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Implement Local Content Act – Firm advises FG

By on July 9, 2014

To ensure that indigenous firms are given fair opportunities to compete with their foreign counterparts in executing government projects, SIAO, an accounting and auditing firm, has urged the Federal Government to ensure the implementation of the Local Content Act, 2010.

The company emphasised the need to give first consideration to Nigerian service providers as stipulated by the Act, adding that the purpose of the law was to develop local skills, facilitate technology transfer, ensure optimum use of local manpower and indigenous manufacturing in the oil and gas sector.

The firm alleged that some registered foreign accounting companies were predominantly servicing banks and the Ministries, Departments and Agencies of the government as well as multinational companies.

The Chairman, SIAO, Mr. Robert Ade-Odiachi, said all companies formed in Nigeria should be allowed to partake in contracts either for the supply of goods or for the provision of services as spelt out in the schedule to the Act.

He said, “This law has been in operation since 2010 and we have seen it build a lot of indigenous Nigerian companies in the oil industry. And even the banks are enjoying the provisions of the law as it stipulates that all foreign inflows into that industry must go into Nigeria banks, whether or not they originated from there.

“As auditors, we are being given a fair opportunity when we are asked to compete with the likes of KPMG, Pricewaterhouse Coopers, Deloitte, and Ernst and Young in a fair environment. That they are registered in Nigeria gives them the right do business in Nigeria, but they are not Nigerian companies; and because Nigerians are working there does not make them Nigerian companies.

“What we are saying is that this Act must be enforced because it has a simple interpretation and it is clear. We have the Nigerian Local Content Act Implementation Board, which is statutorily mandated to give effect to the Act. They have been doing very well in other areas but to date, they have not brought out any quality enforcement in respect to the financial services sector,” the chairman said.

The Managing Partner, SIAO, Mr. Itua Ighodalo, said that lack of enforcement of the law was bound to make local firms dormant, while some would die a natural death as it had been happening for years.

 

 

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