AN OVERVIEW OF THE LEGAL FRAMEWORK OF THE LOCAL CONTENT ACT 2010: OBJECTIVES AND SCOPE

Abstract

This paper provided an overview of the legal framework of the Nigerian Oil and Gas Industry Content Development Act (Local Content Act), 2010, adopting a doctrinal methodology. The research examined the objectives, scope, and key provisions of the Act, with a focus on its implications for the oil and gas industry in Nigeria. The paper revealed that the Local Content Act, 2010 aims to promote indigenous participation in the oil and gas industry, increase Nigerian content in goods and services, and develop local capacity. Furthermore, the paper found out that the Act establishes the Nigerian Content Development and Monitoring Board (NCDMB) to regulate and monitor compliance with local content provisions. Also, the Act sets out minimum Nigerian content requirements for goods and services in the oil and gas industry. The Act provides for sanctions and penalties for non-compliance with local content provisions. Based on the findings, this paper recommended that there should be Effective implementation of the Act: The NCDMB and other regulatory bodies should ensure effective implementation of the Act to promote indigenous participation and increase Nigerian content. Also, indigenous companies should receive training and support to enhance their capacity to participate in the oil and gas industry. The Act should be reviewed and amended to address any challenges or gaps in its implementation. In conclusion, this paper demonstrated the significance of the Local Content Act, 2010 in promoting indigenous participation and increasing Nigerian content in the oil and gas industry. The effective implementation of the Act is critical to achieving its objectives and promoting economic development in Nigeria. By addressing the challenges identified in this study, Nigeria can strengthen its local content framework and achieve its economic development goals.