Indigenous private sector players exercising active roles in the power sector value chain will henceforth heave a sigh of relief by being an active player in the power sector value chain, as the Nigerian Electricity Regulatory Commission (NERC) unveils regulations on National Content Development for the power sector, 2014.
Already, Manufacturers Association of Nigeria (MAN) through its president, Mansur Ahmed, is already seeing more opportunities in the power sector value chains for indigenous companies, with some of the provisions in the regulations retaining greater stakes for local indigenous manufacturers.
NERC unveiled the specifications in a regulatory document titled: “Regulations on National Content Development for the Power Sector 2014,” on Thursday in Abuja.
In the regulations, priority is giving to indigenous industry players. For instance, in Nigerian content and joint qualification system (JQS), Part 2 (4) a. “All licensees shall have the development of Nigerian Content as a key component of their philosophy in their general operations including the execution of their projects.
Also, in JQS, part 2(6)a. “All licensees shall develop a framework for the develop a framework for the development and promotion of Nigerian content; B) all licensees shall maintain an annual Nigerian content Performance report covering all their projects and activities in the previous financial year. C) The Commission shall review the reports, and issue relevant directives, and d). The Commission shall promote continuous growth in Nigerian content in recruitments, procurements, and implementation of projects, operations, and consultancies.”
Speaking at the event held, NERC chairman, James Momoh, said the unveiled minimum specifications were in line with the Executive Order 5 signed by the President Muhammadu Buhari on February 2 2018 in Abuja, which aimed to increase local content in Public Procurement with science, engineering and technology components.
He further urged Nigerians and indigenous manufacturers and other stakeholders to ensure that the regulation succeeded while enhancing growth of the gross domestic product (GDP) through local content promotion.
Earlier in his remarks, Babatunde Fashola, Nigeria’s minister for power, works and housing, represented by Ahmed Abu, director of procurement in the Ministry, said the present administration was riding on the Executive Order to promote application of science, technology, and innovation towards achieving the nation’s development goals across all sectors of the economy.
Fashola said, “The President, Pursuant to the authority vested in him by the constitution, ordered all procuring authorities to give preference to Nigerian companies and firms in the award of contracts, in line with the Public procurement Act 2007.”
The Executive Order also prohibits the Ministry of Interior from giving visas to foreign workers whose skills are readily available.
The Nigerian Electricity Supply Industry is heavily dependent on imported human resources, material, equipment and services. Experts express concern that the huge dependence is vulnerable to foreign exchange availability and rates, to the extent that contracts for gas and generation are denominated in foreign currency.
NERC assured that the regulations were geared towards addressing concern of huge dependence and vulnerability to foreign exchange by deliberately utilising Nigerian human and material resources, goods, works and services in the industry.
