Nation
1% Oil Industry Contracts For Local Content Fund –Nwapa
Henceforth, one per cent of every contract awarded in the Nigerian oil and gas industry is to be paid into the Nigerian Content Development Fund (NCDF) in accordance with the Nigerian Content Act.
Mr Ernest Nwapa, the Acting Executive Secretary of the Nigerian Content Monitoring Board (NCMB), made the disclosure in Onne, near Port Harcourt, on Thursday, after inspecting the pipe threading yard of a private firm.
The Tide’s source reports that NCMB is an off-shoot of the Nigerian Content Bill recently assented into law by President Goodluck Jonathan.
The NNPC quoted Nwapa in a statement in Abuja on Friday as explaining that the NCDF would be deployed specifically for developing the capacity of Nigerian service providers in the oil and gas sector.
He said the fund would be managed by the board of NCMB and was different from the $350 million Local Content Fund which was put together by NNPC in 2007 to serve as a working capital for Nigerian companies that got service contracts in the industry.
Nwapa said: “In this case, you need to demonstrate the bankability of an investment and the board will begin to talk to you”.
“You are going to show a business plan and prove that the investment will be able to repay the loan”.
“The fund will not be managed by engineers or officials of the board. It will be managed by a proper fund manager with international best practices”.
“So, there is no question of utilising the fund for what it is not meant for.”
Nwapa said the vision of the NCMB was to grow the funds and use it to attract other financial players who would leverage on it such that Nigerian service providers would do business knowing that the fund was available for them to use.
He said the Nigerian Content Act was very robust as it was put together by legislators who understand the oil sector with inputs from members of the industry.
The chief executive called on Nigerian investors to take advantage of the immense opportunities which the Nigerian Content Act had created for them.
”Even if you create these opportunities and Nigerians do not take them, the board would not become manufacturers”.
“The board would only protect the rights of manufacturers, so Nigerians should take advantage of the law,” Nwapa said.
He also commended the management of Botro Marine & Oil Services, who he said took a risk to invest in the pipe threading yard in Onne in 2007 because of their confidence in the Nigerian Content Policy.
”This is the model we want to see because from cutting these threads, it is no longer in his hands.
“The next step would be how to think of manufacturing the pipes themselves because the time has come for us to do anything that can be done in Nigeria.
”Those machines are not made in Nigeria. The law allows you to bring machines from anywhere to work here and retain capacity in the country.
“It is important to our government and our people that we create opportunities for Nigerians to work here,” Nwapa said.
He said about 100 companies were operatiing at the Onne Free Trade Zone a few years ago, but the number had swelled to 150.
Nwapa said the government had the challenge to ensure that service providers at the Onne zone got jobs.
He said that with the Nigeria Content Act now operational, it was no longer at the discretion of officials to decide whether to give jobs to one or two companies.
”It is now law and they have a right to challenge anybody who does not give them jobs and rather takes it elsewhere outside Nigeria.
“President Goodluck Jonathan is bent on ensuring the successful implementation of the Nigerian Content Act.
“He did not keep that bill for more than two weeks before signing it into law and set up this board immediately.
“And, he has given us marching orders and already we have hit the ground running,” Nwapa said.
The source also reports that Nwapa, until this recent appointment, was the Group General Manager, Nigerian Content Division in NNPC.
The Movement for the Survival of the Izon Ethnic Nationality in the Niger Delta (MOSIEND) has called on the Management of Niger Delta Development Commission NDDC to embark on the water projects in Buguma city in Asari Toru Local Government Area, Rivers state
The Group called on the Rivers state government to revamp the Buguma fish farm to create employment for the teeming youths
On the water project in Buguma, MOSIEND said the population of Buguma has increased tremendously as the residents need more water projects to enhance the daily livelihood of the people
The Group also appealed to the Chairman of the council to assist in making the project a reality and attracts more developmental projects to the city
This call was on Rhythm 93.7 FM Port Harcourt, Radio program, Talk of the Town, by MOSIEND Eastern Zonal Coordinator of MOSIEND Half Hour Comrade Tammy Bruce Longjohn alongside Mark Ojuka,Chairman of Buguma and Hon Sandra Owunari JP Chairman Obuama and monitored by our correspondent
Comrade Ojuka also called on the Management of Liquidifed Natural Gas NLG to embark on a free medical outreach in all Kala bari communities to improve their health status
He appealed to LNG to award scholarship to indigens of Kalabari communities in tertiary institutions to better their education, noting the company is doing same in Bonny, abandoning Kalabari communities
“We need contracts, free medical, scholarships and employment including skill acquisition programs for our teeming youths in Kalabari extractions ”
On Security, Mark Ojuka said security in Buguma is at zero level with the help of the Ama Ma soldiers the city is more peaceful and investors friendly as the youths of area have cordial relationship with the security agencies in the area
“Security is very secured in Buguma clan”
He called on the Rivers state to revamp the Buguma fish farm to create employment for the teeming youths
“The youths are asking for human capacity building in the area to reduce unemployment”
“The revamping of the Buguma fish farm will also reduce youth violence”
Also Speaking, Eastern Zonal Coordinator of MOSIEND Half Hour Comrade Tammy Bruce Longjohn called for more improve in infrastructures in Kalabari community, especially in electricity
There is little improvement in terms of electricity in Buguma city
He decried the deplorable condition
of Buguma Health Centre, saying that the hospital is near functional
“Our sisters that are pregnant and our sick parents can not access the health centre for a better treatment ”
Describing the Health Centre as an eye saw, he called on Rivers state government and Buguma Local Government chairman Hon William to improve on facilities in the centre and make it more medically accessible to the sick persons in the area
Buguma, Tammy Bruce said is the spiritual headquarter of Kalabari people as such deserve more modern facilities from the government to improve lives
The Coordinator called on government, stakeholders and oil companies to assist and improve the poor infrastructural facilities in area
“We need first class hospitals, qualified medical doctors and nurses in the health centres and hospitals”
On the oil spilled in Obuoma Chairman MOSIEND Obuoma, Hon Sandra Owunari said the spill destroyed their crops and Rivers even polluted their only source of drinking water
She expressed displeasure that Rivers state government did not send any relief materials to the people in the affected community
On Chieftaincy title to women in Obuama, Hon Sandra Owunari said the community do not install Chieftaincy title to women, saying that Chieftaincy title is only reserved for men only in the community
CHINEDU WOSU
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