However, community development is the process or effort of building. The case of sierra leone summary 3 pages a changed context for local content with the current downturn in the global markets for oil, gas and minerals, and slower global growth more generally, the role of local content regulation needs to be rethought. Nigerian content monitoring board the act establishes the nigerian content monitoring board the bdboard whi hhich is theregultlatory agency vestdted with the responsibility of regulating local content. Local content is major change from importer to producer will be resisted globally and locally.
The extractives for local content development community of practice. Local content meaning in the cambridge english dictionary. Drive impacts to host community level nigeria oil and gas industrial parks scheme. Local content policies offer exciting new potential for economic development in nigeria by encouraging economic activity, value addition, and job creation.
Overview of the nigerian oil and gas industry content. Local content is the value that an extraction project brings to the local, regional or national economy beyond the resource revenues. Pdf the nigerian state has been faced with various economic, social, political, educational, and development problems in all sectors of the nigerian. Inspite of the huge financial investment made by the nigerian government in the oil and gas industry of. Local content in oil, gas, and mining world bank group. Ncdmb and the implementation of the ncdf 1% tax local. The role of local content policy in local value creation. Local governments, at least in principle, deal with grassroots politics, i. Thus, the focus of this paper is to briefly explain the local content act and its implication on tvet and the nigerian economy.
In the middle east and north africa, where shell livewire is called intilaaqah, we trained 1,920 participants in 2017 52% of whom were women. The nigerian oil and gas industry content development act 2010 lists targets for progressive increases in local content. Promotion of linkage development is essential to enhance the contribution of the oil and gas industry to the macro economy. Local content policy, human capital development and. Every nigerian citizen young or old possesses a unique potential, this can only be better used depending on the awareness of opportunities. In addition, local content and other policies designed to increase incountry value have a dual nature ovadia 2012.
The targets for lc policy in increasing local content development were set progressively. Overview of local content regulatory frameworks in. Guidelines for nigerian content development in information. Petroleum exploration, development and production local content regulations, 2014. Foster measurement and implementation of local content. In nigeria, researchers assessed the enabling environment for private sector. Nigerian oil and gas industry content development act, 2010. Through nigerian content, nigeria may finally be able to make its oil wealth a blessing instead of a curse. Nigeria has been working to implement local content through a newly created agency, the nigerian content development and monitoring board ncdmb. Link oil and gas sector to other sectors of the economy. First, instruments are designed to encourage sourcing of. Local content development in the nigerian oil and gas. The nigerian local content development policy local content policy in nigeria started in 1971 through the establishment of the national oil company noc to promote the indigenisation policy in the oil and gas sector. Unctad commissioned an overview of local content regulatory frameworks in selected eccas countries in the oil, gas and mining sector as part of united nations development account project 1415p.
Pdf a novel concept, local content, in oil industry is gradually emerging. Noc became nigerian national petroleum corporation nnpc in 1977. The nigerian state has been faced with various economic, social, political, educational, and development problems in all sectors of the nigerian economy. Local content ng is designed to aid you better understand and utilize your untapped benefits from local content development in nigeria.
The execution of these initiatives will go a long way towards the attainment of the objectives of the boards 10year strategic roadmap, one of which is to achieve 70% local content by 2027. Local content and procurement requirements in oil and gas. The role of local content policy in local value creation in. A paper commissioned by revenue watch institute social funds in peru, korpela, 2009, makes. What matters when it comes to adopting local content. For local communities, decent mining company jobs that are safe, stable and fairly compensated. Local content broadcast in nigeria is meant to be a means through which the mass society experience culture. The nigerian oil and gas industry has developed, focusing on increasing indigenous participation in the industry. Presented at a regional workshop and project launching on ameliorating the structural effects of mineral resources in the economic. Countries can encourage local content through requirements and targets written in national laws. Local content regulation as a differentiator for inward investment in africa. Conceptualizing tvet in most advance economies, industrialization most certainly emanate from tvet kutz, 2001. The bill received presidential assent on 22 april 2010 and created a law to provide for the development of indigenous content in the nigerian oil and gas.
Best practice for local content development strategy. An important consideration is the journey local content development has taken in the context of the ogm sector in theory and practice. Local content policy, human capital development and sustainable business performance in the nigerian oil and gas industry james unam monday1 1 department of management and accounting, obafemi. Resourcerich countries are increasingly inserting requirements for local content local content provisions into their legal framework, through legislation, regulations, contracts, and. One of the first steps in this charge is to develop robust real local content local content referring to homegrown labour, services and resources, all things that nigeria has in swathes but. An overview of the nigerian oil and gas industry local. A serious attempt was, however, made in 2010 with the promulgation of the nigerian oil and gas development. Local content development is critical for countries like nigeria that are rich in natural resources but whose oil and gas sector has traditionally operated in isolation from the rest of the economy, thereby allowing minimal participation from local citizens in its development. Funding implementing modalities to extend the nigerian content intervention fund to selected targeted stakeholder groups, and research and development. This is reflected through the nigerian government initiative of increasing local content and ensuring that indigenous companies have a greater part in developing oil and gas assets. March 2017 recent developments on nigerian content law in the.
