The local content law seeks to increase indigenous participation by prescribing minimum thresholds for the use of local services and to promote the employment of nigerian staff in the industry. The act has been instrumental to the promotion of the development and utilization of indigenous capacities in nigeria, and we expect that the progress made will be consolidated for. May 01, 2017 when the local content act received presidential assent on april 2, 2010, many hailed it as as one of the significant developments in localising management and control of the oil and gas industry. The nigerian oil and gas industry content development act 2010 lists targets for progressive increases in local content. Local content ng is designed to aid you better understand and utilize your untapped benefits from local content development in nigeria. The nigerian oil and gas local content regime and its non. Jul 28, 2010 the local content act 2010 enactment, enforcement and matters arising preliminary. Ghana began working on local content policies since 2010. The enactment of the nigerian oil and gas industry content development act, no.
One major milestone for the nigerian oil and gas industry was the enactment of the nigerian oil and gas industry content development act in 2010. Thus, the focus of this paper is to briefly explain the local content act and its implication on tvet and the nigerian economy. The new nigerian oil and gas industry content development act. The ncmb has also been given the mandate to certify companies to ensure compliance with the local content act. Every nigerian citizen young or old possesses a unique potential, this can only be better used depending on the awareness of opportunities. Abstract the passage into law of the nigerian local content bill is one of the significant developments for domesticating the oil and gas industry. Pdf a critical appraisal of enforcement of nigerian oil and. The hype, the hope and the reality joseph nna emeka nwaokoro abstract nigeria s recent efforts to pass local content legislation with stringent targets and stiff penalties have drawn widespread attention, spurred ongoing debate and prompted numerous international workshops and seminars. These regulations are akin to the nigerian oil and gas industry content development act1, nogid act or local ontent act governing the oil and gas industry and makes it mandatory that first. Tax implications of the nigerian oil and gas industry content. 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.
Kentebe takes over as exec sec of nigerian content board. The nigerian content simply focuses on the promotion of value addition in nigeria through the utilization of local raw materials, products and services in order to stimulate overview of the nigerian content. Nigeria developing 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. The nigerian one percent and the management of national oil wealth through nigerian content. Almost three years after the passage of the landmark nigerian oil and gas industry content development. 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. An overview of the nigerian local content act a presentation given at the africa energy week conference. Act the nigerian content act or nogicd act in 2010, significant progress has been made. The impact of the nigerian content law thisdaylive. Berkeley legal the impact of the local content act on the. Foster measurement and implementation of local content. The local content policy objective and the overall obligation imposed in. This act sets out specific work scopes that must be performed in nigeria and it.
Nigeria has long experience of local content policy in the oil and gas sector. In 2010, however, the administration of then acting president goodluck. Analysis of the nigerian oil and gas industry content act 2010. The role of local content policy in local value creation. The local content act, 2010 politically correct part 2. Commencement be it enacted by the national assembly of the federal republic of nigeria as follows. Centre for public policy alternatives cppa, 20 online. The local content policy action started in 1971 through the establishment of the. Documentation to demonstrate that the entity is a nigerian registeredowned company. Key provisions of the act recently, the president of the federal republic of nigeria signed the nigerian oil and gas industry content development bill into law. Documentation to demonstrate that the entity is a nigerianregisteredowned company.
Local content is major change from importer to producer. Noc became nigerian national petroleum corporation nnpc in 1977. Therefore, it was concluded that the nigerian local content act adds value to technical and vocational education and training tvet in nigeria. Each sub activity area has a percentage of lc value ranging from 30% to. The act among other things, strives to build local capacity, increase value creationaddition in country, and defines minimum nigerian content nc value for particular goods and services. These guidelines shall form part of the extant insurance regulatory and supervisory tools andshall beread inconjunction withtheprovisions ofthe insurance actaswellas other regulations, notices and circulars that the commission may issue from time to time. Requirement under nogicd act and cabotage for nigerian equity ownership. The local content law seeks to increase indigenous participation by prescribing a minimum threshold for the use of local services and promoting.
In africa, the government of nigeria implemented the nigerian oil and gas industry content development act in 2010 to boost local participation in the oil and gas industry atsegbua, 2012. Overview of the nigerian oil and gas industry free download as powerpoint presentation. The act mainly focusses on the development of nigerian content in. The local content law seeks to increase indigenous participation by prescribing minimum thresholds for the use of local services and to promote. Gas industry content development act 2010 lists targets for progressive. Nigerian oil and gas industry content development act, 2010. An overview of the nigerian content development act 2010 free download as pdf file. The nogicd act 2010, has a schedule of 17 categories of activity areas which are further broken down into a total of about 284 sub activity areas. Overview of the nigerian oil and gas industry natural. This nigerian local content act takes precedence over all other existing enactments. An overview of the nigerian oil and gas industry local. Tied to national agenda chairman governing council is member of fec and direct report to president. In this article, the writer makes a succinct analysis of the provisions of the nigerian local content act and argues that an antidote has been found for.
This need is equally expressed in nigerias desire to domicile a substantial. This has brought about a significant shift in ensuring an increase in indigenous participation within the industry and therefore trying to achieve the. The nigerian oil and gas industry content development act 2010 was therefore signed into law on april 22 nd 2010 and aims to increase indigenous participation in the oil and gas industry by prescribing minimum thresholds for the use of local services and materials and to promote the transfer of technology and skill to nigerian labour in the. Department of petroleum resources, dpr, labour clause provision, local content act, local content policy, nigerian content division, nigerian oil and gas industry content development bill, nnpc, oil and gas. Overview of the nigerian oil and gas industry content. A serious attempt was, however, made in 2010 with the promulgation of the nigerian oil and gas development.
