The Nation Newspaper

Tag: ‘Local content

  • ‘Skills development’ll drive local content in oil, gas sector’

    Investing in training facilities, Research and Development (R&D) will help enhance the capacity of indigenous operators in the oil and gas industry thereby deepening the local content initiative, the Executive Director, Lagos Deep Offshore Logistics Base (LADOL), Mr Jide Jadesimi, has said.

    He said there was the need to enhance the capacities of local businesses and operators in the nation’s oil and gas industry in order to execute major projects in the extractive industry.

    Jadesimi spoke to The Nation ahead of the “3rd Africa local Content & Sustainability Summit” scheduled to hold in Ghana in October. He said increasing local content by expanding the opportunities for indigenous enterprises and communities to participate in the extractive industry’s value chain required up-skilling national workforces to increase their competitiveness.

    The LADOL director said this could be done through partnerships, joint ventures and/or other alliances between local businesses and mining companies to enable indigenous companies broaden their knowledge of the extractive industry and promote technology and skills transfer.

    He added that a multi-sectoral approach was critical to skills development so that competencies gained can be transferred to other economic sectors.

    According to him, such approach will also help indigenous businesses access market information on opportunities in the extractive sector and build their capacity over time to effectively participate in and link with mining, oil and gas companies.

    Jadesimi stated that without the necessary capacities, indigenous oil and gas firms will continue to miss out on available opportunities.

    “Substantial benefits can be realised from close collaborations with companies, hence the importance of facilitating alliances between local and foreign businesses,” he said.

    The LADOL boss added that the participation of the private sector and civil society will also be critical to raising community awareness and building the capacity of local enterprises to take advantage of emerging opportunities in the industry.

    He further stated that investing in skills development through training is not just about driving local content, but doing business sustainably, profitably and responsibly. “It can lower supply chain costs by creating jobs and prosperity for local communities and using local suppliers, goods and services,” he added.

    While insisting that local content matters a great deal, Jadesimi said businesses must comply with a country’s local content laws to be able to operate.Secondly, investing in skills, sourcing locally and building capacity in the short-term, he said, means businesses can operate more efficiently and profitably in the long-term.

    He also said companies will strengthen their brand and protect their long-term licence to operate by contributing to the development of the host country. Jadesimi said for local content to be sustainable, a long-term, end-to-end localisation approach must be followed from exploration through to decommissioning phases in the typical oil and gas lifecycle.

    “To become more competitive to international mining firms, governments must seek to create a more investor-friendly business environment. But these actions should not override the reasonable consideration of retaining as large a proportion of resource wealth as possible in-country,” he said.

  • GOtv expands local content offering to subscribers in Jos, Kaduna

    Digital Terrestrial Television service provider, GOtv, has announced the addition of nine new local channels to its subscribers in Jos and Kaduna from today and Thursday respectively. The channels will be available to subscribers on GOtv Max and Plus packages. The channels to be added are Spice TV, MiTV, WAP TV, ITV Benin, BISCON, Liberty TV, Tiwan Tiwan, R2TV and Rave.

    Chief Executive Officer of MultiChoice Nigeria, Mr. John Ugbe, said the additional local channels to subscribers in northern Nigeria is in line with the company’s commitment to promoting Nigeria’s heritage, through making diverse cultural content available across its platforms.

    “One of our value propositions is to ensure that we have a varied range of local channels that cut across different genres for a more wholesome viewing experience for our customers. These channels offer originally produced programmes that cater to the different tastes and preferences of our customers. We are also excited to offer these channels as part of our efforts in enabling Nigeria achieve a speedy digital switch over,” he said.

    Ugbe also stated that no digital terrestrial television operator in Nigeria has shown more commitment and support for local content made in Africa for Africans than GOtv.

    GOtv currently has over 20 local channels across different genres, including news, movies and general entertainment on its Max package.

    With over 100 hours of new programming monthly, showcasing the latest trends, major international fashion shows, designer events and professional highlights of the fashion industry, Spice TV (channel 10) offers the most comprehensive and fastest review of fashion and lifestyle shows.