March 2017 recent developments on nigerian content law in. Local content policy in nigeria started in 1971 through the establishment of the national oil company noc to promote the indigenisation policy in the oil and gas sector. First, instruments are designed to encourage sourcing of local inputs, with a view to promote upstream linkages. Local content development in the nigerian oil and gas industry local content development is critical for countries like nigeria that are rich in natural resources but whose oil and gas sector has traditionally operated in isolation from the rest of the economy, thereby allowing minimal participation from local citizens in its development. Nigerias story of local content interventions in the oil industry. Petroleum local content and local participation regulations, 20 in exercise of the power conferred on the minister responsible for energy by section 22 of the petroleum commission act, 2011 act 821, these regulations are made this 5th day of july, 20. Implementation of local content in nigeria in a related development, the senate of the na, in september 2016, mandated its committee on petroleum upstream and gas to conduct a public hearing to investigate the implementation of local content in nigeria, with a view to determining the degree of compliance with the nogicda by industry operators.
Tied to national agenda chairman governing council is member of fec and direct report to. Local content development is critical for countries like. Local content development in the nigerian oil and gas industry. The local content act defines local content as the quantum of composite value added to or created in nigeria through utilization of nigerian resources and services in the petroleum industry resulting in the development of indigenous capability without compromising quality, health, safety and environmental standards. Nigerian content development fund the atact estblihtablishes a ni inigerian cttcontent dl tdevelopment fdfund managed by the board and funded through a 1% deduction at source of every contract awarded to any operator, contract, subcontractor, alliance partner or any other entity in any ppjroject. Why local content in africas extractive sector wont work. Nigerian content or local content is the equivalent of local value added to the development, design, fabrication and assembling of ict products in nigeria measured in monetary terms as a proportion of production cost or the proportion of indigenous manpower involved in the various stages associated. While a welldesigned local content framework is a valuable starting point, there are other factors that can shape their successful implementation aoun and mathieu 2015. Training and employment connects the local communities.
This c4dbased online collaboration platform connects policy makers, companies, academics and practitioners, to share and create knowledge around local content development in the extractive industries. The shell nigeria exploration and production company snepco, says its local content strategy was built around the national framework as developed by the. The nigerian oil and gas content development act of 2010 has provisions to. Abstract the petroleum industry in nigeria is the largest industry and mean generator of gross domestic product gdp in the west african nation. The passage into law of the nigerian local content bill is one of the significant developments for domesticating the oil and gas industry through local value additions to the local economy. Pdf towards sustainable local content development in the. Development policies and programmes university of calabar press. Local content in nigeria the guardian nigeria news. Maximize participation of nigerians in oil and gas activities.
Cited in o uchenna, towards sustainable local content development in the nigerian oil and gas. Linkage development can facilitate technology transfer and economic diversification. The board shall implement the provisions of the bill with a view to ensuring a measurable and continuous growth in nigeria content. A nigeria content development and monitoring board the board has been established and vested with the responsibility to implement the provisions of the act, make procedural guidelines and monitor compliance by operators within the oil industry. Local content development newsroom seplat petroleum. The nigerian oil and gas industry content development act the act is designed to enhance the level of participation of nigerians and nigerian companies in the countrys oil and gas industry. The nigerian oil and gas industry content development act 2010 was therefore signed into law on april 22 nd 2010 and aims to increase indigenous participation in the oil and gas industry by prescribing minimum thresholds for the use of local services and materials and to promote the transfer of technology and skill to nigerian labour in the. Many nigerians directly or indirectly linked with the oil industry all let of a sigh of relief as the new law was widely expected to create more opportunities for.
Nigeria that are rich in natural resources but whose oil and gas sector has traditionally operated in isolation. The enactment of the nigerian oil and gas industry development act in april, 2010 was greeted with much fanfare within the circles of nigerian businesses and professionals plying their trade in the nigerian oil and gas industry. The policy is designed to build the capacity of indigenous firms and to provide more opportunities for participation in business. Shell explains its local content strategy for nigeria. Oil and gas news in africa local content development. Measures to stimulate the use of local content in the extractive sector can be grouped into three main categories.
Pdf a conceptual model for local content development in. Strengthening the capacity of the economic community of central african states to. Stimulating direct local employment executive summary when a mining company arrives in an area, the promise of local employment is central to public debate in leastdeveloped, developing and developed countries alike. Integrate oil producing communities into the oil and gas value chain.
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