The Nation Newspaper

Tag: compliance

  • Companies to show compliance with sustainability principles

    Quoted companies on the Nigerian Stock Exchange (NSE) will now be required to show compliance with sustainability principles as part of efforts by the Exchange to champion sustainable capital market practices in Africa.

    Under the Sustainability Disclosure Guidelines of the NSE recently approved by the Securities Exchange Commission (SEC), companies are expected to show their compliance with Environmental, Social and Governance (ESG) principles.

    The guidelines primarily provide the value proposition for sustainability in the Nigerian context. It also articulates a step by step approach to integrating sustainability into organisations, indicators that should be considered when providing annual disclosure to the Exchange, and timelines for such disclosures.

    The guidelines will become effective on January 1, 2019 and they will be mandatory for companies listed on the premium board of the Exchange.

    Chief Executive Officer, Nigerian Stock Exchange (NSE), Mr. Oscar Onyema, said the Exchange was supporting the global agenda of green and sustainable finance, which is so critical for Africa.

    According to him, as the first Exchange to list a sovereign green bond in Africa, the issuance of the sustainability guidelines is to further enable investors ascertain their exposure to ESG risks while providing quoted companies a platform to disclose them along common themes for comparability.

    “We encourage peer exchanges on the continent to continue to enhance information disclosure in their markets as this will help build trust,” Onyema.

    Head, Corporate Communications, Nigerian Stock Exchange (NSE), Mr. Olumide Orojimi, noted that with continued global participation in the Nigerian capital market, a shared framework of ESG principles with multi-stakeholder approach and metrics is imperative.

    He outlined that the guidelines set out recommendations for good practice in 13 thematic areas under four core principles in ESG reporting adding that with the launch of the guidelines, investors can look forward to a consistent approach to ESG reporting from quoted companies on the NSE.

    “As a member of the United Nations Sustainable Stock Exchanges (SSE) initiative, and the World Federation of Exchanges (WFE), NSE is committed to providing its listed companies with guidance on sustainability reporting, and has taken steps to demonstrate its commitment through a number of pre-implementation activities,” Orojimi said.

     

  • NPDC pledges compliance with Nigerian Content guidelines

    The Nigerian Petroleum Development Company (NPDC), the exploration and production arm of the Nigerian National Petroleum Corporation (NNPC), has promised to comply with the provisions of the Nigerian and Oil and Gas Industry Content Development (NOGICD) Act and other guidelines of the Nigerian Content Development and Monitoring Board (NCDMB).

    Its Managing Director, Mr. Yusuf Matashi, made the commitment in Abuja during a meeting with the Executive Secretary of the NCDMB, Simbi Kesiye Wabote. He said the company would not be seeking waivers from the board for its projects, rather it would abide by the provisions of the Act, especially as it relates to carrying out competitive bidding and utilising Nigerian oil and gas service companies and locally manufactured goods and services.

    Matashi said the company would approach the Board to obtain Nigerian Content Plan (NCP) approval as required by the NOGICD Act for all its future projects that is in excess of one million dollars. NCP sets out work scopes that would be executed in-country and guides project execution and monitoring. He promised to direct the company’s personnel on the primacy of Nigerian Content guidelines to project execution.

    The NPDC chief also solicited the Board’s support to develop and institutionalise Nigerian Content systems and processes within the NPDC to ensure compliance. Part of the support his company would need, he noted, includes workshop or training for staff of NPDC on Nigerian Content requirements and processes.

    The Managing Director of National Engineering & Technical Company Limited (NETCO), engineering arm of NNPC, Mr. Yakubu Mustapha, stated that his subsidiary is a major beneficiary of the Nigerian Content Act. He added that NETCO could not have been able to compete with its international counterparts but for the Nigerian Content Act which has enabled it to grow and build requisite capacity.

    Wabote underscored the need for close collaboration between the Board and NPDC. He charged NPDC to be a role model for the industry in terms of Nigerian Content compliance, considering especially that the NNPC played leading roles in the development and enforcement of the Nigerian Content policy and establishment of the NCDMB.

    Top management of the board at the meeting were the Director Planning, Research & Statistics, Mr. Daziba Patrick Obah; Director Monitoring & Evaluation, Mr. Akintunde Adelana and General Manager, Projects Certification and Authorisation Division (PCAD), Paul Zuhumben and Abayomi Bamidele, Special Technical Adviser to the ES & General Manager Strategy & Special Projects.

