Every nigerian citizen young or old possesses a unique potential, this can only be better used depending on the awareness of opportunities. Details of first consideration given to nigerian goods and services b. Nigeria has also applied local content policy in other sectors. 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.
Link oil and gas sector to other sectors of the economy. Regulation requiring companies to produce local content plans. Pdf a conceptual model for local content development in. Developing local content through the gabonisation of oil and gas is one area gabon is keen to. General nigerian content requirements nigeria lng home. Local content presentation nigeria regulatory compliance.
Many nigerians directly or indirectly linked with the oil industry all let of a sigh of relief as the new law was widely expected to create more opportunities for. Maximize participation of nigerians in oil and gas activities. National action plan for the implementation of unscr 25. Local content and procurement requirements in oil and gas contracts. Ncdmb and the implementation of the ncdf 1% tax local. The plan must demonstrate compliance with the nigerian content requirements of. Nigerian insurers can take advantage of local content act, okumagba. A serious attempt was, however, made in 2010 with the promulgation of the nigerian oil and gas development. Local content is major change from importer to producer will be resisted globally and locally. 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 adopted local content laws in relation to their gas and oil industries. In nigerias unrelenting pursuit and commitment to the ultimate realisation of the sdgs, i am delighted to report that all our thirtysix state governments, along with the federal capital territory abuja, have replicated the same organisational and institutional structure within.
This explains the fanfare associated with the enactment into law of the nigerian local content bill. A nigeria content development and monitoring board the board has been established and vested with the responsibility to implement the provisions of the act, make procedural guidelines and monitor compliance by operators within the oil industry. A plan for giving first consideration to services provided within nigeria with a list. The executive secretary of the nigerian content development and monitoring boardncdmb mr simbi wabote, on tuesday announced his organisations plan to create about 300,000 job opportunities. Why local content in africas extractive sector wont work. Local content should be defined in terms of value addition in local country by local staff, local materials, local services. Local content policy in nigeria started in 1971 through the establishment of the national oil company noc to promote the indigenisation policy in the oil and gas sector. Plot 20, osadolor mary crescent, chevy view estate, opposite chevron head office, lekki, lagos nigeria. It is the operator of a joint venture between the governmentowned nigerian national petroleum corporation 55%, shell 30%, elf petroleum nigeria limited a subsidiary of total 10%, and agip 5%. National action plan for the implementation of unscr 25 and. Apart from capacity building, which 3t undertakes for its local staff on such practices, it also influxes a lot of foreign. 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. Nnpcs nigerian content vision is to transform the oil and gas industry into the economic engine for job creation and national growth by developing incountry capacity and indigenous capabilities.
Nigeria that are rich in natural resources but whose oil and gas sector has traditionally operated in isolation. This target is fully supported by the oil and gas companies operating in the country. The targets for lc policy in increasing local content development were set progressively. Local content in nigeria the guardian nigeria news. Preslyn resources limited is committed to the nigeria local content policy of the federal government of nigeria and therefore, organizes her operations and activities accordingly. The national content policy therefore seeks to enhance the opportunities, address challenges and constraints, describe the necessary institutional framework to coordinate the development, implementation and monitoring of national content, and provide. The enactment of the nigerian oil and gas industry development act in april, 2010 was greeted with much fanfare within the circles of nigerian businesses and professionals plying their trade in the nigerian oil and gas industry. The current climate of the industry has largely been influenced by the. Local content management in the oil and gas industry 5day. Local content development in the nigerian oil and gas. For a start, the body should compel the cwc group to comply with the nigerian content act in all its activities in nigeria. This is geared to developing and improving local capacity and participation in the extractive industry and the overall improvement of the economy. The 17 sdgs are integrated that is, they recognize that action in one area will. In this way a greater proportion of the work will be done in nigeria with active participation of all sectors of the economy and ultimately.
Regional trends in the middle east and north africa damilola s. For local communities, decent mining company jobs that are safe, stable and fairly compensated. This chapter gives an overview of the nigerian local content policy and the. The role of local content policy in local value creation in. Resourcerich countries are increasingly inserting requirements for local content local content provisions into their legal framework, through legislation, regulations, contracts, and bidding practices. Nnpcs nigerian content vision is to transform the oil.
This gl o macs local content management in the oil and gas industry training seminar will discuss the business benefits of developing the primary components of a local content strategy, including building local workforce and supplier capacity, integrating local. Nov 28, 2016 one of the first steps in this charge is to develop robust real local content local content referring to homegrown labour, services and resources, all things that nigeria has in swathes but. Stimulating direct local employment executive summary when a mining company arrives in an area, the promise of local employment is central to public debate in leastdeveloped, developing and developed countries alike. Foster measurement and implementation of local content. An overview of the nigerian oil and gas industry local. One of the first steps in this charge is to develop robust real local content local content referring to homegrown labour, services and resources, all things that nigeria has in swathes but. Implementation of local content in nigeria in a related development, the senate of the na, in september 2016, mandated its committee on petroleum upstream and gas to conduct a public hearing to investigate the implementation of local content in nigeria, with a view to determining the degree of compliance with the nogicda by industry operators. In line with the nigerian content policy of the government of nigeria, 3t worldwide qri nigeria limited henceforth referred to as 3t has put in a nigerian content policy so that it can impart its world renowned best practices and knowledge to the nigerian nationals. The nigerian society is not at war but is not free from various conflicts. Thus, the focus of this paper is to briefly explain the local content act and its implication on tvet and the nigerian economy. The national content policy therefore seeks to enhance the opportunities, address challenges and constraints, describe the necessary institutional framework to coordinate the development, implementation and monitoring of national content, and provide the necessary monitoring and evaluation framework.
