The Senate Committee on Local Content, on Tuesday, said Sahara Group has failed to comply with the NOGICD Act 2010, which requires operators to remit 1% of the value of contracts awarded in the upstream sector of the Nigerian oil and gas industry to the Nigerian Content Development Fund (NCDF).
Chairman, Senate Committee on Local Content, Senator Joel-Onowakpo Thomas, who spoke on behalf of the Committee, made the disclosure during his address at the ongoing Practical Nigerian Content (PNP) Forum at the Content Tower, Yenagoa, Bayelsa State.
He said: “We have among other things requested briefings from the board on the collection and disbursement of the Nigerian Content Development Fund (NCDF), also ensure that the International Oil Companies (IOCs) and their linkages comply with existing local content laws and regulations.”
According to him, the Sahara Group has failed to make contributions into the NCDF since 2015. He warned that the laws governing local content development in the country must be respected, as violators will be exposed, shamed and where necessary, sanctioned.
Section 104(2) of the NOGICD Act 2010 states that “the sum of one percent of every contract awarded to any operator, contractor, subcontractor, alliance partner or any other entity involved in any project, operation, activity, or transaction in the upstream sector of the Nigeria oil and gas industry shall be deducted at source and paid into the Fund.”
This deduction is managed by the Nigerian Content Development and Monitoring Board (NCDMB) to support projects that boost local content in the industry.
Senator Joel-Onowakpo said that in recent months, the Committee has received a number of complaints from both oil and non-oil sector operators regarding poor compliance with these provisions in areas of contract delivery, workforce development, local sourcing, HCD implementation, and technology transfer.
“We have also seen delays in the development of fabrication capacity, engineering capability, and local manufacturing potential.
“As a Committee, we have started a comprehensive review of these concerns. We are examining Nigerian Content Plans, waivers granted, compliance frameworks submitted by companies and agencies. Wherever there are gaps, we will engage. Wherever there is negligence, we will act. And wherever the law is being ignored, we will correct it.
“Our goal is to make sure the law is respected — by everyone — and that both Nigeria and the operators can thrive in a fair, well-regulated environment. We will ensure that all operators have the enabling environment to do their work. We will ensure that NCDMB fulfils its responsibilities. Overall, we will make sure that Nigerians benefit in terms of employment, opportunities, skills, business growth, and genuine participation in the value chain.
“This is the work we have started, and this is the work we will continue with firmness, balance, and fairness. Nigeria has entered a new phase of Local Content compliance enforcement.
“For years, the laws have been clear — the NOGICD Act, the Nigeria First Policy, and Presidential Executive Order No. 5 were enacted to ensure that Nigerians participate actively and benefit meaningfully from the wealth generated in our economy. The intention was not ambiguous. The mandate was not optional. And today, the time for half-measures is over,” he stated.
The senator further lamented that one of the most abused areas of compliance has been Human Capital Development (HCD), adding that NOGICD Act mandates that 1%–3% of the value of every oil and gas project above $1 million must be dedicated to capacity development for Nigerians.
“This provision is not decorative. It is not aspirational. It is not voluntary. This is how nations build the engineering, fabrication, welding, geological, and high-technology expertise needed for the future.
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“The operators must obey the laws and prioritize Nigerians. The NCDMB must perform its regulatory duties with integrity and consistency — and we will be checking them,” he said.
The Committee Chairman urged Nigerians and the general public to report non-compliance and violations of local content laws to the portal and via the platforms provided below:
1. www.senatechairmanlocalcontent.ng
Emails:
1. complaints@senatechairmanlocalcontent.ng
2. whistleblower@senatechairmanlocalcontent.ng
Telephone numbers:
1. 08050934767
2. 08051022462
Meanwhile, Senator Joel-Onowakpo Thomas also hinted that the Senate Committee on Local Content is collaborating with the Nigeria Labour Congress (NLC) to expose and shame operators who are abusing and undermining local content laws in the country.
“We are also collaborating with the Nigeria Labour Congress to address these abuses and shame companies who are willfully undermining and shortchanging Nigerian citizens from benefiting from the intent of all the laws and Presidential Executive Orders.
“Let me reaffirm the commitment of the President and Commander in Chief of the Armed Forces of Nigeria, President Bola Ahmed Tinubu GCFR in growing local capacity. Growing local capacity is the sure way to create employment for our teeming graduates and artisans.
“As industry operators, we cannot blame the federal government for the unemployment when we are the one aiding and abetting those who are determined to bypass the law. We all have a shared responsibility. We have to actively be seen to support this government initiative to create massive employment for our people,” he added.
The PNC Forum, a yearly event which began 14 years ago, is a premier platform for constructive dialogue among policymakers, regulators, operators, service providers and other critical stakeholders in the oil and gas industry.