    The NPDC chief was accompanied by the Executive Director, Asset Management, Mr. Raifu Oyewole Oyedele, while the NETCO boss was accompanied by the Manager Projects Controls, Mr. Isokariari Soibi.

  • Lagos urges compliance with procurement procedures

    The Lagos State government has urged all Directors/Heads of Finance and Accounts Departments in all the Ministries, Departments and Agencies (MDAs) of the state to sustain the impressive procurement and payment processes which ensured transparency and accountability in the use of public funds.

    The state Accountant General, Abimbola Umar, who spoke during the second quarterly technical meeting organised by the State Treasury Office (STO) for Directors/Head of Finance in Lagos, said the success story of Lagos, especially in the area of effective management of resources, has put the state in an enviable position.

    She urged them to always strive for excellence through prudent management of scarce resources.

    The General Manager, Lagos State Public Procurement Agency, Fatai Onafowote, in a lecture titled: “Effective and Sustainable Procurement System in Lagos State, Partnering for Development”, said professionals in the accounting field are to ensure good governance through transparency, inclusiveness and competitiveness, using a procurement system that supports the state’s development goals and engender public trust.

    While highlighting some of the steps involved in procuring goods and services for government, Onafowote underscored the need for all heads of MDAs to involve their Procurement Officers from planning to project implementation.

    “Finance and Accounts Officers apart from carrying the Procurement Officers along, should also ensure that necessary sign-offs are sought and consider the availability of fund for proper execution of project,’’ he said.

    He also advised the officers to confirm that the preferred contractor or supplier for the project is registered with the state government and adhere to the use of procurement standard template for making a request.

    He added that the monitoring unit of the Agency will soon commence scheduled and unscheduled visits to the sites of various on-going capital projects to certify that they conform to a contractual agreement.

     

  • LCC hails motorists’ ‘compliance’ with new toll

    THE introduction of a higher toll took off yesterday at the Lekki Expressway and Lekki-Ikoyi Link Bridge without hitch,  the Lekki Concession Company Limited (LCC) has said.

    LCC Managing Director Muhammed Hassan told reporters yesterday that there was ‘’massive compliance by motorists’’.

    The company,  on Monday,  announced an upward review in toll, with effect from yesterday.

    According to him, the increment was an economic decision done at the right time so that LCC would not continue to increase the tariff every now and then.

    Hassan said the last review was seven years ago, adding that, if LCC did not act now, it would  be doing the review  yearly.

    On the timing, the LCC boss said: “The more we wait, the more we experience new issues. In November, last year, we made an attempt to carry out the review but the governor was not happy. He asked us to make more consultations which we have done now. It was called off and despite that, motorists were already paying and complying. We sat down and started this during the Christmas but later stepped it down. We decided to tackle it once-and-for all and take care of the challenges.”

    Hassan urged motorists to embrace e-tag, stressing that its users were entitled to between 10 and 50 per cent discounts depending on their usage.

    Hailing motorists, he said: “If there is no compliance, by now, you would have seen protests. We are however, in a democratic government; there is right of choice for those who are willing to pay and those who don’t want to pay.”

    LCC Deputy General Manager,  Customer Services and Marketing, Adelola Hassan said e-tag was not elitist.

    She said: “e-tag is an electronic device that allows easy passage. It has a card that complements it. For the e-tag, we have corporate, commercial and individual’s category. It is not elitist, even the Danfo drivers use it. We need your vehicle license, proof of ownership and any valid identity card like national identity card, international passport or driver’s license to register you”.

    But some motorists and passengers  plying the Lekki-Ajah Highway expressed mixed feelings over the new fee.

    An interior decorator, Mrs Jane Alichi, appealed to the government to consider the prevailing economic situation and look for other avenues to absorb the cost.

    A civil servant, Mr Ehijimeto Modu, appealed to the government to improve the efficiency of the alternative route.

    An information communication technology (ICT) expert, Mrs Unera Markus urged the government to consider the wages of road users before  increasing the toll.

    An engineer, Gbenga Akinlolu, said any increase that would guarantee efficiency of service delivery was good.

    “The margin of the increase should not be much considering the kind of services they render. The current economic realities call for a review. The services they render on the axis are enormous such that if your vehicle breaks down the LCC personnel will assist you. They also provide security and those accompanying services come at a cost. I expected them to consult with the transporters and other stakeholders before the review,” Akinlolu said.

  • Indigenous producers pledge compliance to Content Act

    •To sign SLA with NCDMB

    Members of the Indigenous Petroleum Producers Group (IPPG) have pledged to support and comply with the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.

