The Local Content Act was enshrined into Nigerian Law on the 22nd of April 2010. This act sets out specific work scopes that must be performed in Nigeria and it guarantees fair access to foreign companies. The Act seeks 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 employment of Nigerian staff in the industry.
It provides privileges for indigenous companies by making sure there is first consideration for the training and employment of Nigerians and it sets out the criteria to be used by the operator and the contractor in assessing how first consideration is to be given to Nigerians in the process of evaluating bids for goods and services required for projects. This act directly affects operating companies, contractors, sub contractors and service providers in the oil and gas industries. In addition, the Act also affects, professional services engagements including legal and financial services in the oil and gas sectors of Nigeria
CONTENT OF THE LAW
Briefly, the Nigerian oil and gas industry seeks to increase indigenous participation in the sector by prescribing a minimum threshold for the use of local services and materials and to promote transfer of technology and skill to Nigerians in the industry. To actualize this, a Nigerian Content Development and Monitoring board (The Board) has been established and vested with the responsibility of implementing the provisions of the Act, making procedural guidelines and monitoring compliance by operators within the industry.
The Local Content Act can be divided into several segment set out below.
The provisions of the Act which are of general application are contained in section 3, section 7 and section 11 of the Act. These general provisions are developed in the body of the Act by providing further details of steps, procedures and obligations imposed on operators or on the activity performed.
Resources, A. (2024). Nigeria Local Content Act of 2010. Afribary. Retrieved from https://afribary.com/law/nigeria-local-content-act-of-2010
Resources, Africana "Nigeria Local Content Act of 2010" Afribary. Afribary, 08 Jun. 2024, https://afribary.com/law/nigeria-local-content-act-of-2010. Accessed 07 Sep. 2024.
Resources, Africana . "Nigeria Local Content Act of 2010". Afribary, Afribary, 08 Jun. 2024. Web. 07 Sep. 2024. < https://afribary.com/law/nigeria-local-content-act-of-2010 >.
Resources, Africana . "Nigeria Local Content Act of 2010" Afribary (2024). Accessed September 07, 2024. https://afribary.com/law/nigeria-local-content-act-of-2010