Reasons why N’Assembly must pass local content Bill
Reasons why N'Assembly must pass local content Bill
Reasons why N’Assembly must pass local content Bill
As the world prepares for measures in boosting economies after the ease of global lockdown, the Nigerian National Assembly, is once again, saddled with the responsibility of coming up with legislative piece and actions that could help rejuvenate the nation’s economy and help Nigerians overcome post-Corona virus hardship.
One swift step that must be taken by both Houses of the National Assembly, is to give serious attention to, and speedily pass the local content enforcement Bill.
The Bill which is known as, the Nigerian Local Content Development and Enforcement Bill 2020, passed second reading on the floor of the House of Representatives, on Tuesday, 19th May, 2020.
The Bill is being sponsored by the Speaker, House of Representatives, Rt. Hon. Femi Gbajabiamila; Chairman, House Committee on Nigerian Content Development and Monitoring, Rep. Legor Idagbo and 7 others.
Amongst other things, the Bill seeks to expand the scope of local content in the extant NOGICD Act, thereby putting the Nigerian economy in the hands of Nigerians, creating jobs and enhancing the value of indigenous businesses in the post Covid-19 era.
Spokesman of the House, Rep. Benjamin Kalu, while analysing the general principles of the Bill in a statement on Monday, said, the idea of local content Bill or policy was to encourage local participation, ownership and control of certain key sectors by indigenous businesses.
“This is vital to preserving Nigeria’s socioeconomic independence and enhancing the ability of indigenous businesses to exploit local opportunities, while staying globally competitive”, Kalu said.
Stressing further, the Spokesman said, “so far, the key local content legislation in Nigeria is the 10-year old Nigerian Oil and Gas Industry Content Development Act 2010 (NOGICDA), which established the Nigerian Content Development and Monitoring Board (NCDMB) but is limited to the oil sector.
“Also notable, are the President’s efforts to extend local content compliance to the public procurement practices of federal parastatals vide his Executive Orders 003 and 005.
“However, as we celebrate the Africa Day (May 25), a day commemorating Africa’s independence, liberation and socioeconomic freedom from foreign dominion and exploitation, and in the light of the current COVID-19 induced global economic position which has forced countries to look inwards for economic growth and sustainability, it has become imperative to extend local content policy beyond the Petroleum Industry to other critical sectors like, ICT, Manufacturing, Agriculture, Power, Solid Minerals, Construction, Health, etc, through comprehensive legislation”.
THE SOCIO-ECONOMIC BENEFITS OF THE BILL IN NIGERIA’S POST COVID-19 ERA:
1. The Bill, when passed and assented to, will promote local manufacturing and economic diversification with focus on ICT, Agriculture, Solid Minerals, Hydrocarbon Refining and Power.
It provides for incentives to encourage local processing of hydrocarbon resources, export of processed minerals and agricultural commodities, local manufacturing of equipment, machinery, spares, chemicals, ICT hardwares, development of softwares and others.
The Local Content Bill also provides for standardisation of locally made goods and locally sourced raw materials to make them competitive in the international market.
2. The Bill makes it mandatory for Nigerian made goods and services in all public procurements; Nigerian content philosophy as a key requirement in all public sector procurements; provides for creation of local content departments in MDAs and provides requirement for Nigerian Content Plan (NCP) on major projects (above N100m) outlining minimum Nigerian Content thresholds for materials, labour and services required on the project.
It also strengthens Nigerian content requirements in solicitation of bids and requires Nigerian content compliance certificate as a pre-condition for contract awards; while recommending the creation of Nigerian Content Committee (NCC), to develop economy-wide local content policy.
3. Creation of a robust R&D ecosystem to drive home grown technology development; promoting collaborations between Research institutions, product developers and end users of Research; as well as provision to incentives funding of research by public and private sector entities, is another green side of the Bill that would help develop the Nigerian system.
4. In job creation drive to address unemployment, the Bill seeks to give first consideration to Nigerians with requisite skills in all public funded projects.
The Bill also provides for creation of national database of available skills amongst the Nigerian locals and requirements for approval and utilisation of expatriates will only role where there is immediate skills shortage.
5. Local Content Enforcement Bill will address capacity building to develop resilient local supply chain; Provision for targeted sector-specific capacity building programmes and requirement to close capacity gaps in education, infrastructure, facilities and vendor development on the back of projects.
6. Sustainable funding for local content is another clause in the Bill that will help promote and grow the Nigerian economy in Post COVID-19 era.
To achieve this, the Bill provides for creation of a Nigerian Content Trust Fund (NCTF), dedicated to implementing projects and programmes connected to developing local content. Application of the Fund to develop SMEs through low interest project-based financing schemes is also provided for in the Bill.
7. The enactment of the Nigerian Local Content Development and Enforcement Bill will strengthen executive-legislature synergy and oversight on local content administration in key sectors of the economy.
It will also provide necessary legislative backbone for implementation of key initiatives that will evolve from the Presidential Economic Sustainability Committee as well as other policy actions by the Executive aimed at repositioning the Nigerian economy in the post COVID-19 era.
As the House of Representatives resumes plenary on Tuesday, 2nd June, 2020, it is instructive to consider further legislative actions for the speedy passage of the all-important Nigerian Local Content Development and Enforcement Bill 2020.
The Nigerian Senate should also, as a matter of urgent national importance, consider the concurrence of the Bill when passed by the lower chamber, for the immediate assent of President Muhammad Buhari, for the good of our economy and the citizenry.