Reps probe over $1bn Nigerian local content fund

The House of Representatives on Thursday unveiled plans to probe the utilisation of $1 billion accrued into the coffer of Nigerian Content Development and Monitoring Board.

The fund was set up in line with Nigerian Oil and Gas Industries Content Development Act, 2010 which seeks to increase participation of local contractors and provide  credit facility and capacity building through the Nigerian Content Development Fund (NCDF).

The resolution was passed sequel to the adoption of the motion sponsored by Ferdinard Nwankwo, who frowned at the activities of the Board.

The fund, consists of one percent of every contract awarded to operators, contractors. sub-contractors, alliance partner or other entity involved in any project, operation or transaction in the upstream sector of the Nigerian oil and gas industry.

In his lead debate, Nwankwo who frowned at the stringent conditions for accessing the fund by indigenous companies, called for the review of the process.

He lamented that the failure of the Board to empower Nigerian companies over the years has further incapacitated contractors and personnel involved in the oil and gas industry, stressing that the sector is largely dominated by foreigners on the excuse that indigenous contractors lacked the competitive capacity.

Nwankwo lamented that the fund has been lying idle as “indigenous contractors were unable to access the fund due to rigid terms and conditions as well as discouraging process of application set by the commercial banks.”

The lawmaker also faulted the new terms and conditions initiated by the Board in July 2016, whereby the Bank of Industry was made custodian and manager of $100 million from the fund from which credit facilities can be granted to local contractors in the oil and gas sector.

In a related development, the House Committee on Local Content has directed oil and gas companies applying for expatriate quota to seek approval from Nigeria Content Development Management Board (NCDMB) before application to Federal Ministry of Interior.

Emmanuel Ekon, chairman of the committee issued the directive during a stakeholders meeting on expatriate quota for oil and gas companies in Nigeria.

Ekon who frowned at the persistent violation of the Nigerian oil and gas industry content development Act 2010 with respect to expatriate quota approval, observed that many companies persistently violate the provisions of the Act, frowned at the deprivation of Nigerians from exploring the abounding opportunities in the sector.

“Some of them have expatriates with no qualification or are not qualified to work in the industry.

“The provision for first consideration for employment and training is often ignored and many of them do not have offices in community of operations.

“Also training of Nigerians is very few as well as requirement for succession plan is often ignored,” Ekon added.

To this end, he urged Federal Ministry of Interior and Nigerian Immigration Services (NIS) to get approval from the Board before issuing or renewing expatriate quotas.