There is a domination of foreign interests in major activities in the Nigerian oil and gas sector like exploration, drilling, production, well intervention and service provision. The industry remains primarily controlled and managed by foreign multi-national companies, and only minor contracts are being awarded to local contractors.
History of Local Content in Nigeria
The Nigerian government in order to increase local industry’s participation in the oil and gas industry of Nigeria, enacted an Act titled the Nigerian Oil and Gas Industry Content Development (NOGIC) Act ( “the Act”), in April 2010. Local content requirements (LCR) have been made legally mandatory, which implies that foreign companies involved in exploring and exploiting the resources in Nigeria, are forced to include indigenous companies.
Having established the purpose for which the Act was established, it is being made mandatory for all regulatory authorities, operators, contractors, subcontractors, alliance partners and other entities involved in any project, operation, activity or transaction in the Nigerian oil and gas industry to consider Nigerian content as an important element of their overall project development and management philosophy for project execution.
The act further in line with protecting the locals in the oil and gas industry makes it mandatory for multinational and international companies in the industry working through their Nigerian subsidiaries shall demonstrate that a minimum of 50% of the equipment deployed for execution of work are owned by the Nigerian subsidiaries
Benefits of Local Content
One of the major importance of getting registered with the board are stipulated is first consideration in the award of oil blocks, 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 fulfilment of specified conditions;
Compliance with the NOGIC Act and promotion of Nigerian content development is now made a major criterion for award of licenses, permits and any other interest in bidding for Oil exploration, production, transportation and development or any other operations in Nigerian Oil and Gas industry. In the bidding for any license, permit or interest and before carrying out any project in the Nigerian oil and gas industry, an operator is required to submit a Nigerian Content Plan to the Board demonstrating compliance with the Nigerian content requirements.
Nigerian Content Plan Compliance Certificate
The Board shall then review and assess the plan and, if satisfied that the plan complies with the provisions of this Act, issue a Certificate of Authorization ("the Certificate') to the operator for that project. For the purpose of registration, the NOGIC has created an online platform (NOGIC Joint Qualification System), where eligible companies in the oil and gas industry can assess relevant information and guidelines on the operation of their activities. Applicants are required to create a profile on the platform and upload the required documents and information.
After creating the online profile, the individual upon successful login is required to update Profile (copies of all claimed certificates should be uploaded):
• Basic Data
• Educational Qualification
• Industry Certification
• Job Experience
• Industry Training
To create a Service Company profile on the NOGIC JQS portal, applicant is required to send the following listed requirements to the required email address for account creation:
Letter of intent (Covering Letter)
CAC information (CAC certificate, Form CO2 and CO7)
DPR Registration Certificate
Name of company
Default company email address for system administrator account eg. Info@company.com
To create an Operator profile on the NOGIC JQS portal, applicant is to send the following listed requirements to the required email address for account creation:
Joint Venture Agreement or Evidence of operating license
Default company email address for system administrator account e.g. Info@company.com
Other profile information should be updated upon successful log in.
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