The Petroleum Technology Association of Nigeria (PETAN), Nigerian Content Development and Monitoring Board  (NCDMB), Petroleum Contractors Trade Section (PCTS), Oil Producers Trade Section (OPTS) and the Nigeria LNG Ltd have advised against increasing the percentage of the Nigerian Content Development Fund (NCDF) from the current one percent to two percent as proposed in the amendment of the Nigerian Oil and Gas Industry Content Development (NOGIDC) Act.
The NCDF is deducted from the value of contracts awarded in the oil and gas industry and was pegged at one percent by the NOGICD Act of 2010.
The organisations canvassed this position in separate presentations they made in Abuja at the two-day public hearing organised by the Joint Senate Committee and House of Representatives Committees on Nigerian Content Development and Monitoring held on October 20, 2020.
The public hearing is focused on three proposed legislations, namely ‘The Bill for An Act to Amend The Nigerian Oil and Gas Industry Content Development Act, Cap 2, 2010 and Other Matters Connected Thereto’ and  ‘The Bill for an Act to Enact The Nigerian Local Content Act for the Development, Regulation and Enforcement of The Nigerian Content in all sectors of the Nigerian Economy Except The Oil and Gas Industry Sector and for Related Matters’ and the third legislation seeks to repeal the NOGICD Act and enact Nigerian Local Content Development and Enforcement Commission Act and establish the Nigerian Local Content Development and Enforcement Commission.
In his submission,  PETAN Chairman, Mr, Nicolas Nicolas Odinuwe stated that it would be a grave mistake to repeal the NOGICD Act which had been acclaimed by several stakeholders to be very successful. He insisted that the best strategy would be to fine-tune a few areas to make it more effective.
 Executive Secretary NCDMB, Engr. Simbi Kesiye Wabote argued that the one percent NCDF deduction should be maintained “given the pressure that the global oil and gas companies are facing with cost escalations and price reductions in the industry. “With prudent management of the NCDF and the full cooperation of the operating companies, we believe Local Content shall continue to operate efficiently and grow.”
In their speeches, representatives of the leading oil industry organisations advised against the proposed increment, stressing that an amendment of the NOGICD Act should promote and protect local businesses and encourage entry of foreign capital and technology into the country to further grow the sector.
They also strongly opposed the proposed bill which sought to repeal the Nigerian Oil and Gas Industry Content Development Act 2010 and enact Nigerian Local Content Development and Enforcement Commission Act.
 Representative of the OPTS, Engr. Joseph Ofili posited that the group was totally against the Commission Bill because it would erode the gains of the past 10 years of the Nigerian Content implementation and return the industry to ground zero with regards to Local Content implementation.
In his remarks, Chairman of the Senate Committee on Local Content, Senator Teslim Folarin Teslim clarified that the Bill for an Act to amend NOGICD Act and the Bill to enact the Nigerian Local Content Act for the development, regulation and enforcement of Nigerian Content in all sectors of the Nigerian economy were sponsored by the Nigerian Content committees of both houses of the National Assembly.
He explained the that the justification for proposing a separate legislation for the other sectors of the economy was because the oil and gas industry was peculiar and its operations and governance structure of the NOGICD should not be disrupted.
Also speaking at the event, the Deputy Leader, House of Representatives, Honourable Peter Akpatason, who represented the speaker of the House of Representatives, Rt Honourable Femi Gbajabiamila, explained that the proposed bills have significant impact on the national economy. 
He noted that ten years of the Nigerian Content implementation has resulted in noteworthy achievements, listing them to include the employment of many Nigerians in the oil and gas industry, engagement of Nigerians in high-tech activities of the industry, significant reduction in capital flight and retention of spend in-country.
Read PETAN’s full position on the NOGICD Act Amendment Bill here