– As NCDMB trains Rivers judiciary on Local Content
Mkpoikana Udoma
Port Harcourt — The Executive Secretary of the Nigerian Content Development and Monitoring Board, Engr. Simbi Wabote, has said that local content in the country’s oil and gas sector needs foreigners and foreign direct investments to thrive.
Wabote noted that Local Content was not about nationalization of foreign firms, but about domiciliation and domestication for local value addition.
Speaking virtually at the Local Content Workshop for Rivers State Judiciary held in Port Harcourt, with the theme ‘Philosophy and Imperative of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act 2010, the NCDMB boss regretted that Nigeria lost over $380billion prior enactment of the Act.
He said, “It is important to note that Local Content is not about nationalization; it is about domiciliation and domestication for local value addition. It needs foreigners and Foreign Direct Investments to thrive.
“Local content is not a Corporate Social Responsibility, it is a business. Local content is a marathon, not a sprint; and Local Content is not at all cost.
“Local Content has no ’’one-size-fits-all’’ approach or solution; local peculiarities are key considerations in implementation; what that means is that Local Content needs in Nigeria may not be the same in other countries like Qatar, local content obtainable in Nigeria or Qatar depends on the peculiarity of the country.
“As always, our message remains simple: we want partakers in the Nigerian oil and gas industry to produce, process, refine, manufacture, add value, retain value, pay taxes here and create jobs here in Nigeria.”
The NCDMB boss also said Nigeria lost over 2million jobs prior NOGICD Act, as most jobs were executed by foreigners.
“Despite Nigeria’s enviable hydrocarbon and human resources, it is disheartening to note that only a small, insignificant proportion of the oil and gas industry value was retained in the country.
“Prior to the enactment of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010, almost all value-adding activities were done overseas, and this resulted in significant capital flight which was estimated to be at about $380 billion over a 50-year period.
“This resulted in over 2 million job losses as most jobs were also executed by foreigners. Furthermore, less than 5% of Nigeria’s yearly oil and gas industry spending was retained in the country.”
Declaring the workshop open, Rivers State Governor, Siminalayi Fubara, represented by the Attorney General of the State, Prof. Zacchaeus Adangor, said the NOGICD Act though laudable, requires deliberate efforts of NCDMB for effective implementation.
“The intention of the NOGICD Act is laudable and commendable, it offers us a guaranteed freedom from neo-colonialists economic phenomenon through gradual and continuous development of our indigenous capabilities in the oil and gas industry.
“However, like every piece of legislation, its effective implementation is fundamental to the realization of its objectives, therefore the Board must demonstrate deliberate boldness and courage in discharging its statutory duties of the Act and thereby beam lights into the provisions of the Act.”
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