“…small business enterprises hold the key to lift 100 million Nigerians above poverty line” Hon. ‘Legor Idagbo, House Committee Chairman on Local Content

youth employment and opportunity for MSME in every sector of the economy remains the objective of the proposed bill.

It was mentioned that the Senate is considering having another body or agency which would have the oversight function over local content activities, rather than the NCDMB having directorates to manage these sectors. Do you foresee politics getting in the way of this noble pursuit to further explore the benefits of Nigerian Content an in an already over-regulated business environment?

While the organization structure of the Body that would be responsible for overseeing the implementation of Nigerian Content in every sector of the Economy is a critical success factor, our emphasis would be to

“develop sector-specific regulations that would replicate the successes achieved by NCDMB

What’s the plan for NCDMB regarding that period between r e p e a l i n g t h e NOGICD Act and the passing of the new bill? Do recall that the PIB has taken 2 and a half decades already.

We don’t intend to repeal the NOGICD Act. It is the extant law on local content. Hence, the NCDMB will still carry out its statutory duties and one of which includes the implementation of the Act. However, NCDMB can’t run the company that will oversee the proposed industrial parks; a PPP model is a more appropriate model.

So, the Board will still be alive during that period. NCDMB would also be expected as a key Stakeholder to provide support in the engagement process and articulation of the new proposed Legislation. Mind you, PIB is in a class of its own. Lessons learnt from the attempt of previous National Assembly have been incorporated into the process of preparing the proposed Bill by the Nigerian Content Committee of Senate and House of Representative. The need to provide additional legislative support for Executive Orders 3 and 5 of the Presidency and deliver the potential benefits from the proposed legislation cannot be over-emphasised, the potential for

and leverage on existing public procurement processes. There exists a hybrid of regulatory options that are flexible to provide for sector specific self-regulations. What is paramount is that the interests of Nigerians are perfectly protected. I envisage that all stakeholders would be able to align on a fit for purpose organization structure that would be positioned to deliver on the people’s aspiration of promoting the interest of Nigerians in all the sectors of the economy.

You alluded to the inability of government to sustain business ventures with particular reference to the planned industrial parks by NCDMB.Would you reconsider that position against the backdrop of Saudi Aramco, as well as NLNG?

Ranti Omole, Hon Idagbo Legor, Engr Simbi Wabote, Patricia Simon-Hart, Abdul-Malik Halilu, & SAN…

The corporate structure of NLNG is an example of managing government’s involvement in a business ventures and forms the basis of the preference of an incorporated Joint Venture model in the proposed PIB. Facts are sacred and the performance of government in business ventures is hardly an opinion. It is important to note that

“small business enterprises hold the key to the kind of rapid economic growth Nigeria would need to lift 100 million

Nigerians above the poverty line because small businesses makeup 97% of the economy and contribute 70% of the country’s job opportunity.

The amended Deepwater Act hasn’t settled well with the IOCs. Understanding that this perception could further slow the rate of foreign investments coming into the country, what do you suggest as a remedy in the interim or on the long term?

Allocation of resources among counterparties would always involve some form of tension, however, the scare of exit of foreign investment is further justification for the deliberate policy on Nigerian Content in every sector of the economy. The old Deep Offshore and Inland Basin Production Sharing Contract Act, 2004 denied Nigeria a lot of benefits as some deepwater oil fields that are not in high water depth were not paying royalty. Also, deepwater royalty based on increased oil price was not implemented even when oil price exceeded $20per barrel as contained in the law. These narratives were changed in the amended Act and henceforth, there is no zero royalty. Deep Offshore Act Amendment is perhaps the greatest boost to the drive to increase public revenue. The IOCs have not been left empty handed, the Act allows for other incentives.

“It is important to note that companies are allowed to recover their capital and operational costs before oil profits are shared. The companies also get 50 per cent investment tax credit or investment tax allowance on qualifying expenditure before tax is paid.

There is a balance. The amendment was long overdue. I don’t see additional burden placed on the IOCs.

What are your thoughts on the alleged duplication of functions by Ministry of Niger Delta, and the NDDC?

In my opinion, it is division of function and not duplication. The division of the functions of the Ministry of Niger Delta from NDDC is like a two edged sword. Similarity abound in every sector, in the Petroleum Sector, there is the Ministry of Petroleum Resources,