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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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REA, Mente Energy Sign MoU On Renewable Energy Localisation

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The Rural Electrification Agency (REA) and Mente Energy Limited have signed a Memorandum of Understanding (MoU), formally launching the Renewable Energy Localisation and Industrialisation Programme (RELIP).
The programme is designed to structure renewable energy market to catalyse investment, generate skilled industrial employment and build a domestic clean-energy manufacturing base in partnership with global capital.
Speaking during the signing ceremony at the agency’s headquarters in Abuja, the Managing Director/Chief Executive Officer, REA, Abba Aliyu, said Nigeria built significant momentum in decentralised renewable energy but until now, the economic value of that deployment has largely flowed offshore.
“By organising our national demand and building the institutional architecture to support domestic manufacturing, we are creating the conditions for investment, jobs and industrial growth to take root on Nigerian soil.
“The REA is proud to lead this programme and we welcome partners – Nigerian and international – who share our commitment to building a clean-energy industrial base that serves Nigeria first,” he said.
The founder and managing partner of Mente Energy, Tolu Osekita, said Nigeria’s renewable-energy market is one of the most significant industrial opportunities of this decade.
Osekita said “What RELIP does is to put structure around that opportunity so that capital of every origin can invest here with greater confidence and at greater scale.
“Grounded in Nigeria-first principles, this is about catalysing the maximum economic opportunity for our country – factories, jobs, investment and industrial growth built on Nigerian soil, in partnership with the world.
We are proud to stand alongside the REA in leading this work”.
The MoU establishes a five-year framework for strategic collaboration – with RELIP identified as the first priority workstream am phase 1 will be delivered over approximately six months, establishing the commercial, analytical and institutional foundations required for NREIF launch and subsequent capital mobilisation.
The programme is designed to structure renewable energy market to catalyse investment, generate skilled industrial employment and build a domestic clean-energy manufacturing base in partnership with global capital.
It would be noted that Nigeria is one of Africa’s most dynamic renewable-energy markets as both the public and private sectors adoption is accelerating with millions of solar home systems, hundreds of mini-grids and growing commercial and industrial uptake.
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Stakeholders Seek Unified Action To Accelerate Methane Abatement In Oil, Gas Sector

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Stakeholders across the government, civil society and industries have called for stronger regulatory coordination and accelerated action on methane abatement in the nation’s oil and gas sector.
They made the call at the Methane Emission Abatement in the Oil and Gas Industry Regulatory Dialogue organised by the Stakeholder Democracy Network (SDN) alongside other partners, in Abuja, at the weekend
The Country Director, SDN, Mrs Florence Ibok-Abasi, insisted that fragmented regulatory approaches have slowed progress in the past, noting that the current engagement aimed to align priorities, strengthen enforcement, and build lasting institutional coordination.
“We are here to align priorities, learn from our challenges, break down silos, and build genuine coordination among all stakeholders.
“Each of you brings critical knowledge; upstream expertise, midstream insights, climate policy perspective, civil society accountability, and legislative oversight. Our strength lies in bringing these together.
“Improved inter-agency cooperation is not optional; it is the foundation for better data, stronger enforcement, and credible progress toward Nigeria’s global methane pledge. We have the talent to make this work”, she said.
Ibok-Abasi said the gathering marked a turning point in efforts to harmonise regulatory approaches, describing collaboration as critical to achieving meaningful climate outcomes.
While noting that the dialogue was the first of two, the SDN boss stated that a second dialogue would be reconvene to advance initiatives and collaboration that would ensure improvement of methane abatement in the oil and gas sector.
Also speaking, the Head, Environment and Climate Change, SDN, Dr Jude Samuelson, highlighted methane reduction as one of the fastest and most effective strategies for tackling climate change globally.
Samuelson noted that the initiative was, therefore, designed to ensure regulators and operators work hand in hand to deliver measurable results.
He, however, identified the high cost of methane abatement technologies as a major constraint, calling for stronger government-industry partnerships to make such solutions more accessible and scalable in Nigeria.
“One of the recommendations that SDN has is to see how the government can work with the operators to ensure that the operators afford these technologies.
“We are also interested in bringing some of the new technologies from methane emission abatement down to the country to see how the technologies could be deployed in the oil and gas sector to ensure that emissions reduce drastically”, he said.
Speaking from the climate policy perspective, the representative of the National Council on climate Change (NCCC), Chukwuemeka Okebugwu, said methane remained a significant contributor to global warming, particularly in oil-producing countries like Nigeria.
“The oil and gas sector is a major source of methane emissions.
“So regular dialogue helps us develop practical solutions and also identify opportunities, including converting methane into useful energy instead of wasting it,” he said.
On his part, the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Saudi Mohammed, highlighted the need for methane abatement.
Represented by the Technical Adviser on  Health, Safety Environment and Community, Odafe Atebe, Mohammed,
described methane abatement as a cost-effective pathway for Nigeria to achieve climate goals without compromising energy security.
In his words, “Fragmented approaches will not deliver the scale of impact required. We must move beyond discussions to coordinated action across the entire oil and gas value chain”.
On his part, Senior Manager, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Ibrahim Jilo, noted that while progress has been made, challenges remain in ensuring compliance across a diverse and evolving industry landscapNRGIe.
Jilo emphasised the importance of tailored approaches, capacity building, and sustained engagement with operators.
Representative of the Civil Society Group, Natural Resource Governance Institute, Tengi George- Kalu, who spoke from the civil society standpoint, urged stakeholders to ensure that methane reduction efforts translate into tangible benefits for communities affected by oil and gas operations.
“Collaboration is key to moving from policy ambition to real implementation and enforcement,” she stated.
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NITDA, NNPC Partner To Drive Digital Transformation In Energy Sector

