Niger Delta
‘Nigeria Content Act, Yet To be Felt’
A community leader in Eket, Akwa-Ibom, Chief Assam Usoro, has said that the Nigerian Content Act was yet to be felt by indigenous oil firms in the area.
The Nigerian Content Law was signed by President Goodluck Jonathan on April 22, 2010.
Clauses 2 and 3 of the Nigerian Content Act provide that indigenous Nigerian companies shall be given first consideration in the award of all contracts in the oil and gas sector.
Usoro said in an interview in Eket that the expected benefits of the legislation was yet to be felt by oil producing communities.
In an assessment of the oil industry since the enactment of the law in April 2010, the community leader noted that the requisite infrastructure to enable the Act succeeds was yet to be put in place.
Usoro, who is the Chief Executive of Assamekon Nigeria Ltd, an indigenous oil field services firm, observed that the international oil firms had all expressed support for the Act.
He, however, said that patronage of local contractors was still marginal, and urged the stakeholders in the sector to chart a way forward to enable the legislation achieve the desired goals.
Usoro, who identified the stakeholders as the multinational oil firms, indigenous contractors, entrepreneurs, and government said that technology transfer takes time and commitment.
“The law in itself is good but it cannot change things in isolation. The government is expected to fix the roads, power and other infrastructure as well as security.
“Insecurity has dissuaded a lot of investors and again technology is not easy to steal and develop, even though other nations have done it.
“No entrepreneur will put down money until the facilities and climate are ready, that is where the government comes in.
“We are waiting for the development projects in the Niger Delta region to come on stream.”