Nigerian Content

Nigerian Content is defined as the quantum of composite value added or created in the Nigerian economy through the utilisation of Nigerian human and material resources for the provision of goods and services to the petroleum industry within acceptable quality, safety and environment standards in order to stimulate the development of indigenous capabilities.

 

Despite huge investments made by the Federal Government of Nigeria in the oil and gas sub-sector of the economy, an average of $ 10 billion USD per annum, its contribution to GDP growth has been minimal. This is largely due to low Nigerian Content in the industry, evident from the over 80 per cent of work value carried out abroad. This has led to a dearth in jobs, skills development, capacity building/utilisation and lack of sustained national economic development. To address the situation, the Federal Government has set Nigerian Content targets for the oil and gas industry of 45 per cent by 2006 and 70 per cent by 2010 respectively. In addition, presidential directives have been issued with the aim of domesticating a significant portion of economic derivatives from the oil and gas industry. To deliver on these directives and targets, the Nigerian National Petroleum Corporation (NNPC) has put in place a comprehensive Nigerian Content development strategy currently being rolled out in the industry.

 

The News April 16, 2007

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