BY FOLUSHO ALADE, ABUJA
The House of Representatives has said the Nigerian Local Content Development and Enforcement Bill 2020 will help fast-track developmental growth in the country post COVID-19 era and make Nigeria even more globally competitive.
Speaking on the need for the quick passage of the bill on Monday, the Spokesperson of the House of Representatives and Chairman House committee on media and public affairs, HONOURABLE BENJAMIN KALU said it has become imperative to extend local content policies beyond the Petroleum Industry. He also argued that the country should extend local content to other critical sectors like, ICT, Manufacturing, Agriculture, Power, Solid Minerals, Construction and Health through comprehensive legislation.
According to KALU: “This is vital to preserving Nigeria’s socioeconomic independence and enhancing the ability of indigenous businesses to exploit local opportunities, while staying globally competitive.
Speaking further, KALUsaid :”So far, the key local content legislation in Nigeria is the 10-year old Nigerian Oil and Gas Industry Content Development Act 2010 (NOGICDA), which established the Nigerian Content Development and Monitoring Board (NCDMB) but is limited to the oil sector.
“However, as we celebrate the Africa Day (May 25), a day commemorating Africa’s independence, liberation and socioeconomic freedom from foreign dominion and exploitation, and in the light of the current COVID-19 induced global economic position which has forced countries to look inwards for economic growth and sustainability.
“It has become imperative to extend local content policy beyond the Petroleum Industry to other critical sectors like, ICT, Manufacturing, Agriculture, Power, Solid Minerals, Construction, Health, etc, through comprehensive legislation”. KALU said.
The Bill which passed second reading on the floor of the House of Representatives, on Tuesday, 19th May, 2020 was sponsored by the Speaker, House of Representatives, RT. HON. FEMI GBAJABIAMILA; Chairman, House Committee on Nigerian Content Development and Monitoring, REP. LEGOR IDAGBO and 7 others.
Enumerating the Socio-economic benefits of the Bill in Nigeria’s Post Covid-19 era, KALU said :
1. The Bill, when passed and assented to, will promote local manufacturing and economic diversification with focus on ICT, Agriculture, Solid Minerals, Hydrocarbon Refining and Power.
It provides for incentives to encourage local processing of hydrocarbon resources, export of processed minerals and agricultural commodities, local manufacturing of equipment, machinery, spares, chemicals, ICT hardwares, development of softwares and others.
The Local Content Bill also provides for standardisation of locally made goods and locally sourced raw materials to make them competitive in the international market.
2. The Bill makes it mandatory for Nigerian made goods and services in all public procurements; Nigerian content philosophy as a key requirement in all public sector procurements; provides for creation of local content departments in MDAs and provides requirement for Nigerian Content Plan (NCP) on major projects (above N100m) outlining minimum Nigerian Content thresholds for materials, labour and services required on the project.
It also strengthens Nigerian content requirements in solicitation of bids and requires Nigerian content compliance certificate as a pre-condition for contract awards; while recommending the creation of Nigerian Content Committee (NCC), to develop economy-wide local content policy.
3. Creation of a robust R&D ecosystem to drive home grown technology development; promoting collaborations between Research institutions, product developers and end users of Research; as well as provision to incentives funding of research by public and private sector entities, is another green side of the Bill that would help develop the Nigerian system.
4. In job creation drive to address unemployment, the Bill seeks to give first consideration to Nigerians with requisite skills in all public funded projects.
The Bill also provides for creation of national database of available skills amongst the Nigerian locals and requirements for approval and utilisation of expatriates will only role where there is immediate skills shortage.
5. Local Content Enforcement Bill will address capacity building to develop resilient local supply chain; Provision for targeted sector-specific capacity building programmes and requirement to close capacity gaps in education, infrastructure, facilities and vendor development on the back of projects.
6. Sustainable funding for local content is another clause in the Bill that will help promote and grow the Nigerian economy in Post COVID-19 era.
To achieve this, the Bill provides for creation of a Nigerian Content Trust Fund (NCTF), dedicated to implementing projects and programmes connected to developing local content. Application of the Fund to develop SMEs through low interest project-based financing schemes is also provided for in the Bill.
7. The enactment of the Nigerian Local Content Development and Enforcement Bill will strengthen executive-legislature synergy and oversight on local content administration in key sectors of the economy.
It will also provide necessary legislative backbone for implementation of key initiatives that will evolve from the Presidential Economic Sustainability Committee as well as other policy actions by the Executive aimed at repositioning the Nigerian economy in the post COVID-19 era.
Amongst other things, the Bill seeks to expand the scope of local content in the extant NOGICD Act, thereby putting the Nigerian economy in the hands of Nigerians, creating jobs and enhancing the value of indigenous businesses in the post Covid-19 era.
