The implementation of Nigeria’s Oil and Gas Content law is geared towards establishing facilities in Nigeria and ensuring that they are patronised so as to bring Nigerian jobs back home. Now a Board has been set up to supervise content development.
p>The implementation of Nigeria’s Oil and Gas Content law is geared towards establishing facilities in Nigeria and ensuring that they are patronised so as to bring Nigerian jobs back home. Now a Board has been set up to supervise content development.
A major outcome of the enactment of Nigeria's new Oil and Gas Content law is the setting up of the Nigerian Content Development and Monitoring Board (NCDMB), a body responsible for content regulation and which superintends content development activities. A former Group General Manager, Nigeria Content Division, of the NNPC, Mr. Ernest Nwapa, has already been appointed its Acting Executive Secretary.
Main Companies
Amongst the main companies represented on the board are Addax Petroleum, Cameron, Chevron, Daewoo Nigeria, DeltaAfrik, ExxonMobil, Integrated Logistic Services, M-I Nigeria Ltd, Nigerdock, Nigerian Agip Oil Companies, Oando, Saipem, Schlumberger, Shell and Total.
NCDMB is a regulatory Agency and so, is NOT an arm of NNPC. Before the Act became effective, matters pertaining to Nigerian Content were managed by the then Nigerian Content Division of NNPC. That Division has ceased to exist and its duties have been subsumed into the responsibilities of NCDMB. The Board has full responsibility for all matters pertaining to Nigeria content in both Upstream and Downstream sectors of the Oil & Gas industry.
NCDMB’s mandate is to implement the provisions of the Act, focusing mainly in the areas of:
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Training & employment of Nigerians;
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Establishment of critical facilities such as pipe mills, docking & marine facilities, pipe coating facilities;
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Promoting indigenous ownership of marine vessels, offshore drilling rigs, etc;
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Integration of indigenes and businesses residing in oil producing areas into mainstream of industry economic activity;
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Promoting services which support industry activities such as banking, insurance, legal, etc.
- Setting up audit procedures and conducting regular audits for purpose of monitoring and implementing the Act.
Mr Nwapa has projected that the Content Development Fund could generate US$100mn annually. The executive secretary stated that operating and service companies have started remitting the mandatory one per cent of every contract sum awarded in the industry since April 22, 2010 as provided by the Act.
Job creation
"Nigeria must retain substantial capacities from major projects, and Nigerians in senior positions in the industry must insist that provisions of the Nigerian Content Act be complied with to create capacity, jobs and opportunities for Nigerians," he said.
He further explained that with job creation now a priority of President Goodluck Jonathan's administration, the Board has pledged to create 300,000 direct and indirect jobs.
"The Fund will grow to $100mn per annum, especially as the Bank of Industry, Nigerian commercial banks and a host of international funding agencies have indicated interest in participating in the fund so as to make it robust," Nwapa said.
