[JUST IN] NCDMB: Why local content in Nigeria may differ from other countries – Wabote

Nigerian Content Development and Monitoring Board (NCDMB) has explained that local content is defined by peculiarities relative to respective implementing nations to the extent that the local content needs in Nigeria tends to differ from what obtains in other countries.

Simbi Wabote, Executive Secretary, NCDMB, explained this sensitivity about how local content works at a Local Content Workshop the board held Thursday in Port Harcourt to sensitise Rivers State Judiciary stakeholders on the ‘Philosophy and Imperative of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act 2010′.

Wabote noted that, “Local Content has no ’one-size-fits-all approach or solution. Local peculiarities are key considerations in implementation, which means the Local Content needs in Nigeria may not be same in other countries, like Qatar. Local content obtainable in Nigeria or Qatar depends on the peculiarity of the country.”

Espousing the improvement insight his board has brought to the development of industry in Nigeria, the NCDMB boss who addressed the workshop virtually, 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 Corporate Social Responsibility, but a business. It is a marathon, not sprint, and Local Content is not at all cost.

“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.

“Prior to enactment of the 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 intention of the NOGICD Act is laudable and commendable.

“It offers us 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 effective implementation is fundamental to realization of its objectives. Therefore the Board must demonstrate deliberate boldness and courage in discharging statutory duties of the Act and thereby beam lights into the provisions of the Act.”