigerias local content marathon key strides, forward steps and challenges igo weli is general manager, nigerian content development for shell companies in nigeria. The 1976 local government reforms was the third in the series of the local government reforms ever contemplated in the history of nigeria local government.
The nigerian content monitoring board ncmb was established as the regulatory body responsible for monitoring, coordinating and implementing the provisions of the local content act. The stated aim of nigerian content local content policy in nigeria is the domiciliation of economic activity in nigeria. The policy is designed to build the capacity of indigenous firms and to provide more opportunities for participation in business. But private sector led initiatives need to be grounded in the overall local content strategy of the government. Developing local content through the gabonisation of. This act sets out specific work scopes that must be performed in nigeria and it guarantees fair access to foreign companies. The local content law seeks to increase indigenous participation by prescribing a minimum threshold for the use of local services and promoting the employment of nigerian staff in the industry. Integrate oil producing communities into the oil and gas value chain. Local content provisions in the petroleum industry bill d ill imposes an obligation on the nigerian government to promote the use of indigenous companies in the petroleum industry empowers the petroleum inspectorate to revoke a license, permit etc if nigerian local content law is not complied with repeats employment provisions of.
Section 3 1 of the act provides that nigerian independent operators5 shall be given first consideration in the award of oil blocks, oil field licences, oil lifting licences and in all projects for which contract is to be awarded in the nigerian oil and gas industry. Nigerias local content legislation as implicated in international investment law with respect to the interests of foreign investors. Nigerian content monitoring board the act establishes the nigerian content monitoring board the bdboard whi hhich is theregultlatory agency vestdted with the responsibility of regulating local content. Nigerian oil and gas industry content development act 2010 nigeria, hereinafter lca. The local content act was enshrined into nigerian law on the 22nd of april 2010. Dec 19, 20 section 3 1 of the act provides that nigerian independent operators5 shall be given first consideration in the award of oil blocks, oil field licences, oil lifting licences and in all projects for which contract is to be awarded in the nigerian oil and gas industry. Conceptualizing tvet in most advance economies, industrialization most certainly emanate from tvet kutz, 2001. Oil and gas industry content development act1, nogid act or local ontent act governing the oil and gas industry and makes it mandatory that first consideration is given to the use of nigerian goods and services in the nesi.
The role of local content policy in local value creation in. Local content in nigeria the guardian nigeria news. The nigerian oil and gas industry content development act 2010 was therefore signed into law on april 22 nd 2010 and aims to increase indigenous participation in the oil and gas industry by prescribing minimum thresholds for the use of local services and materials and to promote the transfer of technology and skill to nigerian labour in the. Comprehensive local content framework for the oil and gas sector nigeria is one of the few countries having enacted a piece of legislation dedicated to local content the act. Public regulation of the oil and gas industry in nigeria. Local content in oil and gas industry research papers.
Developing local content in gabon g abon is aiming to become an emerging economy by 2025. Petroleum local content and local participation regulations, 20 in exercise of the power conferred on the minister responsible for energy by section 22 of the petroleum commission act, 2011 act 821, these regulations are made this 5th day of july, 20. Local content presentation nigeria regulatory compliance. Making oil work in angola, nigeria and the gulf of guinea. Nigeria has also applied local content policy in other sectors. Nigerian oil industry, including the constitution of nigeria 1999, land use act,4 petroleum act,5 associated gas reinjection act,6 environmental impact assessment act eia,7 oil pipelines act,8 petroleum act,9 hydrocarbon oil refineries act,10 harmful waste special criminal provisions act11 and petroleum drilling and production regula. Local content is major change from importer to producer will be resisted globally and locally. The policy will also bring together the provisions relating to the promotion of local content in the various related policies and laws such as the feeder roads policy, the petroleum act, the mines and minerals act 2009, the business startup act amended 2007 and the national public procurement act. The nigerian oil and gas industry content development act.
Pdf compendium of all lawscategories also available email. Local content frameworks in latin america regional catalogue. The nigerian oil and gas industry content development act the act is designed to enhance the level of participation of nigerians and nigerian companies in the countrys oil and. Gas industry content development act 2010 lists targets for. View local content in oil and gas industry research papers on academia. How nigerians circumvent local content policy vanguard news.
Pdf local content policy and smes sector promotion. It started from the precolonial era 1945 of administration where the kings, chiefs and elders held sway over the governance of. Sep 04, 2015 the local content law seeks to increase indigenous participation by prescribing a minimum threshold for the use of local services and promoting the employment of nigerian staff in the industry. Pdf local content policy and entrepreneurs in the nigerian oil.
