The Independent Petroleum Producers Group (IPPG) has called for a review of some sections of the Nigeria Oil and Gas Industry Content Development Act (NOGICD) 2010 to promote competition and increase investments.
Speaking at the 12th Practical Nigerian Content Forum hosted by the Nigerian Content Development and Monitoring Board (NCDMB) in Yenogoa, Abdulrazaq Isa, Chairman of the IPPG and CEO of the Waltersmith Petroman Oil Limited said: “Our industry is witnessing a transformational shift and this continues to underscore the repositioning of our industry.”
“As an industry, we must remain focused and rapidly exploit our vast hydrocarbon assets for the economic development of our nation. It is therefore important that we look inward to develop the socio-economic landscape of our country.”
“The NOGICD act 2010 is capable of unlocking the economic potential of Nigeria and being an enabler for rapid industrialization.”
Abdulrazaq urged the NCDMB to ensure that local content policies are evaluated and fit for purpose and not counterproductive to the industry’s growth and cost targets.
The IPPG Chairman identified the human capital development requirement of the act as a case point noting that it amounts to multiplication of levies and invariably leads to higher project costs as the companies themselves don’t benefits from the funding dedicated to developing human capital.
He also explained that the multiplicity of levies though unintended to promote local content participation is contributing to low compliance with the act and divestment of investments by foreign operators.
Abdulrazaq noted that the oil and gas industry is a global market and thus as much as the government wants to priotize local content, it must also make the industry globally competitive.
He highlighted that the government must contijue to recognize foreign oil and gas companies as important as they have a part to play in technology transfer pending when local players improve their capacity to support offshore exploration.
The IPPG Chairman also praised the NCDMB ES for raising the bar in local content development.
He noted that the Practical Nigerian Content has always provided a platform for fostering key colloborations in developing the NOGICD for local content development.
The 12th Practical Nigerian Content Feoum holding in Yenagoa, Bayelsa State is themed “Deepening Nigerian Content amidst divestments, domestification and decarbonisation.”