nigerian oil and gas industry content development act pdf Thursday, May 13, 2021 6:11:29 AM

Nigerian Oil And Gas Industry Content Development Act Pdf

File Name: nigerian oil and gas industry content development act .zip
Size: 13797Kb
Published: 13.05.2021

Skip to main content Skip to main navigation menu Skip to site footer.

The Bill was submitted to the House of Representatives on 18 December for its first reading and has made slow legislative progress since and which seems likely to slow further as the Government tackles the effects of Covid and the oil price crash.. The Act established a legal framework for the development of local content requirements in the oil and gas sector in Nigeria. The Bill has two main new functions: 1 it broadens the existing local content requirements for the oil and gas sector; and 2 it implements a similar regime for the ICT, power, solid minerals and construction sectors.

We provide below, another update on the operation of the law and the events that are likely to shape its success in the years to come. At the workshop, the Senators highlighted the urgent need to:. We expect the upper house to follow up this initiative with amendment to the law Act to reflect the proposed changes. However, any proposed amendments to the NOGICDA should be exposed to all the stakeholders to ensure that their view points are considered before enactment of the amended legislation. Click to download and read the full issue on this newsletter.

The Nigerian oil and gas local content regime and its (non) compliance with the trims agreement

Awe, S. The drive of Nigerian government to boost economic activities through local capacity utilisation, human capital development and empowerment of indigenous companies resulted in the implementation of Nigerian content development in the oil and gas industry which was previously exclusive to the multinationals. The Nigeria Oil and Gas Industry Content Development Act of provides the legal framework to facilitate and promote mandatory participation of companies owned by Nigerians in the high-risk and high-cost petroleum industry. Prior to the enactment of the act, insignificant number of Nigerian companies had the financial strength and technical know-how required to be competitive in the petroleum sector compared with the well established multinational operating and service companies. These factors made compliance with the requirements of the act a daunting challenge for the sector.

Updates On Nigerian Content

The upstream oil sector in Nigeria since the discovery of oil in the s has been dominated by international oil companies. To revise this situation and learning from the experience of countries with strong representation for indigenous local participation such as Norway and Brazil, Nigeria adopted the Marginal Fields Programme MFP allocating marginal oil and gas fields to Nigerian enterprises. The main aim of this joint action is to advance local participation in the oil industry, further liberalise the oil sector and create greater opportunities for jobs and entrepreneurship by Nigerians. This paper considers the potential of the MFP and the Act on achieving these objectives. Local content and the marginal fields programme: challenges for indigenous participation in the Nigerian oil industry. Oil, gas and energy law OGEL [online], 15 1 , pages Available from: www.

Nigeria considers changes to Nigerian content requirements in the oil and gas sector

Increasing globalisation has made it even more imperative for countries to 'validly' protect their economies through strategic initiatives including promoting local content LC and import substitution. However, since the mids, Nigeria liberalised her investment environment by enacting laws repealing the indigenisation laws, and strict exchange control regime as well as enacting the Nigerian Investment Promotion Commission NIPC Act, Cap. N LFN, which generally allows foreign participation in any Nigerian enterprise. However, to achieve incremental fulfilment of its social obligations, especially creation of opportunities for Nigerians - it is essential that government put in place machineries to implement a holistic LC agenda. This article first of a two part series examines critical issues in Nigeria's LC development plan and implementation strategy from a multi-sectoral perspective focusing on the oil and gas and maritime sectors.

Local sourcing. The new law seeks to increase indigenous participation in the oil and gas industry by prescribing minimum thresholds for the use of local services and materials and to promote the employment of Nigerian staff in the industry. The Local Content Act derives from the Nigerian Content Policy which seeks to promote active participation of Nigerians in the petroleum sector without compromising standards.

The Act has been instrumental to the promotion of the development and utilization of indigenous capacities in Nigeria, and we expect that the progress made will be consolidated for greater impact in the years to come. The Bill seeks to, among others, extend the application of the local content principles and philosophy to the following key sectors of the economy - Information and Communications Technology, Power, Solid Minerals, and Construction. We are reviewing the Bill and will issue a detailed newsletter on it in due course. In the interim, it is important that the industries that may be impacted by the new legislation closely follow this development.

TRENDING LEGAL ANALYSIS

Subai, Pereowei, author. Available Online. Add to List. Author Subai, Pereowei, author. Description 1 online resource.

Prior to the enactment of The Nigerian Oil and Gas Industry Content Development Act popularly referred to as the Nigerian Content Act , the Nigerian oil industry was originally the exclusive preserve of the International Oil Companies IOCs and other expatriate companies in areas ranging from exploration and production, trading as well as service operations. Attempts by previous administrations to introduce local content policies were ineffective and impotent largely as a result of the absence of an appropriate legal framework to drive such policies.

The Act establishes a comprehensive local content regime that enshrines legal measures which promote the patronage of Nigerian products and services by operators in the Nigerian oil and gas industry. In this regard, the article suggests that the exemptions under Article 4 of the TRIMS Agreement, which permit a WTO member whose economy is in the early stages of development and can only support low standards of living to temporarily apply local content measures, can be applied by Nigeria to justify the oil and gas industry local content measures under the Act for the purpose of promoting economic development and improving living standards in the country. AJOL and the millions of African and international researchers who rely on our free services are deeply grateful for your contribution. Your donation is guaranteed to directly contribute to Africans sharing their research output with a global readership. Skip to main content Skip to main navigation menu Skip to site footer.

В первый раз в жизни. Мидж стояла на своем: - Но, сэр. Коммандер Стратмор обошел систему Сквозь строй.

0 Comments

LEAVE A COMMENT