    To cement their commitment, the local operating companies will sign a Service Level Agreement (SLA) with the Nigerian Content Development and Monitoring Board (NCDMB), and this will guide the submission and management of statutory reports between the parties.

    The new SLA, akin to the type signed between the Board and the Nigerian Liquefied Natural Gas Company (NLNG) in May 2017, will commit members of the IPPG to complying with the Nigerian Content Act while the Board will keep to a definite response time for reviews and approvals of contracting documentations. The SLA will take into consideration the capacity of the indigenous producing companies and provide necessary concessions as may be necessary.

    These resolutions were reached at a meeting between the Executive Secretary, NCDMB, Simbi Wabote and members of the IPPG in Lagos last Wednesday.

    The independent producers also promised to partner the Board to equip the Petroleum Technology Development Fund’s Vocational Training facility in Port Harcourt, Rivers State, for the purposes of imparting key skills that are currently lacking in the industry.

    Wabote explained at the meeting that indigenous producers were products of the Nigerian Content Policy hence, they needed to work with the Board to take the implementation to the next level.

    He stressed that Nigerian Content Act was not applicable to only foreign companies, but to all players in the oil and gas industry. “Some Nigerian companies assume erroneously that being wholly indigenous makes them complaint. But local content extends to employment, procurement, training, among other things,”he said.

    The Executive Secretary further challenged the indigenous producers to partner the Board to develop Research and Development Centres of excellence in-country so that problems encountered in their operations can be resolved locally. “The international operating companies have huge research and development (R&D) facilities in their home countries. We can only set up R&D centres in Nigeria with the support of indigenous producers.”

    He also tasked the companies on the remittance of Nigerian Content Development Fund’s (NCDF) deductions. He reiterated that the Board will soon commission third-party forensic audit to track and recover due payments on the NCDF.

    Chairman of IPPG, Mr. Ademola Adeyemi-Bero, pledged the readiness of the members to comply with the provisions of the Nigerian Content Act. “We want to participate in the Nigerian Content journey and we are ready to engage with the Board to take our projects to the next level,” he said.

    He further explained that IPPG was constituted by 25 indigenous operators, including joint venture partners of the Nigerian National Petroleum Corporation (NNPC), marginal field operators and indigenous sole risk operators. According to him, “we ensure corporate governance among ourselves, help to put a respectable face to indigenous producers and offer government a credible platform to engage. We account for between 12/25 per cent of Nigeria’s crude oil production”.

  • Premium Pension rounds off compliance, ethics week  

    Premium Pension Limited has marked the 2017 Compliance and Ethics Week in line with the global practice, Executive Director  Kabir Tijjani has said.The event  took place between November 6 and 10.

    Tijjani in a statement in Lagos said the Compliance and Ethics Week was celebrated with the theme: Make the Right Choices.

    According to him, the company is keying into the global yearly event for the second time running in appreciation of its invaluable significance.

    ‘’As a leading operator in the industry, all hands must be on deck to support the culture of compliance which will not only distinguish us among our peers but also reflect on our profitability” he said.

    While flagging off the event, he noted that the company, one of the leading Pension Fund Administrator has grown to a level where ethical principles are becoming part of our culture and the sustenance of this great value is a function of the extent to which each and every staff of the company can embrace the attitude of doing things the right way and making the right choices at all times.

    He further stated that it is through demonstrable professionalism, high ethical standards and adherence to global best practice that the company has witnessed tremendous growth and won several local and international awards.

    He said: “The choices we make in life have a significant impact on the results or outcomes we get. Making a right choice today will result in having a fulfilled future tomorrow.

    The company’s Chief Compliance Officer, Funmi Femi-Obalemo, added that compliance is a culture which infers the willingness to do things right, based on the requirements of the law.

  • BDCs take BVN validation, compliance to new heights

    BDCs take BVN validation, compliance to new heights

    Compliance with the foreign exchange (forex) rules is a task every stakeholder should take seriously. The Association of Bureaux De Change Operators of Nigeria (ABCON), in collaboration with the Nigeria Interbank Settlement System (NIBSS), organised sensitisation programmes for Bureaux De Change (BDCs) on the use and deployment of Bank Verification Number (BVN) validation portal. The events, which were held across the six geo-political zones, are ABCON’s input to the Central Bank of Nigeria’s (CBN’s) policy implementation and confidence-building in BDCs’ operations. It backs ABCON’s goal of ensuring that its members operate within set rules even as it wants the CBN to help reduce rising bank charges depleting operators’ capital and profitability, writes COLLINS NWEZE.

