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. Developing local content in gabon g abon is aiming to become an emerging economy by 2025. The challenge for east africa is, therefore, how to maximize. Federal republic of nigeria implementation of the sdgs. Best practice for local content development strategy. A serious attempt was, however, made in 2010 with the promulgation of the nigerian oil and gas development. Regional trends in the middle east and north africa damilola s.
Integrate oil producing communities into the oil and gas value chain. The role of local content policy in local value creation in. 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. Local content level of intermediate purchases 9 figure 3. 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. 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. Nigeria that are rich in natural resources but whose oil and gas sector has traditionally operated in isolation. 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. Plot 20, osadolor mary crescent, chevy view estate, opposite chevron head office, lekki, lagos nigeria. Classification of local content policies by channel of intervention and transversality 60 figure 4.
Apart from capacity building, which 3t undertakes for its local staff on such practices, it also influxes a lot of foreign. The 17 sdgs are integrated that is, they recognize that action in one area will. 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. Developing local content through the gabonisation of. Local content development is critical for countries like. 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. 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. The stated aim of nigerian content local content policy in nigeria is the domiciliation of economic activity in nigeria. General nigerian content requirements nigeria lng home. This chapter gives an overview of the nigerian local content policy and the. As part of her strategy for maintaining the local content policy, preslyn resources limited engages the services of local subcontractor. 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.
For a start, the body should compel the cwc group to comply with the nigerian content act in all its activities in nigeria. Nigerian oil and gas industry content development act 2010 act no. Average local content offered for various bidding rounds. Nigeria is the worlds eight biggest oil exporter and relies on crude as its main foreign exchange earner. Local content and procurement requirements in oil and gas. March 2017 recent developments on nigerian content law in the. This explains the fanfare associated with the enactment into law of the nigerian local content bill. 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. The current climate of the industry has largely been influenced by the.
Local content management in the oil and gas industry 5. Local content in nigeria the guardian nigeria news. General nigerian content requirements nigeria lng home page. 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. Content plan to demonstrate compliance with local content requirements set out by the law. 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. 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. Nigerian content plan submitted by any operator or project. Ncdmb and the implementation of the ncdf 1% tax local.
The act further provides in its schedule a 50% threshold of nigerian content for legal services relating to project management and consulting services. 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. The training plan will include contractspecific training and estimated manhours. National action plan for the implementation of unscr 25. Foster measurement and implementation of local content. Thus, the focus of this paper is to briefly explain the local content act and its implication on tvet and the nigerian economy. Link oil and gas sector to other sectors of the economy. The policy is designed to build the capacity of indigenous firms and to provide more opportunities for participation in business. The nigerian oil and gas industry content development act of. Nigeria has also applied local content policy in other sectors. 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. 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. Noc became nigerian national petroleum corporation nnpc in 1977.
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. Local content meaning in the cambridge english dictionary. Many companies also have implemented their own local content policies. Pdf a conceptual model for local content development in. To qualify as a ghanaianindigenous company, the company must. For local communities, decent mining company jobs that are safe, stable and fairly compensated. This target is fully supported by the oil and gas companies operating in the country. The nigerian oil and gas industry has developed, focusing on increasing indigenous participation in the industry. Local content in oil and gas industry research papers. The targets for lc policy in increasing local content development were set progressively.
Local content is major change from importer to producer will be resisted globally and locally. An overview of the nigerian oil and gas industry local. Nigeria, local content also represents an attempt to move beyond the indigenisation policies of the 1970s. A plan for giving first consideration to services provided within nigeria with a list. Nigerian insurers can take advantage of local content act, okumagba. Nigerias local content marathon key strides, forward steps and challenges shell is the largest oil and gas company in nigeria. Every nigerian citizen young or old possesses a unique potential, this can only be better used depending on the awareness of opportunities. Conceptualizing tvet in most advance economies, industrialization most certainly emanate from tvet kutz, 2001.
The plan must demonstrate compliance with the nigerian content requirements of the act. Federal republic of nigeria implementation of the sdgs a. Olawuyi, senior visiting research fellow, oies and associate professor of law, hamad bin khalifa university, doha, qatar. The second phase of the plan will expand the requirement to indigenous oil and oil service companies. Leveraging local content decisions for sustainable development nigeria. 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. Local content development in the nigerian oil and gas. Local content ng is designed to aid you better understand and utilize your untapped benefits from local content development in nigeria. Why local content in africas extractive sector wont work.
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%. Nigerian insurers can take advantage of local content act. View local content in oil and gas industry research papers on academia. A novel concept, local content, in oil industry is gradually emerging. 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. Maximize participation of nigerians in oil and gas activities. National action plan for the implementation of unscr 25 and. 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. Tied to national agenda chairman governing council is member of fec and direct report to president. Nnpcs nigerian content vision is to transform the oil. Local content should be defined in terms of value addition in local country by local staff, local materials, local services. 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.
Local content management in the oil and gas industry 5day. Local content and procurement requirements in oil and gas contracts. Local content and skills development shell sustainability. Local content is the development of local skills, oil and gas technology transfer, and use of local manpower and local manufacturing. 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. 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. Regulation requiring companies to produce local content plans. This is geared to developing and improving local capacity and participation in the extractive industry and the overall improvement of the economy. 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. 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. Local content presentation nigeria regulatory compliance.
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. 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. Local content frameworks in latin america regional catalogue. What matters when it comes to adopting local content. Resourcerich countries are increasingly inserting requirements for local content local content provisions into their legal framework, through legislation, regulations, contracts, and bidding practices. Developing local content through the gabonisation of oil and gas is one area gabon is keen to. Details of first consideration given to nigerian goods and services b. To do this, gabon must boost its oil and gas sector, despite the fluctuating oil price and the countrys declining oil production. 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 plan must demonstrate compliance with the nigerian content requirements of. 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. Local participation refers to the level of ghanaian ownership in the oil and gas industry. The board is planning to create an annual nigerian.
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