This act sets out specific work scopes that must be performed in nigeria and. Local content ng is designed to aid you better understand and utilize your untapped benefits from local content development in nigeria. The role of local content policy in local value creation. 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. The policy is designed to build the capacity of indigenous firms and to provide more opportunities for.
Nigerian content development fund model implemented to support working capital and loan requirements of the local supply chain. It is defined as the amount of incremental value added or created in nigeria through the utilization of nigerian human. Prior to the enactment of the nigerian content development act, the policy of local content had little or no ground in the nigerian oil and gas sector. Nigerian content monitoring board the act establishes the nigerian content monitoring board the bdboard whi hhich is theregultlatory agency vestdted with the responsibility of regulating local content. This need is equally expressed in nigerias desire to domicile a substantial. An act to provide for the establishment of the national housing fund and for matters connected therewith. 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. Drive impacts to host community level nigeria oil and gas industrial parks scheme.
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. This has brought about a significant shift in ensuring an increase in indigenous participation within the industry and therefore trying to achieve the. A bothand approach to china in africa with reference to angola. The nigerian oil and gas content development act of 2010 has provisions to. Main thrust of act may be summarized under four sub headings. Why local content in africas extractive sector wont work without home grown human capital july 29, 2015 12. The local content act 2010 enactment, enforcement and matters arising preliminary.
The board shall implement the provisions of the bill with a view to ensuring a measurable and continuous growth in nigeria content. Best practice for local content development strategy. Every nigerian citizen young or old possesses a unique potential, this can only be better used depending on the awareness of opportunities. Introduction of the nigerian oil and gas content development act. 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. Therefore, it was concluded that the nigerian local content act adds value to technical and vocational education and training tvet in. Local content agency act 2016, placing it into a comparative context with a selection of local content. Ncdmb act as facilitator, bringing together a broad array of. 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.
Measurement and implementation of local content in nigeria. Nigerian oil gas industry content development act local. March 2017 recent developments on nigerian content law in. Content development nogicd act in 2010 to promote local content development throughout the sector. Content development act nogicda was promulgated in 2010, with the. 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 was enshrined into nigerian law on the 22nd of april 2010. Hb 452 was introduced in 20, into the house of representatives by hon. The nigerian oil and gas local content regime and its non.
Recent developments on nigerian content law in the oil and gas industry the focus of the nogicda is not nigerianisation of the sector, but. 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. What matters when it comes to adopting local content. Guidelines for nigerian content development in information. 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. 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. Nigeria briefing notes 2020 the nigeria briefing notes covers activities and programmes undertaken by several nigerian companies either whollyowned by shell or in which shell has an interest. Foster measurement and implementation of local content.
An overview of the nigerian content development act 2010 free download as pdf file. Commencement be it enacted by the national assembly of the federal republic of nigeria as follows. Why local content in africas extractive sector wont work. Noc became nigerian national petroleum corporation nnpc in 1977.
Nigeria has promoted, through legislation, the concept of nigerian content through domestic capacity building and. The key term in the above provision is first consideration. 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. Together these are referred to as the shell companies in nigeria scin.
Therefore, it was concluded that the nigerian local content act adds value to technical and vocational education and training tvet in nigeria. Is nigerian content act indigenising the oil industry. Nigerian oil and gas industry content development act, 2010. The profiles are intended as a tool for policy makers, researchers and citizens seeking to understand and compare how local content is dealt with in other countries, and to provide some examples of language that might be adopted in a framework to achieve local content goals. Abstract the petroleum industry in nigeria is the largest industry and mean generator of gross domestic product gdp in the west african nation. Despite this, local content experiences from both regions are scattered and outcomes are undocumented. The nigerian oil and gas industry content development act 2010 lists targets for progressive increases in local content. The act comprises of three parts 107 clauses and one schedule. Section 3 1 of the act provides that nigerian independent operators5 shall be given first consideration in the award of oil blocks, oil field licences, oil lifting licences and in all projects for which contract is to be awarded in the nigerian oil and gas industry. 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. 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. Inspite of the huge financial investment made by the nigerian government in the oil and gas industry of. The nigerian oil and gas industry content development act.
Act the nigerian content act or nogicd act in 2010, significant progress has been made. When the local content act received presidential assent on april 2, 2010, many hailed it as as one of the significant developments in localising. Local content is major change from importer to producer will be resisted globally. In the case of the nigeria act these targets have in many cases been set in excess of the capability of the local market, as evident by waivers and workaround solutions from the. Nigerias story of local content interventions in the oil industry. A regulatory act known as the nigerian oil and gas industry content development act was introduced in 2010 ovadia, 20. 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. Documentation to demonstrate that the entity is a nigerianregisteredowned company. In order to inform the debate and provide policymakers with evidence to decide whether local content is the best policy option, this study seeks to map local content frameworks in latin america and africa and analyse possible outcomes.
General nigerian content requirements nigeria lng home. The local content act 2010 enactment, enforcement and. Nigerian content development bill 2005a bill to make provi. It may not be out of place to state that it is contrary to good business practice for a foreign company carrying on business in nigeria, using. Organisation and implementation framework indigenous and community participation development and utilization of local capacity nigerian content nc targets, compliance, monitoring and. A focus on local content aims to achieve the development of local skills, technology transfer, use of local manpower and local manufacturing. 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. Economic development is a major policy objective of the governments of developing countries that are rich in natural resources. To address these challenges, lc policy was implemented in nigeria as early as 2001 and passed into law a decade later.
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. 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. 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. Whereas, the national information technology development agency nitda, hereinafter referred to as the agency is statutorily mandated by the nitda act of 2007 to, inter alia. While a welldesigned local content framework is a valuable starting point, there are other factors that can shape their successful implementation aoun and mathieu 2015. An overview of the nigerian oil and gas industry local. The role of local content policy in local value creation in nigerias oil. Nigeria has long experience of local content policy in the oil and gas sector.