NCDMB can prosecute local content violators without criminal trials - Wabote

Tue, Jul 5, 2022
By editor
5 MIN READ

Oil & Gas

By Anthony Isibor.

SIMBI Wabote, Executive Secretary, Nigeria Content Development and Monitoring Board, NCDMB, says that the provisions in the Nigeria oil and gas industry enforcement and compliance 2021, under regulation number seven of the 7 ministerial Regulations provided for direct sanction of breach without applying section 68 of the Act that would have required a criminal trial.

Speaking at opening of the 2022 Nigeria Oil and Gas conference in Abuja on Monday, July 4, 2022, Wabote explained that this was following the 7 ministerial regulations and how it can be utilized to strengthen the practice of the Nigeria content, and the implementation of the section 68 of the Nigeria Oil and Gas Industry Content Developmen, NOGICD Act under 7 ministerial regulations, which now allows the board to prosecute violators of the local content rule.

Delivering his address, which has the theme, “Utilizing the 7 ministerial regulations in strengthening the Nigeria oil sector”, Wabote expressed his optimism that Nigerian indigenous operators will continue to play prominent roles in the Nigerian oil and gas industry by taking advantage of the various emerging opportunities in the country and beyond.

According to him, the number seven of the 7 ministerial regulations sought to provide a framework for monitoring the implementation of the prescribed minimum standards for training in the oil and gas industry and achieving outputs regarding the skills, experience and exposure of personnel in the oil and gas industry, as well as strengthen the implementation of the Nigerian content.

“This regulation addresses failure to submit Nigeria content plan, failure to update certificate of authorization, failure to give first consideration and compliance with minimum Nigeria content, expatriate quota violations, failure to submit mandatory information and document, failure to make remittance to the board on any contracts awarded, failure to engage the Nigerian labour practitioners and firms, failure to retain the services of a Nigerian financial institution, operators liability, liability of directors and officers of the company and liabilities of third party and several others.

“Section 40 of the NOGICD Act empowers the minister to make regulations that will establish the minimum standards in facilities, personnel, and technology training in the oil and gas industry.

“Let me at this juncture appreciate the support of the minister of state for petroleum resources, Timipre Sylva, for the approval of the ‘7 Ministerial Regulations’ to provide legal backing to the various aspects of the Nigerian content practice not fully detailed in the NOGICD act 2010. 

“I must also commend the outstanding support provided by the federal Minister of Justice, and the office of the Attorney General of the Federation for all the reviews and input, and producing the official gazette of the ministerial regulations.” he added.

Other parts of the outline of the 7 ministerial regulations include:

Regulation number 1:

For training in the Nigerian oil and gas industry 2021: This regulation provides for the minimum standards, facility, personnel and technology for trading in the oil and gas industry, and the modalities for involving operators and service providers and partners in training and development.

It made reference to the HCD guidelines, the training plan, minimum standards of training providers, minimum qualifications for training candidates, verification of training programmes, certifications, responsibility of operators, and applicable sanctions for those in breach of these regulations.

Regulation number 2:

For further growth of indigenous capacity 2021: This regulation set out target to ensure full utilization and steady growth of indigenous companies engaged in exploration, data processing, reservoir studies and other facilities. It reinforces the principle of first consideration in Nigerian made goods and services.

This regulation also detailed compliance waiver management and the development of capacity development initiative as a tool of the growth of indigenous capacity.

Regulation number 3:

For registration of oil and gas professionals and Nigerian professional bodies 2021: This regulation stipulates that the requirement to any operator or company, or professional employee, including expatriates engaged in any professional service within the industry to register with professional bodies as it is obtained in various climes and countries of the world.

 Regulation number 4:

For the establishment of operations in Nigeria 2021: This regulation provides for the requirement of an operator to invest in, or set up facility or other operation within Nigeria for the purpose of carrying out services otherwise imported into Nigeria.

This regulation meant to fully involve the operators in the eradication, importation of goods by jointly developing capacity development initiatives to identify gaps.

It also stipulates the procedure for sourcing tax and other fiscal incentives for operators.

Regulation number 5:

For Nigeria oil and gas industry technology transfer 2021: This regulation sets the target to promote the development of technology in the Nigerian oil and gas industry through the transfer of technology to Nigeria, and to establish standards, guidelines, methods for technology transfer.

The scope of technology transfer covers the idea technology transfer, information based technology transfer, and intangible technology transfer.

Regulation number 6:

For Nigeria oil and gas research and development 2021: This regulation provides the requirement and the target in growth and research and development for the oil and gas industry. This regulation stipulates the powers of the board to regulate research, supervise research centres of excellence, protection of intellectual property, partnership for research and development implementation for research funds, and funding of research and development in Nigeria.

KN

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