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. The Nigerian Content Bill will soon be passed into law on or before December 2009 thus establshing a legal framework for this initiative.
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:
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:
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