Nigerian Content Bill timely, will save economy — Ajumogobia
By Tunde Opalana
One-time Minister of State for Petroleum Resources, Odien Ajumogobia (SAN) has described the Nigerian Content Development and Enforcement Bill pending legislative passage, as a timely intervention for the development of local contents of Nigerian industries, Daily Times gathered.
Ajumogobia said the proposition and preparation for the actualisation of the bill came at the right time when the global pandemic, COVID 19 has exposed the vulnerability of the Nigerian economy.
He argued that the development of the bill will afford the government and drivers of the economy to look inward.
The former Foreign Affairs Minister made this known Thursday while delivering a paper titled “Technical Review of the Local Content Development and Enforcement Bill and its Implication for the Nigerian Economy” on the second day of the Virtual Consultative Summit on Nigerian content hosted by Senator Teslim Folarin and Hon. Legor Idagbo, chairman, Senate, and House Committee on Local Content respectively.
The Bill seeks to promote indigenous participation in key sectors of the economy; Information and Communications Technology (ICT), Mining, Construction, Oil and Gas, and Power.
Ajumogobia was optimistic that the Nigerian economy will be better at the implementation of the bill when the experiment of local content development in the oil and gas sector is replicated in other sectors of the economy.
However, he said the bill will not be conflicting with the oil and gas sector bill but create an understanding of the immediate and wider implications of the Nigerian Oil & Gas Industry Content Act 2010 Amendment Bill (2020).
Speaking on the unintended consequences of the bill, the former minister said “onerous obligations on foreign entities may inhibit foreign direct investment (FDI)” and that it may encourage the placement of ineligible Nigerians in positions.
Welcoming participants, Senator Teslim Folarin said unlike the Local Content Act, the Bill will establish an Enforcement Board and a Governing Council for each of the sectors and that the Governing Council will work with the Minister in charge of each sector to effect the implementation of the Bill.
The Bill, he said, will also provide a framework for governance, monitoring, and enforcement across all the selected sectors.
The committee chairman said the Bill will further provide that contracts with a total budget exceeding USD$1 million in all the sectors shall have a Labour Clause mandating the use of a minimum percentage of Nigerian labour in specific cadres as may from time to time be prescribed by the Board.
Folarin commended the expert and brilliant presentations by the Executive Secretary, NCDMB, Engr. Simbi K. Wabote and Hon. Justice Nelson Ogbonnaya, Justice of the Industrial Court, on the opening day, which he said, elicited vibrant contributions from all participants.
He as well solicited useful contributions saying “we are all aware that the bills are still at the proposal stage therefore, your useful comments will aid the Committees in the passage of the Bills.
“Today, we will be expanding the Nigerian Content possibilities through legislation to allow other sectors of the economy to accrue benefits arising from effective National Content Development and Management.
“The major outcome that we expect from this summit is a legal framework to strengthen local content in the oil and gas sector and extend the initiative to other sectors of the economy to develop capacity and capabilities of Nigerians.”
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