The statement was not unrelated to
Nigeria’s support of the efforts of the Organisation
of Petroleum Exporting Countries (OPEC) to optimise oil prices by employing
‘production freeze’ tactics to combat the oil glut. We commend the Minister for
displaying leadership by taking a clear stance at a time when the nation is in
dire need of economic direction. We also commend his patriotism and his
innovative ideas for our oil industry. Beyond fixing the global glut, however,
there is an urgent need to proffer original, home-grown policies as well as
ensuring that existing ones are strictly adhered to.
An urgent case in point is the Nigerian Oil and Gas Industry Content
Development law (NOGICD), more popularly known as Nigerian Local Content Law. The Nigerian local content Law is one
of the significant efforts in localising the management and control of the oil
and gas industry and was widely celebrated at inception. The Law, which
received presidential assent on the 2nd of April 2010 and created a framework
towards indigenous content also established the Nigerian Content Monitoring
Board which is charged with the responsibility to coordinate, monitor and
implement the local content Law.
The local content Law specifies that
Nigerian independent operators should be accorded “first consideration” in the
award of Oil and Gas-related contracts and that Nigerian service companies
should also be given “exclusive consideration” for contracts and services.
Industry watchers believe that an ideal and welcome scenario will be where
Nigerian companies are allowed to participate alongside international Oil
Majors. The local content Act, however, seems to have made very little impact.
There is very limited local participation in this vibrant sector that has the
potential to improve the standard of living and provide gainful employment for
Nigerians.
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