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Nigerian Local Content Update

Nigerian Local Content Update

This publication provides information on current developments in the Nigerian Local Content (NLC) space.

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Wole Obayomi

Partner & Head, Tax, Regulatory & People Services

KPMG in Nigeria

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Nigerian Local Content Update

We hope that you find the insights in the publication useful.

1. 10th anniversary of the Nigerian Oil and Gas Industry Content Development Act, 2010 (NOGICDA)

By April 2020, the NOGICDA would have been in force for 10 years. The Act has been instrumental to the promotion of the development and utilization of indigenous capacities in Nigeria, and we expect that the progress made will be consolidated for greater impact in the years to come.

2. Imminent repeal of the NOGICDA

A Bill has been proposed for an Act to repeal the NOGICDA and enact the Nigerian Content Development and Enforcement Act.

The Bill seeks to, among others, extend the application of the local content principles and philosophy to the following key sectors of the economy - Information and Communications Technology, Power, Solid Minerals, and Construction.

We are reviewing the Bill and will issue a detailed newsletter on it in due course. In the interim, it is important that the industries that may be impacted by the new legislation closely follow this development.

3. The Nigerian Content Development and Monitoring Board (NCDMB or “the Board”)’s 2020 focus

At the beginning of the year, the NCDMB via its website, www.ncdmb.gov.ng, outlined the following as its focus areas in 2020:

- Technical capability (including commissioning of a 5,000bpd modular refinery and training of 1,000 teachers in Science, Technology, Engineering and Mathematics education); 

- Compliance and enforcement (including the roll-out of a local content implementation recognition programme);

- Sectoral and regional market linkages (extending its collaboration with other sister agencies and MDAs with a view to improving patronage of local companies);

- Enabling business environment (including commencement of an annual stakeholder survey);

- Organisational capability (further developing the capacity and capability of staff members);

- Regulatory environment (working with the Office of the Minister of State for Petroleum Resources for sign-off of the Ministerial Regulations, and the Nigerian Content Committees in the Senate and the House of Representatives for extension of coverage of the NOGICDA);

- Collaboration and stakeholder engagement;

- Funding (implementing modalities to extend the Nigerian Content Intervention Fund to selected targeted stakeholder groups), and

- Research and development.

The execution of these initiatives will go a long way towards the attainment of the objectives of the Board’s 10-year strategic roadmap, one of which is to achieve 70% local content by 2027.

Click to download and read more on this update.

© 2020 KPMG Professional Services, a partnership registered in Nigeria and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.

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