The
Executive Secretary, Local Content Development Agency, Mr. Kesiye Wabote, has
said that about $380 billion capital flight was saved by the Federal Government
from the beginning of the Local Content Act in 2010.
Wabote
disclosed this yesterday during the public hearing organised by the Senate
Committee on Petroleum (Upstream) and Gas titled, “Implementation of Local
Content and compliance with Nigerian Oil and Gas Industry Content Development
Act by industry operators and investigation into the utilisation of the
Nigerian Content Development Fund.”
The scribe,
who also represented Minister of State for Petroleum Resources, Ibe Kachikwu,
said before the Act was enacted, fabrication of equipment for the oil and gas
industry was done abroad leading to millions of job losses.
Wabote
further pointed out that about $15 billion had been ploughed back into the
Nigerian economy while about 56 per cent of fabrication works are now being
done in the country. He said Nigeria now handles 60,000 tonnes of fabrication
works in the sector, while pipes, which used to be imported into the country
and coated by foreign companies, are today being coated in Nigeria.
The Senate
President, Bukola Saraki, who declared the public hearing open, represented by
the Senate Leader, Ahmed Lawan, said that through a motion brought before the
Upper Chamber, senators had expressed concern that the Local Content Act was
not effectively implemented.
Saraki said
the Act seeks to provide local values to oil industry, adding that it should
not be misconstrued as an indigenisation policy to sack the expatriate oil
workers.
In the same
vein, Chairman of the Senate Committee on Petroleum (Upstream), Taye
Alasoadura, said the public hearing was an opportunity for crucial stakeholders
to make submissions that would help in making recommendations to the Senate for
amendment of the Act and effective implementation of the Local content Act.
Guardian
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