The Senate Joint Committee on Petroleum Resources (Upstream) and Gas Resources has commenced investigation into the implementation of local content in the oil and gas industry in the country.
Opening the session of an investigative hearing on the issue last week in Abuja, President of the Senate, Bukola Saraki, said the National Assembly was concerned with the level of implementation of local content in Nigeria.
Saraki, who was represented by the Leader of the Senate, Sen. Ahmed Lawan, said that most multi-national companies had yet to substantially comply with the provisions of the law.
He said that under the Nigeria Oil and Gas Industry Content Development Act, investors were mandated to consider Nigerian companies as an important element in their project development and management.
“The Nigeria content in this context refers to firms registered in Nigeria in accordance with the provisions of the Companies and other Allied Matters Act.
“The National Assembly is challenged to ensure that the oil and gas industry provides an avenue where more jobs and opportunities are given to qualified local experts in the industry.
“We are here to discuss to know where we are today in the implementation of the Nigeria Oil and Gas Industry Content Development Act since it was enacted in 2010.
“We are also here to know where we have made progress and identify the gaps and where we need help to up the game.’’
Saraki explained that a rich local content was one of the most efficient ways to stimulate the economy for a multiplier effect in different sectors.
To achieve that, he said that full implementation of the Act was necessary because it would help in creating employment among other benefits.
He called on the stakeholders at the hearing to make robust contributions that would propel local operators to have increased capacity, industry knowledge and expertise.
In his remarks, Sen. Omotayo Alasoadura, Chairman, Joint Committee on Petroleum Resources (Upstream), said that the committee was determined to find lasting solution to the problem.
He recalled that the Senate, at its sitting on Sept. 27, 2016, mandated the committee to carry out an extensive investigation into the level of compliance by multi-national companies with the law in the industry.
“The Senate, arising from a debate on the need to ascertain the degree of local content in the industry, mandated the committee to determine compliance with the Act by operators,’’ he said.
Mr Simbi Wabote, Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), said that the board had made tremendous progress since enactment of the Act in 2010.
He said that the board was currently implementing a 10-year strategic roadmap anchored on delivering five pillars of sustainable local content.
Wabote explained that the board had a target of achieving 70 per cent of local content in the next 10 years.
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