The Federal Government of Nigeria has directed that contracts below N5 billion will no longer be awarded to any foreign firm.
This was disclosed in a verified tweet by the Personal Assistant on New Media to the President, Bashir Ahmad. According to Mr. Ahmad, the new order is in line with the proposed Local Content Bills being considered by the senate.
READ: Nigerian Content Intervention Fund increased to US$350 million
The FG directs that contracts not above N5bn will no longer be awarded to any foreign firms, this is in line with proposed Local Content Bills being considered by the Senate, the @FMWHNIG’s Engr. Abubakar Aliyu @sadiqatfifty, states that at a public hearing organised by the NASS.
— Bashir Ahmad (@BashirAhmaad) October 22, 2020
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What you should know
Nigerian Local Content Development and Enforcement Bill 2020, is a bill that seeks to amend the Nigerian Oil and Gas Industry Content Development Act, by expanding its scope to capture changes in the industry.
READ: Fluctuations of oil price threatening Nigerian content development — NNPC
The bill proposes to:
- Create a Nigerian Content Council to be headed by the Vice-President.
- Deduct the sum of 2% from every contract awarded in Nigeria for the development of local content.
- Ensure that no expatriate is allowed to do a job in Nigeria that can be done by Nigerians and where there exists a gap, there must be modalities to bridge that gap by creating jobs for locals.
- Building capacities of local companies not only to compete in Nigeria but also abroad.
- Ensuring the patronage of made in Nigeria goods.
(READ MORE: NNPC says local operators must improve capacity to achieve low cost of oil production)
The bill went through second (2nd) reading at the House of Representatives and was subsequently referred to the Committee on Nigeria Content Development and Monitoring for further consideration.
What they are saying
Mr. Ahmad, in a verified tweet, said, “The FG directs that contracts not above N5bn will no longer be awarded to any foreign firms, this is in line with proposed Local Content Bills being considered by the Senate, Engr. Abubakar Aliyu states that at a public hearing organized by the NASS.”
