The Nigerian Government has set a minimum local content target of 75%
by 2010 for all works and contracts to be undertaken in or on behalf of
all oil & gas companies operating in the Nigerian oil & gas industry.
This target is fully supported by the oil & gas companies operating in
Nigeria. To meet this target a number of processes are now in place
including a contract evaluation and award criteria which favours bids
which meet or exceed the minimum local content target. The Nigerian
government, via the NCD (Nigerian Content Division) of the NNPC, has
issued a list of 23 categories of work which must be executed in
Nigeria.
At Fairshores we are of the view that maximizing local content is not only
politically sensible but it makes good business sense as lower composite
rates can be realized by increasing Nigerian labour and materials
resources especially where these items are readily available and the
prices are commercially attractive. Nigeria labour rates are very
competitive when compared with many other countries and the
infrastructure is being upgraded to meet the aspiration of Nigerian
context.
The objectives of local content within the Nigerian context are to:
Increase value-added content, thereby
contributing to national economic development as well as that of our
stakeholders, partners, clients, company, employees and contractors.
Transfer technology and develop local
know-how.
We are able to work with and assist foreign companies wishing to
operate in the Nigerian Oil & Gas industry increase their Nigerian
content to meet new government target via a number of suitable
arrangements including joint ventures, partnerships, sub-contracting or
other mutually suitable vehicles.
At Fairshores we focus on delivering international quality services levels
without compromising Health, Safety & Environmental standards using
processes and procedures in line with ISO 9001 and ISO 14001 standards.
We enhance Nigerian local content via the following mechanisms:
Project specific local content plan
Employing competent and qualified
local contractors to provide technical and non-technical services
and support (when required).
Investing in the development training
of Nigerian to participate in higher-level activities than hitherto.
Investing in office, logistics,
accommodation, computing systems and other business support
infrastructure, goods, and services, all of which are purchased
locally to augment other equipment procured internationally.
Setting up the local infrastructure
in co-operation with our offshore partners to meet the requirement
of the NCD directives.
If you are seeking to enter the Nigerian Oil & gas industry and need to
increase your Nigerian content or as a first timer wish to explore the
very challenging but profitable Nigerian business environment and
succeed then you should talk to us. At Fairshores we understand Nigeria
and the Nigerian oil and gas industry like no one else.
For further details of the NCD directives and Nigerian content in general
visit www.nnpcgroup.com/ncd.htm
