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Time To Implement Local Content Act 2010

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A visit to Nigeria airports, especially the Port Harcourt International Airport, Omagwa shows an influx of so-called foreign experts into the country almost on daily basis. When asked who they are and where they are going, the answer is always, “they are expatriates coming for one oil company or another. With this observation, one is poised to ask whether the oil companies in the country are actually working in consonance with the Nigerian Oil and Gas Industry Content Development Act, 2010.

President Goodluck Jonathan in September 2010 inaugurated the Governing Council of the Nigerian Content Development and Monitoring Board (NCDMB) during which he charged the board to ensure that its activities impacted on the oil and gas sector. He said the initiative must count on indigenous capacity development in the oil and gas industry. With the inauguration, the NCDMB was fully equipped to commence operations to meet the expectation of Nigerians in the gradual but sustainable implementation of the Nigerian Content Act.

The Nigerian Oil and Gas Industry Content Development Act, 2010 aims to provide for the development of Nigerian content in the Nigerian oil and gas industry, Nigerian content plan, supervision, coordination, monitoring and implementation of Nigerian content and for related matters. Enacted by the National Assembly of Nigeria, the Act, not withstanding anything to the contrary contained in the Petroleum Act, which shall apply 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.

And among other matters, all regulatory authorities, operators, contractors, subcontractors, alliance partners and other entities involved in any project, operation, activity or transaction in the Nigerian oil and gas industry shall consider Nigeria content as an important element of their overall project development and management philosophy for project execution.

The Executive Secretary of the NCDMB, Mr Ernest Nwapa on Thursday at the 2012 Nigerian Oil and Gas (NOG) conference in Abuja explained that the implementation of the Nigerian Oil and Gas Industry Content Development (NOGIC) Act was geared to bring Nigerian jobs back home. Mr Nwapa said the board would ensure that all technology required to develop the local content was deployed to the country to create greater opportunities for Nigerians, pointing out that the emphasis of the Federal Government with the implementation of the Act was not only to retain the bulk of the annual oil and gas industry spend in the country, but ultimately to create employment for millions of Nigerians on the back of oil and gas industry operations.

He noted that most countries around the world were currently working towards bringing back jobs for their nationals in the wake of the global economic crisis and urged all stakeholders to support this agenda of the Federal Government. According to Nwapa, keeping the cost of production reasonable and meeting work schedules are critical to national revenue.

With the caliber of members of the Governing Council of the Nigerian Content Development and Monitoring Board head by the Minister of Petroleum Resources, Mrs Diezani Alison-Madueke, one would have thought that the Act should have by now been strictly enforced for compliance by oil and gas companies in the country. The Act if properly enforced will propel Nigeria into becoming one of the world’s industrialised economies in the next decade.

Nigeria needs to urgently address the issue of local capacity in the oil and gas industry so as to take advantage of expected investments and guard against the repeat of past mistakes where most goods and services used in the industry were imported, while facilities that were built suffered from inadequate after sales service support. The preference for importing almost all the goods and services used by the industry from abroad is steadily eliminating opportunities to develop human and infrastructural capacity, thereby impoverishing our people and stultifying national economic development.

We must ensure that our implementation efforts do not fail and we must be consistent and unwavering in order to transform our industry from an importer of goods and services to an industry that can source its key imputs from local resources. The oil and gas industry can generate manufacturing activities to support its operations and employment and domicile significant proportions of its derivatives as well as trap commensurate revenue in Nigeria to develop the fabrication yards, shipyards and manufacturing plants to industrialise our economy.

Major cities like Lagos, Abuja, Port Harcourt, Kano, Jos, to mention just a few, like the proverbial honeybee, easily attract prospective foreigners into the country so must and many foreign experts who appear to have literarily struck gold in the country capitalise on the quest of industries for them to simply hijack available positions meant for indigenes. These industries, particularly the oil multinationals refuse to know that Nigerians also have the right skills that are high on demand.

An immigration official who did not want his name on print because he had no authority to speak on the issue, revealed to journalists that the office receives hundreds of applications from prospective foreigners seeking temporary permits in the country on daily basis. His words: “In recent time, we have been receiving a deluge of applications form would-be expatriates seeking work permits. What we do when such applications come, under the circumstance, is to do thorough background checks and treat each ease on its merit”.

Investigations have revealed that foreigners appear to dominate key sectors of the country’s economy such as oil and gas, energy and power, construction, telecommunications, real estate, banking and finance, among others. The Vice Chairman, Broron Group of Companies, Mr Henry Ojogho, a conglomerate with interest in oil and gas, telecommunications, energy and power, in an interview disclosed that foreigners still dominate most businesses in the country today. Specifically citing the oil and gas industry, ojogho said that the country has the right local experts for most of these jobs.

He was, however, quick to admit that there are lots of handicaps militating against the capacity of local experts to deliver on the job when compared to their peers abroad. “In Nigeria, I can tell you in all honesty that we have expertise that can compete favourably with their counterparts abroad but they are hamstrung by the lack of capacity. What do you make of a professional involved in seizure engineering who has no equipment to do these jobs?, he stressed.

