Local content or local champions?

Self-containment is a gift which goes hand in hand with self-sufficiency and self-possession. In every sphere and space of life, beyond the experiment of two heads being better than one, it pays when on one`s own, one can summon many of the resources needed to lead a productive life.

This applies to humans as much as it applies to non-humans too. When a system is self-contained, self-sufficient and self-sustaining, it tends to minimize waste while sending productivity and efficiency skyrocketing.

Nigeria is Africa`s most populous country. In fact, the country holds the distinction of being the most populous Black Country on earth. Whether this distinction has been a crown or a curse is yet to be fully determined.

However, whether one thing is more a curse than a blessing is no longer in doubt. Nigeria is Africas largest oil producer. If the significance of this fact might be lost in the soot of obscurity that sits over most of Africa, one only needs to look in the direction of Saudi Arabia, the worlds largest oil producer, to find out just how significant a role oil plays in the global economy and global politics. While many mock the kingdom for its insularity and especially its abominable human rights records, the country continues to pull strings in significant portions of the global economy and global politics.

Nigeria has not been able to exert similar influence in the world or at least in Africa as a result of its oil reserves. Being about the sixth largest producer of the black gold in the world, the country should not be caught in no man`s land in affairs in Africa. However, and sadly, that appears to be the case as a toxic mix of corruption, bad governance and a startling absence of structure and justice has ensured that a blessing has almost become a curse.

Yet, the business of oil goes on. Oil exploration is unrelenting in the Niger Delta as the oil and gas industry thrive. There is some kind of structure to the oil industry in Nigeria one that would appear superior to the method in the madness of those involved in illegal oil theft in the country as well as the operation of illegal oil refineries. It is into this structure that the whole conversation about local content comes in.

It has now been eleven years since the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, otherwise known as the local content law was enacted. Its implementation, benefits as well as efforts to extend the legislation to other sectors have so far suffered mixed fortunes.

It was basically a legislation meant to improve indigenous participation in the oil the oil and gas industry. It was essentially an attempt to see Nigerians control everything about their most precious natural resource. But how has it fared?

How has the implementation of a law which provides among other things that Nigerian independent operators shall be given first consideration in the award of oil blocs, oil field licenses, oil-lifting licenses and in all projects for which contract is to be awarded in the Nigerian oil and gas industry subject to the fulfillment of such conditions as may be specified? How has a law which provides that exclusive consideration shall be given to Nigerian indigenous service companies which demonstrate ownership of equipment, Nigerian personnel and capacity to execute the work fared?

Of course, an immediate benefit of the law has been to channel resources towards building indigenous capacity which has in turn translated into Nigerians and Nigerian companies acquiring the technical know-how that have now served to level the Nigerian oil and gas landscape hitherto dominated by expatriates.

On a positive note, this has helped save the country outrageous sums of money in capital flight as well as jobs. This has also led to more government revenue, more jobs, more skills, and less dependency on foreign countries with the resultant gains for national security.

The law also led to the establishment of the Nigerian Content Development and Monitoring Board which was essentially created to map out a content plan, supervising, coordinating, monitoring and generally implementing the local content Act which applies to all regulatory authorities, operators, contractors and subcontractors in the nation`s oil and gas industry.

It is no surprise that the oil and gas industry which is the source of so much of Nigerias revenue has long been the subject of so much interest within and outside Nigeria. And it is not inconceivable to attempt to replicate what has been a success in theblack gold’ industry in other sectors of the Nigerian economy with the aim of producing even better results.

But what about the heinous injustices visited on the Niger Delta environment by activities in the oil and gas industry and just how far can local participation in the oil and gas sector can go in delivering justice to the victims?

Also, has local content contributed or checked the menace of oil theft which is currently hemorrhaging the oil and gas industry and causing Nigeria unaccountable losses?

It is easy to say we want Nigerians in charge of everything Nigerian. But do we invest efforts to ensure that when the time comes for Nigerians to take the lead, Nigerians will be ready?

Nigerian football, or better put, the coaching job of the Super Eagles of Nigeria provides an illuminating example. We always clamour for an indigenous coach when our indigenous coaches are not up to scratch. We always want homebased players in the team when our league is below standard. We want to be allowed to do everything when we are yet to demonstrate

Decisive or deceptive? Only time will tell.

 

 

 

Kene Obiezu,

keneobiezu@gmail.com

 

 

Subscribe to our newsletter for latest news and updates. You can disable anytime.