The Senate has said it will amend the Nigeria Oil and Gas Industry Content Development (NOGICD Act), 2010, noting that the existing law was not achieving the aims for which it was enacted, Vanguard reports.
The decision of the Senate was reached by the Ad-Hoc Committee currently investigating local content and cost variation on the $16 billion Egina Deep Sea oil project. The committee is led by Senator Solomon Olamilekan Adeola (APC, Lagos). Disclosing the need by the Senate to amend the Act, Senator Adeola declared that investigations by the lawmakers had shown loopholes in the local content law being exploited by foreign companies with some local collaborators.
He said: “From what we are discovering in this investigation, it is clear that the Local Content Act is not achieving much result, with Nigeria losing billions in expatriated hard currency and not much local skill or transfer of technology taking place.” He said the new amendment to the Act would seek to place final approval for projects and its execution under the NOGICD Act in the National Assembly to ensure strict compliance.