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Monday, February 21, 2022

NOGICD Act not about ‘Nigerianisation’ of oil & gas industry – ITREALMS

ITREALMS ... making leadership SENSE with digital news!

The Executive Secretary of the Nigerian Content Development & Monitoring Board (NCDMB), Engr. Simbi K. Wabote has said that the Nigerian Oil and Gas Industry Content Development (NOGICD) Act was not about ‘Nigerianisation’ of the sector, reports ITREALMS.

 
Engr. Wabote of NCDMB
“The focus of the NOGICD Act is not “Nigerianization” of the oil & gas industry, but “Domiciliation” and “Domestication” of value-adding activities,” he asserted.

Wabote made this assertion at a breakfast meeting with members of revered Guild of Corporate Online Publishers (GOCOP) at the Lagos Sheraton, Ikeja on Thursday, February 17, 2022.

As said by him, NOGICD Act defines Nigerian Content as “the quantum of composite value added to or created in the Nigeria economy by` a systematic development of capacity and capabilities through the deliberate utilization of Nigerian human, material resources and services in the Nigerian oil and gas industry.”

He stressed that some of the key provisions of the NOGICD Act enable delivery of the Board’s mandate.

These, he said, include Sections 3, 12, and 28 of the NOGICD Act together provides for first consideration to be given to Nigerian operators in the award of oil blocks and licenses; Nigerian goods and services in the evaluation of bids, and for the employment and training of Nigerians in any project executed in the Nigerian oil and gas industry.

“These provisions are very fundamental and are at the core of the application of the Nigerian Content Act,” he said.

The ES also said that Sections 20, 21, and 22 of the NOGICD Act clearly stipulated the touchpoints during pre-qualification, bidding, and award stages of the oil and gas tenders to ensure local content provisions are not circumvented.

Even as he noted that Section 104 of the Act requires that the sum of one percent of every contract awarded to any operator, contractor, subcontractor, alliance partner or any other entity involved in any project, operation, activity or transaction in the upstream sector of the Nigeria oil and gas industry shall be deducted at source and paid into the Nigerian Content Development Fund (NCDF).

This provision, he said, has enabled the Board to fund several activities necessary to implement the provisions of the Act. 

Wabote cited an instance with Section 70 of the Act which listed the functions of NCDMB to include “Monitor Nigerian content compliance by operators and service providers; Engage in targeted capacity building interventions; Set minimum Nigerian Content levels for project activities; Conduct studies, research, investigation, workshops and trainings aimed at advancing the development of Nigerian Content, and manage and grow the Nigerian Content Development Fund, among others.

Remmy Nweke/DoP

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