The nigerian content act was signed into law on april 22, 2010, thus signaling the first most significant achievement of president jonathan after his reelection. The nigerian oil and gas industry content development act 2010 the act seeks to increase indigenous participation in the oil and gas industry by prescribing. Abstract the petroleum industry in nigeria is the largest industry and mean generator of gross domestic product gdp in the west african nation. Tax implications of the nigerian oil and gas industry.
Sep 04, 2015 the local content act 2010 and the nigeria oil and gas sector, being a paper presented by orebiyi temitope at the csomedia meeting organised by lawyers alert on the 3rd of september 2015 at ajuji hotel abuja. Measurement and implementation of local content in nigeria. Nigerian content development bill 2005a bill to make provi. The nigerian content monitoring board ncmb shall be established as the regulatory body responsible for monitoring, coordinating and implementing the provisions of the nigerian local content act. Local content is major change from importer to producer will be resisted globally and locally. Local content activities, and priority is given heavily to nationals when employing.
The passage into law of the nigerian local content bill is one of the significant developments for domesticating the oil and gas industry through local value. The act establishes a comprehensive local content regime that enshrines legal measures which promote the patronage of nigerian products and services by operators in the nigerian oil and gas industry. The role of local content policy in local value creation in. Content development nogicd act in 2010 to promote local content development throughout the sector. As part of caverton helicopters, a member of the caverton offshore support group, conscious policy to support the federal government efforts to implement the local content act of 2010, the company. Nigeria is the only country that has established a local content law nigerian oil and gas industry content development act 2010. Gas industry content development act 2010 the act seeks.
General nigerian content requirements companies responding to expression of interest advertisements are required to submit the following in compliance with the nigerian content act, 2010. Nigeria is abundantly endowed with mineral and human resources, and is reputed to be the seventh largest oil producing country in the whole world. To consolidate the objective of increasing indigenous participation, the government introduced the nigerian oil and gas industry content development act 2010 the local content act. To address these challenges, lc policy was implemented in nigeria as early as 2001 and passed into law a decade later. The policy is designed to build the capacity of indigenous firms and to provide more opportunities for. The nigerian oil and gas industry content development act the act is designed to enhance the level of participation of nigerians and nigerian companies in the countrys oil and gas industry. The local content act 2010 enactment, enforcement and matters arising preliminary. Newsletter may 2010 content development act 2010 background the nigerian oil and gas content development act hereinafter referred to as the act was promulgated on the 22nd of april, 2010. Pdf the nigerian oil and gas local content regime and. The role of the ncdmb which is very clearly set out 4. The nigerian oil and gas industry content development act 2010 the act seeks to increase indigenous participation in the oil and gas industry by prescribing minimum thresholds for the use of local services and materials and to promote transfer of technology and skill to nigerian staff and labour in the industry. Gas industry to motion capture filetype pdf be produced locally. General nigerian content requirements nigeria lng home page. The local content act was enshrined into nigerian law on the 22nd of april 2010.
The nigerian oil and gas industry content development act. Nigerian oil and gas industry content development act 2010 no. It sets minimum targets for nigerian participation in 280 categories of oil services with the aim of fostering backward and forward linkages. The local content act 2010 enactment, enforcement and. Thursday, april 22, 2010 witnessed a landmark in the history of the nigerian oil and gas industry the industry by the signing into law of the nigerian oil and gas industry content development bill also known informally as the nigerian content bill or local content bill by the then. Nigerian oil and gas industry content development actazs. Nigerian content development fund model implemented to support working capital and loan requirements of the local supply chain. The nigerian oil and gas industry content development act the act is designed to enhance the level of participation of nigerians and nigerian companies in the countrys oil and. The nigerian content monitoring board ncmb was established as the regulatory body responsible for monitoring, coordinating and implementing the provisions of the local content act. The tone was set by the enactment of the minerals and mining general regulations, 2012li 2173 as a local content policy in the mining sector. Jonathan gcfr, in march 2010 signed into law the nigerian local content act which aimed at promoting industrialization of the nations oil and gas industries.
The nigerian oil and gas industry content development act 2010. As the deputy manager and later promoted to manager, legal services, umar has been involved in providing legal advice on all aspects of the implementation and interpretation of the nigerian oil and gas industry content development nogicd act 2010. This act sets out specific work scopes that must be performed in nigeria and it guarantees fair access to foreign companies. Best practice for local content development strategy. Act the nigerian content act or nogicd act in 2010. The acting president of the federal republic of nigeria, dr goodluck ebere jonathan, signed the nigerian oil and gas industry content act 2010 the act into law on 22 april 2010. Nigerian content development and monitoring board building. A regulatory act known as the nigerian oil and gas industry content development act was introduced in 2010 ovadia, 20.
Inspite of the huge financial investment made by the nigerian government in the oil and gas industry of. Oil and gas industry content development act 2010 taxspectives by afolabi elebiju originally published in thisday lawyer, 1st november 2011, p. Conceptualizing tvet in most advance economies, industrialization most certainly emanate from tvet kutz, 2001. Local content specific laws are not common among these cases. There was no legislation wholly dedicated to the nigerian content in the oil and gas. The major stakeholders involved in the implementation of the act were multinational companies. The making of oilbacked indigenous capitalism in nigeria. Development and utilization of local capacity nigerian content nc targets, compliance, monitoring and enforcement. This article undertakes the local content requirements in nigeria oil and gas industry. An overview of the nigerian content development act 2010.
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