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The National Information Technology Development Agency (NITDA) and the Nigerian National Petroleum Corporation (NNPC) are deepening collaboration to accelerate digital transformation in Nigeria’s energy sector.
The collaboration is being championed through the Research, Technology and Innovation (RTI) Unit of the NNPC.
In a courtesy visit by the Director, RTI Unit of the NNPC, Olatomiwa Olaniyi, to the Director-General, NITDA, Malam Kashifu Inuwa, the duo explored strategies to leverage emerging technologies to reposition the nation’s energy industry.
Speaking, NITDA boss, Inuwa, stressed the need for the NNPC to shift from traditional dependence on the exploitation of oil and gas resources to a more innovative model.
According to him, the innovative model would be anchored on the exploration of technologies such as Artificial Intelligence (AI), Internet of Things (IoT) and robotics, among other emerging technologies.
Inuwa said information technology had become a critical enabler across sectors, adding that innovation would play a key role in shaping the future of energy production, efficiency and sustainability in Nigeria.
He outlined NITDA’s strategic priorities to include promoting digital literacy, nurturing local talent, strengthening research ecosystems and advancing indigenous technology solutions.
According to him, reducing reliance on foreign technologies while encouraging home grown innovation is vital to achieving digital sovereignty and sustainable economic growth.
The NITDA boss also said the agency would support NNPC in developing a robust innovation pipeline to connect the company with Nigeria’s growing startup ecosystem.
He said startups would be engaged through incubation programmes and innovation challenges to develop practical solutions tailored to the oil and gas industry.
Inuwa further scored that NITDA’s initiatives aimed at fostering innovation among young Nigerians, including members of the National Youth Service Corps.
“Many of our corps members are already creating solutions to real-world challenges through the agency’s programmes,” he said.
Inuwa also said that effective implementation of the Nigerian Startup Act would be crucial in supporting emerging technology ventures and scaling ideas into commercially viable solutions.
Earlier, Olaniyi said the engagement was aimed at co-creating solutions and building a strong partnership framework to accelerate innovation across the energy value chain.
He emphasised that collaboration among government agencies, industry players and the technology ecosystem remained critical to achieving sustainable innovation.
Presenting the mandate of the RTI Unit, he said its focus was on driving excellence through innovation.
According to him, this would lead to improved operational efficiency, enhanced revenue generation and support sustainable growth across NNPC’s businesses, including upstream, gas, power and new energy.
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