Local content Act opens new vistas for oil communities

Until recent times, the Niger Delta area of Nigeria had been an epicentre of agitation by people, particularly by militant youths, who felt cheated in the nation's scheme of things.

The armed confrontation perpetrated by the restive youths had been a justifiable source of concern to the government and the citizens because of its negative effects on the stability and economic life of the country.

All that is now history, as peace has returned to the Niger Delta, while the Federal Government's Amnesty Programme has guaranteed a new life for the ex-militants of the region.

However, observers maintain that the Nigerian Oil and Gas Industry Content Development Act 2010 represents another defining moment for the country's economy, aside from amnesty programme initiated by the late President Umaru Yar'Adua.

They note that the sustained peace in Niger Delta has certainly caused an appreciable increase in the country's crude oil production.

Energy experts insist that the local content law has opened doors of opportunities to the citizens, particularly people of the oil-producing communities, to participate more actively in the oil and gas industry.

Diezani Alison-Madueke, the former Minister of Petroleum Resources, had subscribed to this standpoint at several fora.

At a recent workshop in Houston, in the United States, Mrs Alison-Madueke stressed that the Nigerian Oil and Gas Industry Content Development Act would provide major investment opportunities for all stakeholders in the oil and gas sector.

"However, the Act is not intended to indigenise the industry or nationalise assets of foreign investors in the economy. Rather, it sets out provisions that guarantee that investments made in facilities within the country will be fully utilised, while the government will ensure that the rights of every investor are well protected under the law,'' she said.

In addition to the legal safety nets for local investors under the Act, the Nigerian Content Development and Monitoring Board (NCDMB) has also put some modalities in place to guarantee enhanced funding for investors through Nigerian Content Development Fund (NCDF).

Genuine concerns

Ernest Nwapa, NCDMB's executive secretary, who also spoke at the U.S. workshop, said that signing of the Nigerian Oil and Gas Industry Content Development Bill into law over a year ago had turned the initial apprehension of some stakeholders into genuine concerns regarding how to ensure compliance.

He noted that operating and servicing companies had started remitting one percent of the value of every contract awarded in the industry since April 22, 2010 to the Nigerian Content Development Fund, as provided by the Act.

Mr Nwapa projected that the funds in the NCDF would grow to about 100 billion U.S. dollars (about N15 trillion), with more than 300,000 jobs created directly or indirectly in the process.

In his presentation, Michael Akueche of Mica Global Energy, highlighted some of the glaring challenges facing the people of the Niger Delta area and charged the oil-producing communities to identify their own projects and form companies.

"The NCDMB's Joint Qualification System (JQS) avails all suppliers and contractors dealing with service providers the opportunity to register with them and gain access into the petroleum market.

"Nigerian firms that are manufacturing cement, paints and other materials needed in the oil and gas industry will benefit a lot from the provisions of the Act," he said.

Mr Akueche also noted that "youths, school leavers, graduates of oil and gas-related courses, as well as experts seeking employment opportunities will be among those who would be considered for training."

Judging by the experts' viewpoints, it is expected that the Nigerian Oil and Gas Industry Content Development Programme is bound to open up whole new vistas for the people of the Niger Delta region.

Source: http://feedproxy.google.com/~r/234next/nXXt/~3/MWK2hfQo-O8/local_content_act_opens_new_vistas.csp

the art of getting by bill maher puerto rico fathers day gifts derek jeter flag day jon huntsman