Eight years after the Nigerian Oil and Gas Industry Content Development Act (NOGICDA or Act) was enacted, the landscape for Nigerian (indigenous) companies executing relatively large oil and gas projects has begun to change.
In the forefront of this change is the Nigerian Content Development and Monitoring Board (NCDMB), which has been implementing the provisions of the law. We provide below, another update on the operation of the law and the events that are likely to shape its success in the years to come.
1. Possible review of the NOGICDA
The NCDMB and the Senate Committee on Local Content organized a capacity-building workshop in March 2018. At the workshop, the Senators highlighted the urgent need to:
• amend the NOGICDA to clarify some provisions in the law that are considered to be vague and ambiguous in their expression, revisit the waiver provisions, rephrase the section on penalty for effectiveness, and undertake a holistic review and repackaging of the Act to cover other sectors of the economy and reflect current realities;
• resuscitate technical and vocational education to facilitate human capacity development; and
• reform and reorganize the curriculum of science, engineering and technology courses offered in Nigerian tertiary institutions to meet the current requirements of the oil and gas industry.
We expect the upper house to follow up this initiative with amendment to the law Act to reflect the proposed changes. However, any proposed amendments to the NOGICDA should be exposed to all the stakeholders to ensure that their view points are considered before enactment of the amended legislation.
Click to download and read the full issue on this newsletter.
© 2018 KPMG Professional Services in Nigeria, a limited liability company 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.