Experts Hail FG On Local Content Act

Two experts in the oil and gas sector have commended the Federal Government for encouraging the use of local content in the sector through appropriate legislation.

The experts told The Tide in separate interviews in Lagos on Thursday that the Nigerian Local Content Act (NLCA) would encourage local production of oil and gas facilities.

The Nigerian Local Content Bill was just recently signed into law by President Goodluck Jonathan.

The Chairman of Lagos Chapter of Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Mr Folorunsho Oginni, commended the president for signing the bill into law.

He said that the law would enhance job creation for Nigerian youths in the oil and gas industry.

Oginni advised the Federal Government to enforce the law so that many Nigerians would benefit from it.

He said that if companies abide by the law, there would be more jobs, especially for indigenous engineers.

“I strongly believe that the local content initiative will reduce costs and ensure long-term availability and viability of local goods and services.

“Government should provide recreational facilities and security as part of the initiative to attract investors,’’ he stressed.

Mr Biodun Adigun, the Managing Director of Topssy Energy limited., said that the bill had been identified as one of the most progressive developments in the sector.

According to him, the Act places obligations on upstream oil companies in the areas of finance, community relations and local workforce.

He said that the Act would create opportunities in the local oil and gas industry, open up business opportunities and create more than 50,000 direct jobs for small-scale enterprises in Nigeria.

“I will like to propose a similar bill for the nation’s agri-business and agro-processing sub-sector,’’ he said.

He said that the new bill should also stipulate minimum local content percentage for all inputs used by food processors, restaurateurs and caterers.

Adigun said that he was optimistic that such bill would create more value in the agro-allied businesses than that of the oil and gas sector.

“It will create jobs, add value to businesses and impact on nutrition, household savings and quality of lives,’’ he said.