    Bureaux de Change (BDC) operators have one priority-to  comply with rules and regula-tions guiding the foreign exchange (forex) market.

    The BDCs agreed that Bank Verification Number (BVN) remained a veritable tool for fighting fraud in the forex market. Likewise, the Central Bank of Nigeria (CBN) believed that the BVN policy implementation would enhance transparency in forex deals and sustain exchange rate stability.

    The impact has been the swift recovery of the naira from over N520/$1 in February to N361/$1 at the parallel market, a development that has continued to marvel financial pundits. But those, who understood the role played by the BDCs in achieving this milestone were not surprised.

    The Nigeria Interbank Settlement System (NIBSS) powered BVN validation portal, used by BDCs to promote transparency in forex deals, has also been helpful.

    That explained why the Association of Bureaux De Change Operators of Nigeria  (ABCON)  and the NIBSS had in the last two months, organised sensitisation programmes across the six geopolitical zones for over 3,500 BDC operators. The programmes were meant to enlighten BDCs on the usage and deployment of BVN validation portal for industrial benefits.

    ABCON President, Alhaji Aminu Gwadabe, said the world is going digital, and BDCs under his leadership must stay ahead of the competition by deploying time-tested technology to deliver effective services to their numerous customers.

    He said the NIBSS BVN validation portal helps the BDCs to ascertain the genuineness of BVNs of customers wanting to buy forex. The CBN had directed the BDCs to validate the authenticity of BVN, which clients wanting to buy forex submit to them.

    The ABCON boss said the sensitisation programme was part of its confidence-building agenda to ensure that BDCs abide by forex rules. “The programme, which  held in the six geopolitical zones – namely: Kano, Lagos, Awka and Abuja, among others, is our input to CBN’s policy implementation. It is an opportunity to take confidence-building in BDCs’ operations to greater heights. ABCON leadership has zero tolerance for its members that breach operational guidelines,” he said.

    But Gwadabe appealed to the CBN to help BDCs reduce rising bank charges associated with their transactions. “BDCs are charged N1,000 per N1 million transaction and with each operator paying as much as N67,000 for the N67 million monthly transactions. These charges are too high, and I urge the CBN to help reduce the charges, which are becoming huge burden on BDC operators,” he said.

    Findings showed that each of the 3,500 BDCs carry out transactions worth N16.8 million weekly, which comes to N67 million turnover and N67,000 maintenance fee monthly.

    He disclosed that this fee has made it difficult for many BDCs to stay profitable in the business because of the rising operating costs and including overhead. “I appeal to the CBN to address this challenge so that the market will continue to enjoy ongoing stability,” he said.

    The CBN had directed licensed BDCs to ensure that all their transactions have the BVN of the buying customers. The information must be included in the forex returns to the regulator. In the case of corporate customers, the BVN of a director of an authorised signatory of the entity must be provided to the BDC.

    Gwadabe explained that to ensure a hitch-free implementation of the directive, the CBN has continuously provided list of all licensed BDCs to the NIBSS to enable the firm make available the necessary hardware token that would be used by the BDC in accessing the NIBSS portal.

    The NIBSS has subsequently made the portal available on its website to facilitate access for the confirmation/validation of the BVN number of the BDCs’ customers.

    Gwadabe disclosed that all forex-buying customers’ BVNs must be validated by the CBN authorised forex dealer through the NIBSS portal before all transactions are consummated. He said ABCON carried out the sensitisation to ensure that BDCs effectively comply with the directive.

     

    CBN’s Regulation

    The CBN’s rule requires that a token transaction fee of N100 would be paid for each access on the portal. “The NIBSS will also provide the necessary training manual for an “easy to use” operation of the system,” the CBN said.

    The CBN also directed that any BDC that fails to provide the required information in its returns, or provide a wrong BVN would be penalised. First offenders will be required to pay a fine of N1 million while any subsequent violation of requirement may lead to the revocation of the operating license of the BDC.

     

    Benefits to BDCs

    Analysts have said BDCs’ compliance with the NIBSS’s BVN validation mandate is positive for their business and economy. It is expected that more customers, seeing the level of transparency and data integrity in the BDC’s operation, will be motivated to give them more businesses. “Even local and international investors, including Diaspora agencies are more likely to commit their funds to BDCs as the sector becomes more transparent,” Gwadabe said.

    He explained that in many advanced countries, the BDCs are direct agents of International Money Transfer Operators (IMTOs) because of the established transparency and infrastructure in those countries.

