Nigerian content development bill 2005a bill to make provi. 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. 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 content development act cda of 2010. Comprehensive local content framework for the oil and gas sector nigeria is one of the few countries having enacted a piece of legislation dedicated to local content the act. Nigerias story of local content interventions in the oil industry. The nigerian content plan must contain provisions ensuring that first consideration is given to services provided and goods manufactured in nigeria and to nigerians for training and employment in. Sola oyinlola, said that nigeria has become a force to reckon with in the petroleum industry through the support of the nigerian content act. Local content policy ndefinition, objectives, necessity for local content. The economic implication of local content policy on the.
Nigerias local content marathon key strides, forward steps and challenges igo weli is general manager, nigerian content development for shell companies in nigeria. Every nigerian citizen young or old possesses a unique potential, this can only be better used depending on the awareness of opportunities. Link oil and gas sector to other sectors of the economy. 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. Part scientist, part strategistiisd delivers the knowledge to act. The act further provides in its schedule a 50% threshold of nigerian content for legal services relating to project management and consulting services. Maximize participation of nigerians in oil and gas activities. Enacted by the national assembly of the federal republic of nigeria. Foster measurement and implementation of local content. To address these challenges, lc policy was implemented in nigeria as early as 2001 and passed into law a decade later. Nigerian government to initiate the local content policy in the year 2000 ihua, 2010. Berkeley legal the impact of the local content act on the.
Partner intend to ensure the use of locally manufactured goods where such. Nigeria, with a population of over 160 million, can equally be made to do same. The nigerian content plan must contain provisions ensuring that first consideration is given to services provided and goods manufactured in nigeria and to nigerians for training and employment in the work programme. Integrate oil producing communities into the oil and gas value chain. Federal republic of nigeria companies income tax act 19. As we reported earlier last year, the nigerian oil and gas industry content development act 2010 the local content act was enacted to enhance local content in the oil and gas industry and its central aims of developing indigenous skills across the value chain, promoting indigenous ownership of assets and use of indigenous assets, promoting the establishment of support industries and. Thus, the focus of this paper is to briefly explain the local content act and its implication on tvet and the nigerian economy. Further advance local content in light of important policy questions that need to. Mar 22, 2010 recent developments in nigeria recent developments in nigeria the early 2000s witnessed a more aggressive pp and focused approach to local content led by napims 3 major studies. He has also worked in nigeria in various capacities as sarbanesoxley act. The key term in the above provision is first consideration. Local content in the oil and gas sector world bank documents.
The details of documents to be submitted at each stage of the bidding process. National office for technology acquisition and promotion. Almost all successive administrations in nigeria introduce one administrative change or another. Local content policy, human capital development and. Ncdmb and the implementation of the ncdf 1% tax local. In april, 2010 the nigerian oil and gas industry content act, or the local content act as it is more frequently known, was signed into law. Under the act, according to bakere 2011, the holders of oil mining leases are required, within ten years of the grants of. It is the place of the ncdmb to oil the business in the extractive industry by ensuring that iocs and domestic oil companies abide by and implement local content policies to the latter. Noc became nigerian national petroleum corporation nnpc in 1977. Apart from the celebrated 1976 reforms, state government officials have also introduced various manipulations.
A key objective is to increase the nigerian content meaning the quantum of composite value added to. Feb 06, 2015 thousands of nigerians benefitting from the local content act. Nigeria overtakes south africa as continents largest economy. 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. 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. Nnpcs nigerian content vision is to transform the oil.
The local content act was enshrined into nigerian law on the 22nd of april 2010. The nigerian oil and gas industrycurrent issues and. 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. Iocs ought to be sourcing for raw materials at home and use same to. The fund is a portion of nigerian content development fund, ncdf established by section 104 of the nigerian oil and gas industry content development, nogicd act, drawn from one percent of all. The story of a marine grunt in the first battle of khe sanh april 1967 duration. 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. The role of local content policy in local value creation. The nigerian content development and monitoring board ncdmb was established in 2010 by the nigeria n oil and gas industry content development nogicd act. The local content policy objective and the overall obligation imposed in. Best practice for local content development strategy. In april, 2010 the nigerian oil and gas industry content act, or the local content act as it is more frequently known, was. This act sets out specific work scopes that must be performed in nigeria and it guarantees fair access to foreign companies.
He explained that the planned extension of the nigerian content act to other sectors was in line with the federal governments executive order on patronage of. The act comprises of three parts 107 clauses and one schedule. National assembly to extend local content law to other. Ncdmb is vested with the mandate to make procedures that will guide, monitor, coordinate and implement the provisions of the nogicd act signed into law on april 22, 2010. Local content nigeria petroleum sdejonckheere columbia. Federal republic of nigeria council on foundations. 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.
