23 April 2010

Nigeria: Jonathan Signs Local Content Bill Into Law

Acting President Goodluck Jonathan has directed that exclusive consideration should henceforth be given to Nigerian indigenous service companies which demonstrate ownership of equipment, Nigerian personnel and capacity to execute jobs in the Nigerian Oil and Gas Industry.

He gave this directive yesterday while giving his assent to the Nigerian Oil and Gas Industry Content Development Bill 2010 which seeks to make indigenous participation in the nation's oil industry obligatory.

Jonathan said the new law will "address the compelling need for us as a nation to have indigenous participation in the oil industry", emphasizing that it shall "apply to all matters pertaining to Nigerian content in respect of all operations or transactions carried out or connected with the Nigerian Oil and Gas Industry."

He said the Nigerian Content Development and Monitoring Board established in accordance with the local content Act shall make procedures to guide, monitor, coordinate and implement the provisions of the new law to ensure and enforce measurable and continuous growth of Nigerian content in all oil and gas operations in the country.

Reacting to the development, Minister of Petroleum Resources Mrs Diezani Alison- Madueke said "The Nigerian Content Law has the potential to generate over 30,000 jobs in the next 5 years and has far reaching implications for the issues of technological advancement, long term cost effectiveness, post amnesty programs in the Niger Delta and the improved impact of the Oil & Gas Industry on our National GDP."

GMD of the NNPC, Mallam Shehu Ladan said the multiplier effect of this new law is enormous, adding that the Bill is timely because it sets the stage for the anticipated growth that the PIB.

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