    The ABCON leader said the BVN validation portal is one of the infrastructures now available for BDCs to compete favourably and take over the retail-end of the forex market that rightly belongs to them.

    According to him, the platform is also expected to promote financial inclusion, and get more people into the financial services net. “People, who are not connected to the financial system but want forex, will have no option than to open account with commercial banks and obtain their BVNs. It is our own contribution to CBN’s financial inclusion project and determination to take financial services to the grassroots,” Gwadabe said.

     

    BVN validation on NIBSS’ portal

    NIBSS Managing Director Ade Shonubi confirmed that the portal was developed to enable BDCs comply with the CBN’s directive that BDCs customers provide their BVN before buying forex. He also agreed that such exercise brings transparency in the market and prevents multiple supply of forex to single individual.

    The BVN captures customers’ biometric data, such as fingerprints, provides unique identification number for the customers and protects their accounts from unauthorised access, identity theft and fraud.

    The CBN had ordered that customers desiring to purchase forex through all channels must provide their BVN, which shall be validated by the CBN authorised forex dealer through the NIBSS platform before the transactions are consummated.

    The regulator said any authorised forex dealer that fails to provide the required information in its returns or provides a wrong BVN would be penalised; this may include the termination of the forex dealership authorisation.

    Shonubi said NIBSS had deployed two services on the Web and phone that would make BVN verification for BDCs customers and others as easy as possible.

    Explaining the process for the exercise, he said in accessing the phone for the verification, the first step is for customers to dial *565*1#, enter the BVN code type,  date of birth and click on send. While for the Web portal, the customer needs to type: www.nibss-plc.com.ng, a space will show where to enter the BVN code, date of birth and send.

    Shonubi said customers are  charged N10 for phone transaction and N20 for the web portal which the customer would be required to pay either with credit card or internet banking.

     

     

     

     

     

     

  • Oil cut: OPEC, others attain 116% compliance

    Oil cut: OPEC, others attain 116% compliance

    The Organisation of Petroleum Exporting Countries (OPEC) and non-OPEC partners, that agreed to cut oil production to stem supply glut, attained 116 per cent compliance last month, the highest since the implementation of the agreement in January.

    The Joint  OPEC and non-OPEC Ministerial Monitoring Committee (JMMC) stated this at its last meeting.

    The committee said in the report of the Joint OPEC and non-OPEC Technical Committee (JTC) for August, that OPEC and participating non-OPEC producing countries recorded the highest conformity ever with their voluntary adjustments in production.

    This again underscored the commitment of participating countries to cooperating towards the rebalancing of the market. The JMMC expressed satisfaction with the results and steady progress towards full conformity with production adjustments. It encouraged the countries to continue on the path towards better conformity for the benefit of producers and consumers.

    The JMMC noted that while some participating countries have consistently performed beyond their voluntary production adjustments, others are yet to achieve 100 per cent conformity.

    Furthermore, the JMMC recommended that the JTC continue to build on the progress made at the JTC extraordinary session in Abu Dhabi on August 8, to support each participating country in its efforts towards achieving full conformity with the Declaration of Cooperation.

    The JMMC noted recent market developments and expressed confidence that the oil market was moving  towards the objectives of the Declaration of Cooperation. Recent data confirmed that global oil demand growth in 2017 is now better than expected, while for 2018, world oil demand is anticipated to be robust.

    Commercial oil stocks in the Organisation for Economic Cooperation and Development (OECD) fell further last month, and the difference to the latest five-year average has been reduced by 168 million barrels since the beginning of this year. However, there remains another 170 million barrels of stock overhang to be depleted. Supported by the improving forward structure in the futures market, floating storage has also been on a declining trend since June.

    The JMMC will continue to monitor other factors in the oil market and their influence on ongoing market rebalancing process. Every effort will be made to rebalance the market for the benefit of all, it said.

    At its fifth meeting, which took place in Vienna, Austria, the JMMC welcomed the participation of Iraq, Libya and Nigeria, and the reaffirmation of their commitment to working closely with other countries to ensure the success of the Declaration of Cooperation.

    The President of the OPEC Conference, Khalid A. Al-Falih, minister of Energy, Industry and Mineral Resources of the Kingdom of Saudi Arabia, participated in the meeting by telephone. He expressed his solidarity with the JMMC, reiterated the commitment of Saudi Arabia to the success of the Declaration of Cooperation, and cautioned against complacency. Moreover, he reaffirmed the necessity of additional work by under-performing participating countries to bring their conformity levels to 100 per cent.  He thanked Libya and Nigeria for their positive engagement and their ongoing coordination with the participating countries in the Declaration of Cooperation.

