Local Content, The Future

The Nigerian Oil and Gas Industry Content Development Act which has just been signed into law is the cumulative result of decades of attempts by the government and stakeholders in the petroleum industry to ensure that the industry provides local value and maximized benefits to Nigerians. In over fifty years since the discovery of oil in Nigeria, the petroleum industry has functioned as an “enclave” economy, with very little linkages and contribution to the wider Nigerian economy.
Previous efforts to give effect to the localcontent policy
include establishment of various research, development,training, education and support funds; provisions in the Petroleum Act
onmandatory employment and training of Nigerians by petroleum operators,provisions on technology transfer, local content utilization, recruitment andtraining of Nigerian personnel contained in various contractual arrangementswith International Oil Companies (“IOCs”), and the establishment of aNigerian Content Division (“NCD”) of the NNPC to monitor and give effect togovernment’s Nigerian content policy.This paper seeks to provide a concise analysis of additional obligations, if any, imposed on oil and gas operating companies, their contractors and sub-contractors in the implementation of projects in the petroleum industry. Wewill further highlight the advantages of this Act for indigenous companies and

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