Don't Miss


Home   >   Business   >   Industries   >   Energy   >   Local content: Nigeria loses N61trn to capital flight

Local content: Nigeria loses N61trn to capital flight

By on March 22, 2014

The Federal Government, yesterday, disclosed that the country has lost $380 billion, about N60.8 trillion, in capital flight over the years, due to failure of companies in the oil and gas sector to develop local capacity, in line with the local content initiative.

Speaking at the Nigerian Oil and Gas Conference and Exhibition in Abuja, Executive Secretary, Nigerian Content Development and Monitoring Board, NCDMB, Mr. Ernest Nwapa, noted, however, that the major challenge is not in the amount lost, but the continued lack of opportunity to develop the capacity of individual players.

He also lamented the slow pace of development of the manufacturing capacity of indigenous players, stating that if the manufacturing capacity of the companies is not developed, all the achievements recorded in the area of Local Content will fizzle out.

According to Nwapa, the current performance level of indigenous operators, in the area of engineering is 90 per cent; fabrication – 60 per cent, while manufacturing is 10 per cent.
“If the manufacturing capacity of the indigenous players is not raised, we will not get the much needed growth of Nigerian content,” he said.

He said the unfortunate situation of the Nigerian Immigration Service’s employment exercise has underpinned the need for job creation through support of indigenous companies, noting that manufacturing is key to long term job creation.

He disclosed that in 2014 and beyond, NCDMB will ensure that firms that flout its directives are sanctioned, while work stoppage fines will be applied strategically.
He maintained that the NCDMB will insist that the requirements of the law are complied with, noting that it has  given operators adequate opportunity to fully comply with the law.

He said between 2010 and 2012, the NCDMB initiated Capacity Development Intervention, CDIs,    concentrated on creating awareness on the Nigerian Content requirements and commenced change in the management processes of operators.

 

 

[Vanguard]