Tuesday, October 5, 2010

The Changing Landscape of the Nigerian Oil and Gas Sector: The Local Content Law.

Taking the Federal Government of Nigeria by its words, it would no longer be business as usual in the oil and gas sector of the Nigerian economy as President Goodluck Jonathan inaugurates the governing council of the Local Content Development Board. This board has been given the responsibility to reposition the petroleum sector for the benefit of the nation, following the enactment of the Nigerian Local Content Law.
Simply put, Local Content means the development of local skills, technology transfer, use of local manpower and local manufacturing in a country.

According to 234next newspapers, the president is not oblivious of the limitations of capacity in manufacturing for the upstream and downstream operation in Nigeria. He therefore wishes the country to follow the path of other nations where the application of local content has stimulated investments that transformed their economies.

In his words, "We must drive the implementation of this law in a manner that develops partnerships between local and international companies and government and the private sectors of the economy, including local banks, global financing institutions, manufacturing, agriculture, educational and research institutions...

In the same vein, relevant ministries, departments and agencies in the country were charged to develop initiatives that would enhance local capacities which will serve as a vehicle for transferring the technological experience inherent in the oil and gas industry to other critical sectors of the economy.

Last Word: Overseas companies that wish to gain strategic advantage over its competitors in the Nigerian lucrative oil and gas business should key into this initiative as quickly as possible. It benefits the company, its Nigerian subsidiary and the society as a whole.