    MiTV (channel 94) broadcasts an array of entertainment programmes, news, family, business, music, sports, education, health and development issues from across the country, while WAP TV (channel 102) is a top-quality family entertainment from the stable of Wale Adenuga Productions of the SuperStory fame and other esteemed TV content producers across Nigeria.

    ITV Benin (channel 107) and BISCON TV (channel 108) are local television channels that showcase sports, business, politics, lifestyle, culture, arts and general entertainment programmes.

    Liberty TV (channel 110), a Kaduna-based television station, delivers a unique mix of English and Hausa content, while Tiwan Tiwan (channel 111) is a Yoruba language music and lifestyle channel.  R2TV (channel 112), a 24-hour entertainment channel broadcasting in English language, feature originally produced and licensed music, fashion, theatre, dance, drama, movies, talk shows, cooking shows, docuseries and reality shows.

    Youth-oriented RAVE (channel 113) is a unique blend of content aimed at harnessing the energy and talent of the younger generation.

     

  • NLNG risks N1b fine for local content infringement

    The Nigeria Liquefied Natural Gas Limited (NLNG) may incur a fine of about N1 billion for failure to comply with the Nigerian Local Content Policy.

    A Niger Delta- based company, Macobarb International Ltd, while disclosing disclosed this on Tuesday, alleging the NLNG had maliciously and fraudulently terminated its contract.

    Macobarb’s Managing Director, Mr. Ogboru Shedrack, claimed the NLNG refused to follow through the contractual agreement on a security related project.

    The project, Ogboru revealed was awarded in appreciation of contractor’s competence.

    He noted the gas company had shown no interest in its (Macobarb’s) efforts to amicably settle the misunderstandings, despite its (NLNG’s) persistent payments failures.

    He also emphasised the NLNG’s resolve on taking up the matter in a law court is only a way to kill time, considering Nigeria’s judiciary system.

    READ ALSO: NLNG debunks owner’s claims over ship fire

    Ogboru further described the development as part of efforts to thwart the President Muhammadu Buhari-led government’s fight against corruption.

    “It’s a disservice to the Federal Government efforts at fighting corruption when these elements portray Nigerian Court as dumping ground to buy time by offending parties or a place where justice is for sale to highest bidder, as NLNG who violates contract they crafted, boastfully ask abused contractor to go to court. This indeed, is a disservice to Nigeria,” Ogboru stressed.

    Noting that these actions were carried out without the knowledge of some personalities in the company, he claimed that few persons, in connivance with others in the NLNG legal/litigation departments, are bent on putting Nigerian contractors out of business.

    Expressing optimism that justice will be served, the MD said the company is ready to go to court.

    Among demands Macobarb International Limited will be making are an order of Court directing Nigeria LNG Ltd to pay to Macobarb Int’l Ltd “the sum of NGN957,676, 562.50 being the standing-by costs”, a declaration that the letter of termination of contract dated 27 November, 2015, is “ineffectual and otiose,” as well as, the payment of N200 million for damages owing to the breach and unlawful end of contract.

  • Local Content: Govt refuses expatriate engineers visas

    THE Federal Government has  stopped the issuance of visas to foreigners seeking to take up jobs in the country.

    President Muhammadu Buhari made this known at the 27th Engineering Assembly of the Council for the Regulation of Engineering in Nigeria (COREN), held in Abuja.

    The President explained that the visa restriction to foreign engineers, enforced by the Ministry of Interior, was in compliance with Executive Order 5 signed by him.

    He said the decision would free up more jobs for Nigerians and improve local content.

    Besides, he said he had approved two key regulations for the engineering/construction sector. They include the Regulation on Licencing of Engineering Firms and Regulation on Construction Industry.

    Buhari, represented by the Minister of Water Resources, Suleiman Adamu, said the government was serious about the Order and would ensure that it was strictly adhered to.

    Buhari said: “I recently signed the Executive Order 5, which states that procuring authorities shall give preference to Nigerian companies and firms in the award of contracts, in line with the Public Procurement Act 2007.

    “The implementation of this order has started and as expected some of its attendant benefits including the promotion of science, technology and innovation in several centres of the economy are beginning to manifest.