    The JMMC was established following OPEC’s 171st Ministerial Conference Decision of November 30, 2016, and the subsequent Declaration of Cooperation made at the joint OPEC-Non-OPEC Producing Countries’ Ministerial Meeting on December 10, 2016, at which 11 (now 10) non-OPEC oil producing countries cooperated with the 13 (now 14) OPEC member countries to accelerate the stabilisation of the oil market through voluntary adjustments in total production of 1.8 million barrels per day. The Declaration came into effect on January 1, 2017, and was for six months.  It was extended for another nine months commencing July 1.

    The next JMMC meeting is scheduled for Vienna, on November 29, 2017.

  • ‘Compliance with ECS major requirement for govt contracts’

    Evidence of compliance with the Employees Compensation Scheme (ECS) will now form part of requirements for bidding for the Federal Government contracts, the Nigeria Social Insurance Trust Fund (NSITF) has said.

    Its Managing Director, Adebayo Somefun, who made this known during a visit to the Lagos regional office of the organisation, said efforts were being made to ensure that the compliance certificate from the fund became a major requirement in government offices a across the country.

    While decrying the non-chalant attitude of employers to comply with the provision of the law establishing the Employee Compensation Scheme, he said the “Management of NSITF is working on making the NSITF Compliance Certificate compulsory for all employers who were interested in bidding for government contracts.

    “The management is working with major stakeholders to ensure that NSITF Compliance Certificate becomes a major requirement at important government offices. This would go a long way in ensuring strict compliance and thereby lessen the burden on enforcement teams.”

    According to him, most employers were taking the implementation of ECS with latitude compared to the Federal Inland Revenue Service (FIRS) due to lack of prosecution or closure of business premises.

    The NSITF does not have the power to seal up company premises, it had power to do other things that could enforce compliance and instructed the regional office to bring him up to speed the challenges inhibiting high compliance rate.

  • NCDMB, NLNG sign compliance agreement

    NCDMB, NLNG sign compliance agreement

    The Nigerian Content Development and Monitoring Board (NCDMB) and the Nigerian Liquefied Natural Gas Company (NLNG) have signed a service-level agreement (SLA) committing to compliance with the provisions of the Nigerian Content Act and timely approvals of documents.

    NCDMB Executive Secretary, Simbi Wabote and the Managing Director of NLNG, Tony Attah signed the documents on behalf of their organisations in Abuja.

    The SLA, first of its kind in the oil and gas industry, would be adopted as the template for managing documentations, contracting and expatriate quota between the Board and international and local operating companies.

    The agreement obligates NLNG to submit to the NCDMB documents like the quarterly job forecast, Nigerian Content plan, bidders list, Nigerian Content evaluation criteria and Nigerian Content technical bid, among others, while the Board has to respond on specific timelines. Should the Board fail to respond in accordance with the provisions of the SLA, NLNG can proceed with its tendering process after informing the Board in writing or email.

    The Executive Secretary acknowledged that NLNG’s operations were time sensitive, adding that the SLA would ensure that “NLNG is not exposed to violations and NCDMB is not a blocker to the business.”

    He said the SLA was a key strategy of shortening the contracting cycle, cutting the cost of projects and improving compliance with the Nigerian Content Act.

    Wabote explained that activities of the NCDMB impact on the business of the NLNG while the company’s operations also influence how the Nigerian Content Act is viewed by stakeholders.

    He also canvassed greater collaboration between the two organisations, requesting for NLNG’s support towards the development of a drydock facility in the Niger Delta region, to cater for the maintenance of big vessels, including LNG carriers.

    The Managing Director of NLNG praised the Board for the speedy development of the SLA, describing it as an innovative way of addressing the company’s concerns.

    He emphasised that NLNG was bound to comply with provisions of the Nigerian Content Act but was also pressed by the urgency required in making decisions for its business.

    Attah noted that the SLA provided an opportunity for consolidating the company’s collaboration with the Board and delivering on its mission of contributing significantly to the Nigerian economy.

    He recalled that NLNG recorded high Nigerian Content achievements in the construction of its last six ships as goods worth over $10 million were exported from Nigeria to South Korea and utilised on the ships.

    On the development of drydock facilities, Attah promised to work with the Board, adding that the company had previously constituted a consortium to identify and assess possible sites but was yet to make appreciable progress.