Nigerian content plan section 7 of the act states as follows. Local content broadcast in nigeria is meant to be a means through which the mass society experience culture. 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. Thousands of nigerians benefitting from the local content act. Nigeria has long experience of local content policy in the oil and gas sector. Despite the stipulation of the nbc code, television broadcasting in nigeria especially private owned continue to be criticized. Therefore, it was concluded that the nigerian local content act adds value to technical and vocational education and training tvet in nigeria. Dec 19, 20 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. Local content in nigeria the guardian nigeria news. National office for technology acquisition and promotion act. The concept of local content policy in nigeria can be traced back to the petroleum act 1969.
Countries can encourage local content through requirements and targets written in national laws. Gas industry to motion capture filetype pdf be produced locally. Nnpcs nigerian content vision is to transform the oil and. Tax implications of the nigerian oil and gas industry content. Almost three years after the passage of the landmark nigerian oil and gas industry content development act the nigerian content act or nogicd act in 2010, significant progress has been made. Noc became nigerian national petroleum corporation nnpc in. The nigerian government also deemed it necessary to design and sign into law the nigerian content act which provides for the development of nigerian content in the nigerian oil and gas industry in.
With effect from this date, the act shall be applicable to all matters pertaining to nigerian content in respect of all operations or transactions carried out in or connected with the nigerian oil and gas industry. A regulatory act known as the nigerian oil and gas industry content development act was introduced in 2010 ovadia, 20. Documentation to demonstrate that the entity is a nigerianregisteredowned company. Organisation and implementation framework indigenous and community participation development and utilization of local capacity nigerian content nc targets, compliance, monitoring and. 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. General nigerian content requirements nigeria lng home. Analysis of the nigerian oil and gas industry content act 2010. Through nigerian content, nigeria may finally be able to make its oil wealth a blessing instead of a curse. This report seeks to illuminate the use of local content requirements lcrs, a form of ntb that. Main thrust of act may be summarized under four sub headings. 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. The economic implication of local content policy on the oil. National committee report intsok r intsok reportt synchronised report this provided the foundation for the nigerian h d d h. The role of local content policy in local value creation in.
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. The economic implication of local content policy on the oil and gas industry and nigerian economy. The ncmb has also been given the mandate to certify companies to ensure compliance with the local content act. Nigerian oil and gas industry content development bill 2005 salient provisions nminimum nigerian content. Also worked in nigeria in various capacities as sarbanesoxley act. 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. Content development act was signed by president goodluck jonathan on 22nd april 2010. The relevant country experiences of nigeria, botswana, mozambique, brazil. Act the nigerian content act or nogicd act in 2010, significant progress has. Dec 25, 2017 he explained that the planned extension of the nigerian content act to other sectors was in line with the federal governments executive order on patronage of made in nigeria goods.
For example, in nigeria, requirements to partner with local companies. Gas industry content development act 2010 the act seeks. Commencement be it enacted by the national assembly of the federal republic of nigeria as follows. Berkeley legal the impact of the local content act on. Tax implications of the nigerian oil and gas industry. The government pushing for increased local content in the petroleum industry gave a legislative backing in early 2010 through the enactment of the local content act ozim, 2010. The board shall implement the provisions of this act with a view to ensuring a measurable and continuous growth of nigerian content in all oil. Recent developments in nigeria recent developments in nigeria the early 2000s witnessed a more aggressive pp and focused approach to local content led by napims 3 major studies. Introductionintroduction noil discovered in commercial quantities inoloibiriin rivers state in 1956. Oil and gas industry content development act 2010 taxspectives by afolabi elebiju originally published in thisday lawyer, 1st november 2011, p. Is nigerian content act indigenising the oil industry. Conceptualizing tvet in most advance economies, industrialization most certainly emanate from tvet kutz, 2001.
Nigerian local content act 2010 pdf nigerian oil and gas industry content development act. This act sets out specific work scopes that must be performed in nigeria and. Pdf local content policy and smes sector promotion. The policy is designed to build the capacity of indigenous firms and to provide more opportunities for. Local government administration in nigeria is classified as the third tier of government while several problems have been its recurring decimal and various reforms since 1976 havent been able to make the system effective and responsible to developmental challenges. Local content strategies in the oil and gas sector clingendael. The nigerian oil and gas industry content development act 2010 lists targets for progressive increases in local content. The nigerian oil and gas content development act of 2010 has provisions to enhance. The nigerian oil and gas industrycurrent issues and existing.