In this article, the writer makes a succinct analysis of the provisions of the nigerian local content act and argues that an antidote has been found for. The targets for lc policy in increasing local content development were set progressively. Therefore, it was concluded that the nigerian local content act adds value to technical and vocational education and training tvet in nigeria. Nigerias recent efforts to pass local content legislation with stringent targets and stiff penalties have. More importantly, they seek to encourage nigerian content in all projects, operations. Gas industry content development act cda in 2010 ramdoo, 2016. Supporting local employment and a competitive and sustainable local industry goes well beyond the remit of the corporate social responsibility agenda, requiring industrywide collaboration and multistakeholders involvement. Maximize participation of nigerians in oil and gas activities. A key objective is to increase the nigerian content meaning the quantum of composite value added to.
May 10, 2016 how nigerians circumvent local content policy. The role of local content policy in local value creation. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. Hydrocarbons law, article 71, establishes that at least 75% of staff at. Nigerias story of local content interventions in the oil industry. This act sets out specific work scopes that must be performed in nigeria and. Many companies also have implemented their own local content policies. Manufacturers association of nigeria local content group. This need is equally expressed in nigerias desire to domicile a substantial. Berkeley legal the impact of the local content act on the. Documentation to demonstrate that the entity is a nigerianregisteredowned company.
The act establishes a comprehensive local content regime that enshrines legal measures which promote the patronage of nigerian products and services by operators in the nigerian oil and gas industry. The federal government of nigeria recently passed the nigerian oil and gas industry content development act 2010 nca into law with the objective of fostering the development of indigenous service providers and utilization of nigerian goods thereby creating economic linkages between the oil and gas industry, which had hitherto functioned as an enclave economy, and the wider nigerian. Nigeriadeveloping local capacity through compliance awareness our sole intention is to drive the nigerian local content awareness to a larger audience with the application of strategic tools, to enable the nigerian citizen identify the need for a deliberate utilization and development of nigerian capacity which will match. Sustainable training, attachment and employment opportunities for nigerians in nigeria. Sep 22, 2014 the recent announcement of the resolution of the long drawn legal battle between lagos deep offshore logistics base ladol and samsung heavy industries ltd brews hope for the future of local oil industries and an indication that nigerias local content act may be achieving some of its goals. An overview of the nigerian content development act 2010 free download as pdf file. Thus, the focus of this paper is to briefly explain the local content act and its implication on tvet and the nigerian economy. Nigerian oil and gas industry content development act, 2010. Foster measurement and implementation of local content. The nigerian content simply focuses on the promotion of value addition in nigeria through the utilization of local raw materials, products and services in order to stimulate overview of the nigerian content. Thousands of nigerians benefitting from the local content act. Wigwe other private sector coalition step up complimentary efforts to free nigeria. Nigerian content development bill 2005a bill to make provi.
From an analysis of the sector, the local content act seems to have made very little impact. The local content law seeks to increase indigenous participation by prescribing minimum thresholds for the use of local services and to promote the employment of nigerian staff in the industry. The enactment of the nigerian oil and gas industry content development act, no. The nigerian government also deemed it necessary to design and sign into law the nigerian content act which provides for the development of. In the cement sector, nigeria has achieved a significant level of backward integration, with more than 95% of the materials used for cement production in nigeria sourced locally as a result of the industrys 2002 backward integration policy. One major milestone for the nigerian oil and gas industry was the enactment of the nigerian oil and gas industry content development act in 2010. Examining local content law and policy in the oil and gas industry, this book uses nigeria as a primary case study, comparing its approach to countries such as brazil and norway which have also. The nigerian state has been faced with various economic, social, political, educational, and development problems in all sectors of the nigerian economy. Local content meaning in the cambridge english dictionary. The nigerian oil and gas industry content development act the act is designed to enhance the level of participation of nigerians and nigerian companies in the countrys oil and gas industry.
Sierra leone local content policy humanitarianresponse. The recent announcement of the resolution of the long drawn legal battle between lagos deep offshore logistics base ladol and samsung heavy industries ltd brews hope for the future of local oil industries and an indication that nigerias local content act may be achieving some of its goals. Ncdmb act as facilitator, bringing together a broad array of. Overview of the nigerian oil and gas industry content. The nigerian oil and gas local content regime and its non. Nigeria, local content also represents an attempt to move beyond the indigenisation policies of the 1970s. Key provisions of the act recently, the president of the federal republic of nigeria signed the nigerian oil and gas industry content development bill into law. Act the nigerian content act or nogicd act in 2010, significant progress has been made. Their policy choices today are not only more limited to free trade and. The relevant country experiences of nigeria, botswana, mozambique, brazil.
The key term in the above provision is first consideration. Nigerian content plan section 7 of the act states as follows. Kenya has realised the need to promote local content in its oil and gas industry hence the reason why the concept of local content has been legislated through sections 50, 51 and 52 of the recently enacted petroleum act 2019. Economic development and the utility of local content. Overview of the nigerian local content act the act which takes precedence over all other existing enactments and laws pertaining. Developing local content through the gabonisation of oil and gas is one area gabon is keen to. The board shall implement the provisions of the bill with a view to ensuring a measurable and continuous growth in nigeria content. Simbi wabote talks on how to improve nigerias local content duration.
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