Oil and gas: NASS will not allow marginalisation of indigenous companies

Oil and gas: NASS will not allow marginalisation of indigenous companies

 

The Chairman Senate Committee on Local Content, Sen. Solomon Adeola, says the National Assembly will not watch indigenous companies fold up as a result of marginalisation.

Adeola made this known to newsmen during a visit of the National Assembly Joint Committees on Local Content to Sole want, an indigenous pipe coating company in Port Harcourt on Tuesday.

The lawmaker, who lamented reports of marginalisation of indigenous companies, particularly in the oil and gas industry, said local content initiative was introduced to curb such.

He said if the ugly trend, which International Oil Companies (IOCs) were often accused of, was not tackled, it would have adverse effect on the economy.

“The local content initiative is a growing phenomenon in developing nations that have suffered the effect of importation of investments, labour and technology in the critical sectors of the economy.

“The initiative aims at encouraging domestic investment, promote the empowerment and employment of indigenes and facilitate technology transfer, in order to expand the economy.

“The need for the greater inclusion of the legislature in the initiative is believed to further enhance the attainment of the idea and this led to the inauguration of the Senate’s Committee on Local Content in November of 2017 by the President of the Senate, Dr Bukola Saraki.

“The committee was inaugurated with the mandate to ensure the transfer of technology in the oil and gas industry, ensure the use of local manpower by companies cited in Nigeria.

“It was also inaugurated to develop policies and make laws that would ensure the patronage of local manufacturing industry by Nigerians and carry out oversight function of the Nigerian Content Development and Monitoring Board as well as other operators in the industry.

“The Senate Committee seeks to significantly add value to the local content initiative.

“It also seeks to increase impact and enforcement of the Local Content Act as well as work with the Nigeria Content Development Management Board.

“This is to promote domestication and domiciliation of oil and gas activities among the leading industry operators,” he said.

Adeola said pursuant to resolve by the parliament to support indigenous companies to boost the economy, it had commenced amendment of the local content law, to expand its scope for maximum result.

He added that “it is in the interest of furthering the achievements made by the local content initiative that the committee has resolved to pursue its three cardinal focus of law and policy development, institutional strengthening and oversight.

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