Minister Wants Implementation Of Oil Industry Content Dev Act

The Minister of Petroleum Resources, Diezani Allison-Madueke yesterday in Abuja, stressed the need for government to implement the Nigerian Oil and Gas Industry Content Development Act.

Allison-Madueke, who made the call at a ceremony to commemorate the one year anniversary of the Act, said the implementation of the Act would help in the development of the nation’s economy.

She said the implementation of the Act would also help to retain over 10 billion dollars out of an average annual oil and gas industry expenditure of 20 billion dollars in the Nigerian economy, compared to the current sum of less than N40 billion.

“It will also help create over 30,000 direct employment and training opportunities, considering the scale of activities to be domiciled in Nigeria,’’ Allison-Madueke said.

She listed other benefits of the implementation of the Act as the integration of indigenes and businesses of residents of oil producing areas into the mainstream of economic activities in the industry.

The minister, however, explained that the law was not against multinationals or meant to indigenise the industry, but to support and promote the efficiency of genuine investors, in line with global best practices.

She reiterated the Federal Government’s commitment to repositioning the sector for greater efficiency and productivity.

Allison-Madueke, who was represented by the Permanent Secretary in the ministry, Alhaji Sheikh Goni, expressed optimism that in spite of the initial challenges in the implementation of the law it would enhance activities in the industry.

Mr Austen Oniwon, the Group Managing Director of the NNPC, said the Act would help to achieve national economic integration.

He said the law would ensure greater participation of Nigerians in the industry, and called on the Nigerian Content Development and Monitoring Board (CDBM) to carry out more enlightenment on its activities.

In his remarks, Mr Ernest Nwapa, the Executive Secretary of the Board, said the enactment of the law showed the Federal Government’s commitment to the development of the economy.

He said the Act would facilitate the training and increased participation of Nigerians in the industry and also check foreign dominance.

Nwapa said the board had put in place the Nigerian Content Development Fund into which oil companies would be remitting one per cent of their proceeds for capacity building.

The event was attended by the Minister of Interior, Mr Emmanuel Iheanacho, Mr Andrew Fawthrop, Managing Director of Chevron Nigeria Ltd and captains of industy as well as representatives of civil society groups.

The event was organised by the NCDBM.

The Nigerian Oil and Gas Industry Content Development Act 2010, was signed into law by President Goodluck Jonathan in April 2010.