The President of the Association of consulting Architect of Nigeria Architect Roti Delano,in another interview decried what he described as the “invasion of foreign architecture” in the country. He said: “We have had other foreign architects working in the country but the problem we are having now is the incursion of foreign architects practicing illegally in Nigeria. Some clients engage these people in ignorance and we know of clients, who when this is drawn to their attention, reverse the situation”.

Delano continued: “It is not only the clients that are encouraging foreign people coming to practice illegally in Nigeria, we have instances where the Federal Government engages foreign architects to work illegally in Nigeria. Part of the problems we are going through now is trying to make our clients realise that the Nigerian architects”. He recalled that when President Olusegun Obasanjo was Head of the Military Government in the 1970s and the country was building the second generation universities at the time, all the projects went to Nigerian artchitects provided they showed they have the technical expertise.

The cost of engaging a local architect or expert in any field is a fraction of what you pay the foreign person. Several studies have shown that in about 37 countries, Nigerian professionals earn the least pay while the Federal Government pays a lot of money for consultancy services for those coming from abroad. The government flies them in an pays them heavily for what other Nigerians here can do in a lesser time than the foreigner can achieve. The government must look into this.

Expenditure in the industrial sector of the country must transcend returns in terms of revenue and also translate to local capacity, increased technological growth, jobs for Nigerians, assets and develop critical facilities and infrastructure to support performance of work scopes in Nigeria.

It is now necessary for the Governing Council of the Nigerian Content Development and Monitoring  Board to develop partnership between local and international companies, government, and gas companies and the private sector of the economy and create linkage with all sectors of the economy, local banks and global financing institutions to create the enabling environment for local capacity building. There must be developments in our supply chain management, the integration of government programmes such as Small and Medium Enterprises, training by the Petroleum Training and Development Fund (PTDF), Industrial Training Fund (ITF), National Office for Technology Acquisition and Promotion (NOTAP), to build local capabilities across board and transfer the technological experience inherent in the oil and gas industry to other sectors like transportation, construction, telecommunications, power, defence, maritime among others.

The NCDMB should create access to funds by leveraging the reforms in the banking sector to design interventions that support local companies with low interests and long-term loans. The board should also sensitise indigenes of oil producing communities on government’s genuine intentions to empower their youths, protect the environment, secure lives and property and ensure their participation in economic activities to maintain the tranquil environment required to support productive industry activities.

 

Shedie Okpara

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Take Concrete Action To Boost Oil Production, FG Tells IOCs

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The Federal Government has called on urged International Oil Companies (IOCs) operating in Nigeria to take concrete steps to ramp up crude oil production, following the country’s ambitious target of reaching 2.5 million barrels per day by 2027.

Speaking at the close of a panel session at the just concluded 2026 Nigerian International Energy Summit, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, said the government had created an enabling environment for oil companies to operate effectively.

Lokpobiri stressed that the performance of the petroleum industry is fundamentally tied to the success of upstream operators, noting that the Nigerian economy remains largely dependent on foreign exchange earnings from the sector.

According to him, “I have always maintained that the success of the oil and gas industry is largely dependent on the success of the upstream. From upstream to midstream and downstream, everything is connected. If we do not produce crude oil, there will be nothing to refine and nothing to distribute. Therefore, the success of the petroleum sector begins with the success of the upstream.

“I am also happy with the team I have had the privilege to work with, a community of committed professionals. From the government’s standpoint, it is important to state clearly that there is no discrimination between indigenous producers and other operators.

“You are all companies operating in the same Nigerian space, under the same law. The Petroleum Industry Act (PIA) does not differentiate between local and foreign companies. While you may operate at different scales, you are governed by the same regulations. Our expectation, therefore, is that we will continue to work together, collaborate, and strengthen the upstream sector for the benefit of all Nigerians.”

The minister pledged the federal government’s continued efforts to sustain its support for the industry through reforms, tax incentives and regulatory adjustments aimed at unlocking the sector’s full potential.

“We have provided extensive incentives to unlock the sector’s potential through reforms, tax reliefs and regulatory changes. The question now is: what will you do in return? The government has given a lot.

Now is the time for industry players to reciprocate by investing, producing and delivering results,” he said.

Lokpobiri added that Nigeria’s success in the upstream sector would have positive spillover effects across Africa, while failure would negatively impact the continent’s midstream and downstream segments.

“We have talked enough. This is the time to take concrete actions that will deliver measurable results and transform this industry,” he stated.

It would be noted that Nigeria’s daily average oil production stood at about 1.6 million barrels per day in 2025, a significant shortfall from the budget benchmark of 2.06 million barrels per day.