The nigerian oil and gas industry content development act of. March 2017 recent developments on nigerian content law in the. Classification of local content policies by channel of intervention and transversality 60 figure 4. Local content and procurement requirements in oil and gas. Developing local content in gabon g abon is aiming to become an emerging economy by 2025. A novel concept, local content, in oil industry is gradually emerging. The policy is designed to build the capacity of indigenous firms and to provide more opportunities for participation in business. Federal republic of nigeria implementation of the sdgs a. Sep 04, 2015 this is commendable in view of the previous limited attempts by government at developing a local content frame work for the industry. East africa to avoid the imposition of stringent local content targets on oil and gas companies operating in the region and, instead, adopt an incremental and compartmentalized approach.
Tied to national agenda chairman governing council is member of fec and direct report to president. Nigerias local content marathon key strides, forward steps and challenges shell is the largest oil and gas company in nigeria. Developing local content through the gabonisation of. Leveraging local content decisions for sustainable development nigeria. Local content development is critical for countries like. The local content act defines local content as the quantum of composite value added to or created in nigeria through utilization of nigerian resources and services in the petroleum industry resulting in the development of indigenous capability without compromising quality, health, safety and environmental standards. Conceptualizing tvet in most advance economies, industrialization most certainly emanate from tvet kutz, 2001. To qualify as a ghanaianindigenous company, the company must. Average local content offered for various bidding rounds. This is reflected through the nigerian government initiative of increasing local content and ensuring that indigenous companies have a greater part in developing oil and gas assets. The sustainable development goals sdgs, also known as the global goals, were adopted by all united nations member states in 2015 as a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity by 2030. Local content in line with the nigerian content policy of the government of nigeria, 3t worldwide qri nigeria limited henceforth referred to as 3t has put in a nigerian content policy so that it can impart its world renowned best practices and knowledge to the nigerian nationals.
Nigerian insurers can take advantage of local content act. Local content in oil and gas industry research papers. Local content level of intermediate purchases 9 figure 3. Local content ng is designed to aid you better understand and utilize your untapped benefits from local content development in nigeria. Local content in major contract tenders the sierra leone act carries a slightly higher risk of cost escalation than the equivalent provisions in the nigeria act, limited to a maximum of 5% of the lowest bid price in exchange for a materially higher quality local content plan compared to 1% for the nigeria act. Local content is the development of local skills, oil and gas technology transfer, and use of local manpower and local manufacturing. The act further provides in its schedule a 50% threshold of nigerian content for legal services relating to project management and consulting services. Content plan to demonstrate compliance with local content requirements set out by the law. Many companies also have implemented their own local content policies. All operators required to submit a nigerian content plan at the time of the bid promotion of the nigerian content is the major criteria for awards of licenses plans nigerian content plan required explaining how first consideration will be given to nigerians and nigerian goods and services.
Local content refers to the quantumpercentage of locally produced materials, personnel, financing, goods and services rendered to the oil industry and which can be measured in monetary terms. Local content meaning in the cambridge english dictionary. Nigeria is the worlds eight biggest oil exporter and relies on crude as its main foreign exchange earner. Integrate oil producing communities into the oil and gas value chain. The stated aim of nigerian content local content policy in nigeria is the domiciliation of economic activity in nigeria. The second phase of the plan will expand the requirement to indigenous oil and oil service companies. To do this, gabon must boost its oil and gas sector, despite the fluctuating oil price and the countrys declining oil production. A survey of the literature on local content policies in the oil and gas industry in east africa chilenye nwapi summary although oil and gas exploration has been going on in east africa for decades, until recently exploration activities grew more slowly compared to other regions in africa.
The nigerian local content development policy local content policy in nigeria started in 1971 through the establishment of the national oil company noc to promote the indigenisation policy in the oil and gas sector. Best practice for local content development strategy. Federal republic of nigeria implementation of the sdgs. Noc became nigerian national petroleum corporation nnpc in 1977.
Nigerian content plan submitted by any operator or project. All operators required to submit a nigerian content plan at the time of the bid. What matters when it comes to adopting local content. The challenge for east africa is, therefore, how to maximize. The plan must demonstrate compliance with the nigerian content requirements of the act.
Local content management in the oil and gas industry 5. The nigerian oil and gas industry has developed, focusing on increasing indigenous participation in the industry. Nigerian oil and gas industry content development act 2010 act no. Nigeria, local content also represents an attempt to move beyond the indigenisation policies of the 1970s. The training plan will include contractspecific training and estimated manhours. As part of her strategy for maintaining the local content policy, preslyn resources limited engages the services of local subcontractor. Local content and skills development shell sustainability. General nigerian content requirements nigeria lng home page.
Olawuyi, senior visiting research fellow, oies and associate professor of law, hamad bin khalifa university, doha, qatar. Local participation refers to the level of ghanaian ownership in the oil and gas industry. View local content in oil and gas industry research papers on academia. Local content frameworks in latin america regional catalogue.
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