Despite the enactment of the Nigerian Content Act in 2010 to jack up local participation in the oil and gas sector, the industry is yet to fully tap the benefits as outlined by the law, indications have emerged.
Only three service companies in the country have successfully accessed the Nigerian Content Development Fund which grew to $600 million in the last 7 years, Simbi Wabote, Executive Secretary of the Nigerian Content Development and Monitoring Board, has said.
Wabote lamented that contractors’ attitude was a major challenge towards realising the objectives of the law, adding that: “Despite the healthy growth of the fund, we are frustrated that it has not significantly addressed the purpose for which it was established by the act,” he said.
The NCDMB’s boss, who revealed that the level of local content achievement in the upstream industry is 28 per cent, said the development was too low.
He said in some cases, the International Oil Companies (IOCs)announced several billions of dollar contract to local firms but in actual fact a small fraction of the job especially fabrication is done in-country thereby reducing the volume of work given Nigerians.
Stakeholders in the oil and gas have therefore emphasised the need for accountability in the country’s oil and gas industry otherwise the already weakening confidence of foreign investors’ would be completely eroded.
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