The Nigerian Content Development and Monitoring Board (NCDMB) says it will not grant waivers to oil and gas operators and multinational service companies implementing the Nigerian Content Act.

The Acting Executive Secretary of the Board, Mr. Ernest Nwapa, made the clarification Tuesday in Abuja at a meeting of the implementation committee.

The Act, which was signed into law by President Goodluck Jonathan on April 22, specified benchmarks, which must be attained from the commencement of the Act.

But reports have it that the expectations could be hampered by current capacity limitations in the country.

Nwapa said the limitation in the capacity of local service companies, deficient infrastructure, equipment and facilities would not be an excuse for operators and contractors to seek and obtain frivolous waivers.

He said that a mechanism would be created by the NCDMB to handle waivers where the capacity did not exist without making waivers a culture of the industry.

“The law requires NCDMB to ensure that specific scopes in the schedules of the Act are performed in Nigeria, but most of the capacity still reside with the multinational service companies.”

“Prior to the Act, multinationals imported their tools and equipment on temporary basis to execute operations without vesting such assets in the Nigerian subsidiaries that win the contracts.”

“As such a huge proportion of the money spent on services within Nigeria end up in the companies’ country of origin.”

“In other cases, the absence of facilities and infrastructure to perform these scopes in Nigeria result in exporting the contracts abroad where thousands of jobs are created at the expense of the Nigerian economy.”

“The in-country capabilities are effectively constrained by certification, human capital, funding, obsolete facilities, infrastructure and technology.”

“But in most cases these can be addressed within two to five years based on studies carried out by industry”, Nwapa said.

He explained that the board interpreted the three-year grace period in the waiver clause of the Act as a challenge to the board to work with industry to address the areas of insufficient capacity.

The Executive Secretary said, “Therefore, the waiver mechanism would incorporate interventions for putting the required capabilities in place.