What does the Nigerian Content Act mean?
The Nigerian Content Act is a law targeted at promoting local participation in the oil and gas industry. The Act provides exclusive consideration for Nigerian indigenous service companies which demonstrate ownership of equipment, Nigerian personnel and capacity to execute jobs in the Nigerian oil and gas industry.
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What is key objective of the Nigerian Content Act?
The major objective of the Act is to promote local participation in the oil and gas industry for the overall benefit of the Nigerian economy. The overall goal is to domicile a greater spend of the industry in Nigeria.
Who is responsible for implementing the Act?
The Nigerian Content Development and Monitoring Board (NCDMB), as established in accordance with the provision in the Nigerian Content Act 2010.
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How will funding for implementation of the Nigerian Content Act be achieved?
The Nigerian Content Act provides for the establishment of the Nigerian Content Development Fund for the purpose of funding the implementation of the Nigerian Content Act in the oil industry. This also entails a provision in the Act for the reduction of 1% of every contract sum as contribution to the NCDF
What are the functions of the Nigerian Content Development and Monitoring Board?
- Implementing the provisions of the Act.
- Implementing any Regulations made by the Minister in relation to the Act.
- Supervising, coordinating, administering, monitoring and managing the development of the Nigerian content in the Oil and Gas Industry.
- Appraising, evaluating, approving, reviewing and awarding Certificate of authorization to the Nigerian Content Plans and Reports submitted.
- Setting up audit procedures and conducting regular audits for purpose of monitoring and implementing the Act.
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Who manages the Fund?
The Fund will be managed by the Nigerian Content Development Board.