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Host Comm.Development: NUPRC Commits To Enforce PIA 2021 

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The Chief Executive of the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), Mrs. Oritsemeyiwa Eyesan, has restated the commission’s commitment to ensuring oil companies comply with the Petroleum Industry Act (PIA) 2021 to promote sustainable development in host communities.
Eyesan made the remark at a Sensitization Programme in Owerri, Imo State, explained that the PIA 2021 mandates oil companies to contribute 3% of their annual operating costs to Host Communities Development Trusts (HCDTs) for community development projects.
Represented by Atama Daniel, Eyeso said “The funds will be used for education, healthcare, infrastructure, and economic empowerment”.
Eyesan assured that the commission would facilitate a smooth implementation process and ensure compliance by oil companies.
She, however, urged oil-producing communities to protect oil facilities in their areas as well as stop all illegal oil exploration activities within their communities.
The chief executive also disclosed that NUPRC has established Alternative Dispute Resolution Centres to resolve disputes between oil companies and host communities.
Earlier, the National President, HOSTCOM, Dr. Benjamin Tamarenebi, advised the host communities to always embark on sustainable development projects rather than frivolous projects.
He warned traditional rulers against bidding for contracts for execution of projects approved for their communities in line with the provisions of the Petroleum Industry Act.”
Tamarenebi noted that monarchs, as heads of Host Communities Board of Trustees, have the responsibility of supervising the awarding and execution of projects approved for the communities and ensuring accountability, adding that awarding contracts to themselves will lead to compromise.
He disclosed that funds disbursed to the communities are now higher than before and urged the communities to take good advantage of it.
“They can build schools and other sustainable projects and think of something that will always be a more economical variable in the community; if this is done there would be economic activities and development. In order not to waste the funds, manpower, train your children with the funds, give them scholarships instead of buying vehicles or renting apartments in the city”, he said.
In his remarks, the Deputy Executive Director, Environmental Defenders Network (EDEN), Johnson Abiye, urged regulators to ensure smooth implementation of the Petroleum Industry Act as it relates to the oil producing communities.
Abiye noted that many communities that were supposed to be part of HOSTCOM were omitted and called for the situation to be redressed.
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PETROAN Cautions On Risks Of P’Harcourt Refinery Shutdown 

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The Petroleum Products Retail Outlets Owners Association (PETROAN) has expressed fears of rust, corrosion, abandonment, lack of lubrication, and eventual destruction of installed equipment at the PortHarcourt Refinery due to continued Shutdown.
PETROAN said it would also result in rendering the entire revamp effort futile if urgent action is not taken.
The Public Relations Officer and Spokesperson of the Association, Dr. Joseph Obele, in a statement, noted that over $1.5 billion of public funds were reportedly expended on the rehabilitation of the Port Harcourt Refinery, which was reopened in November 2024 and shut down again in May 2025 due to alleged financial losses.
Speaking on the sidelines of the recent remarks credited to the Group Chief Executive Officer of NNPC Limited, Engr. Bayo Ojulari, in which he described the re-operationalisation of the Port Harcourt Refinery and Petrochemical Company as a ‘waste of resources’ and admitted that NNPC lacks the capacity to operate refineries profitably, Obele expressed disappointment, describing the statement as troubling, demoralising, and deeply disturbing, and raising  fundamental questions about institutional responsibility, governance, and the stewardship of public resources.
With the huge funds already spent on the rehabilitation process, Obele stated
therefore, that for the GCEO of NNPC to  dismiss the entire exercise as a waste of resources, without clear attribution of responsibility, performance audits, or accountability measures, is unacceptable to Nigerians.
“If NNPC truly lacks the capacity to run refineries profitably, as admitted by its own GCEO, then Nigerians deserve to know who advised the investment, who supervised the rehabilitation, who certified the restart, and who benefited from the contracts and operations.
“Public institutions cannot casually dismiss a multi-billion-dollar national asset as a mistake without consequences”, he said.
The PETROAN spokesperson also faulted the narrative by Ojulari that Nigerians should be “thankful” solely because of the success of the Dangote Refinery.
While acknowledging the strategic importance and commendable achievement of the privately owned refinery, he stressed that private investments cannot replace the constitutional and economic obligation of government to efficiently manage public assets.
“Dangote Refinery is a private investment driven by profit and efficiency. NNPC, on the other hand, holds national assets in trust for Nigerians. One cannot be used as an excuse for the failure of the other,” Dr. Obele emphasized.

The energy expert further warned that repeated public admissions of incompetence by NNPC leadership risk eroding investor confidence, weakening Nigeria’s energy security framework, and undermining years of policy efforts aimed at domestic refining, price stability, and job creation.

He described as most worrisome the assertion that there is no urgency to restart the Port Harcourt Refinery because the Dangote Refinery is currently meeting Nigeria’s petroleum needs.

“Such a statement is annoying, unacceptable, and indicative of leadership that is not  solution-centric,” he said.

The PETROAN National PRO reiterated that Nigeria cannot continue to normalise waste, institutional failure, and retrospective justification of poor decisions stressing that admitting failure is only meaningful when followed by accountability, reforms, and a clear, credible plan to prevent recurrence.

By: Lady Godknows Ogbulu
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