FG reserves N5billion contracts to wholly owned Nigerian companies

The Federal Government, in line with the Nigerian Content Act,2010, will now award, to only wholly owned Nigerian companies, contracts for projects within the range of N5 billion.

Against this backdrop, 15 wholly owned Nigerian companies were recently awarded the contracts for 21 Category C projects that range from N5 billion and below.

The Minister of Works, Mr Mike Onolememen, made this pledge when he received members of Nigerian Society of Engineers, NSE, led by its president, Engr.  Ademola Olorunfemi.

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FG Moves to Enforce Content Act in Crude Oil Transportation

The Nigerian Content Development and Monitoring Board (NCDMB), in line with the provisions of the Nigerian Content Act which stipulates that crude oil should be transported with Nigerian vessels, has moved to ensure compliance with the Act.

THISDAY reports that three years after the Act was enacted, no Nigerian vessel has been involved in the transportation of crude oil.

The Nigerian National Petroleum Corporation (NNPC) made the matter worse when it attempted to exclude indigenous companies from participating in the lifting of crude oil in its 2012/2013 guidelines.

Due to the intervention of the NCDMB, the guidelines were revised to encourage local participation and interested applicants were required to provide commitment from prospective shippers, “that a minimum of five slots per cargo shall be set aside for ocean-going attachment of Nigerian cadets for the purpose of obtaining international certification”.

“Interested applicants must submit a Memorandum of Agreement (MoA) with shippers demonstrating a credible strategy to grow Nigerian equity in the tankers nominated to lift allocated Nigerian crude to 25 per cent by 2014 and 90 per cent by 2017. It should be noted that evidence of Nigerian equity in the nominated tankers prior to conclusion of the process shall give trader competitive advantage,” said the guidelines.

The guidelines also required interested applicants to submit a detailed Nigerian Content execution strategy to the satisfaction of the NCDMB, clearly setting out its Nigerian Content commitments for subcontracting in some selected areas of the economy.

These areas include insurance and legal services; banking and financial services; training and capacity building and cargo inspection and survey.

Speaking recently at a conference organized by Energy Correspondents in Lagos, the Executive Secretary of the NCDMB, Mr. Ernest Nwapa stated that since the guidelines were issued, many indigenous players had demonstrated a commitment to ensure that Nigerian-flagged vessels are involved in the transportation of the country’s crude oil.

Nwapa confirmed that no Nigerian vessel was involved in the transportation of the country’s crude, contrary to the provisions of the Nigerian Content Act.

He, however, disclosed that many Nigerians had approached the board with equity arrangements with reputable tanker owners aimed at ensuring the transportation of Nigerian crude with Nigerian vessels.