Current Industry Issues in Nigeria 2018
Nigerian Oil and Gas Industry Content Development Act (NOGIC Act) The main thrust of the NOGIC Act (The Act) is to increase the level of Nigerian Content in the Country’s oil and gas industry.
Nigerian Content has been defined in the NOGIC Act, as: “the quantum of composite value added to or created in the Nigerian economy by a systematic development of capacity and capabilities through the deliberate utilization of Nigerian human, material resources and services in the Nigerian oil and gas industry”.
NOGIC Act provides that first consideration shall be given to Nigerian independent operators, goods and services and also to Nigerians in employment and training. All fabrication and welding activities carried out in the industry must be performed in-country.
The Minister of Petroleum Resources shall consult with the relevant government agencies on the appropriate fiscal incentives to grant to companies who establish facilities, factories, production units or other operations in Nigeria for the purpose of manufacturing goods and providing services which were previously imported.
The Act provides for the establishment of the Nigerian Content Development and Monitoring Board (the Board) to monitor, coordinate and implement the provisions of the Act.