    “Directly connected to these benefits is the fact that the Ministry of Interior has now restricted issuing visas to foreigners seeking to take up engineering roles in the country. Overall, the proclamation of Executive Order 5, meant to improve local content and free up more jobs to Nigerians and give them increased access to procurement opportunities, is achieving its intended purpose,” Buhari said.

    However, the President stated that absence of up to date engineering curriculum in tertiary institutions in Nigeria to reflect the current global trend in engineering had drastically reduced the competitiveness of Nigerian engineers.

    “There is a disturbing gap between engineers trained in Nigeria and those trained abroad. Hence the need for universities to churn out quality and well trained professionals,” he said.

    On the regulations,  COREN President, Kashim Ali, said they were approved by the Minister of Power, Works and Housing, Babatunde Fashola, and would be implemented by the Council.

    “Let me at acknowledge the efforts of the Minister of Power, Works and Housing, Babatunde Fashola, for the approval of two vital regulations recently. These are the Regulation on Licencing of Engineering Firms and the Regulation on the Construction Industry,” he said

    Ali stated that the regulation on licencing provides for the licencing of various companies, which include consulting engineering firms, engineering contracting firms, engineering manufacturing and production companies.

    Others include companies that are into engineering service provision, vendoring of engineering machines, plants and materials; and fabrication/repair and maintenance firms.

  • Senate backs amendment to Local Content Act

    The Senate Committee on Local Content has said there is a need to amend the Nigerian Oil and Gas Industry Content Development (NOGICD) Act to clarify some vague and ambiguous expressions, revisit the waiver provisions and rephrase the section on penalty for effectiveness. The committee also expressed the need to undertake a holistic review of the Act to cover other sectors of the economy to meet current realities.

    There is also the need, according to the committee, to resuscitate technical and vocational education as a vector for human capacity development. Science, engineering and technology curricula in the universities and other tertiary institutions, the committee said, need to be reformed and reorganised to meet requirements of the oil and gas industry.

    These were the recommendations at the end of a three-day capacity building workshop organised for the Committee in Accra, Ghana.

    After several insightful presentations on the NCDMB’s mandate, its operation, the regulatory framework in the oil industry, the journey so far and the challenges of enforcing compliance, all members of the committee (eight senators) in attendance lauded the NCDMB for the significant milestones recorded, despite very many drawbacks.

    It also praised the Board for its strategic implementation of the NOGICD Act and the steady growth in local capacities.

    Its Chairman, Senator Solomon Adeola, said from all that he heard and saw, the Board was fulfilling the purpose for which it was established.

    Senate Minority Leader and Vice Chairman of the Committee Senator Godswill Akpabio and others corroborated Adeola and promised to support the Board to ensure that Nigerians derived more benefits from the oil and gas industry.

    Senate Deputy Minority Leader Senator Abiodun Olujumi underlined that the participation of two principal officers of the Senate and six others clearly showed the importance the Upper Chamber attached to  local content in Nigeria.

    In his opening address, Adeola reminded members of the purpose for creating the Committee on Local Content, which include to ensure the use of local manpower by companies operating in Nigeria; design policies that will engender the patronage of locally-made goods and services; to oversight NCDMB’s work and identify the gaps in the NOGICD Act with a view to amending it to reflect current realities.

    He noted that the workshop was necessary to develop legislators’ understanding of NCDMB’s mandate, the journey so far, what has been achieved, the challenges and further actions required.

    The NCDMB Executive Secretary, SimbiWabote, who spoke on the topic: “Structure and Operation of the Nigerian Content Development and Monitoring Board”, reaffirmed the Board’s determination to fulfill its mission “to be the catalyst for the industrialisation of Nigerian oil and gas and its linkage sectors”. He acknowledged the senators’ encouraging remarks, noting that their commendations and positive feedback will act as fresh tonic to the Board in the pursuit of its strategic objective to increase Nigerian Content performance to 70 per cent in the next 10years.

    The workshop had many papers presentations from a cross section of professionals. The papers were followed with panel discussions. There were extensive question and answer sessions with the senators unanimously agreeing on the need to amend the NOGICD Act.

  • Firm lifts local content in maritime, energy

    An indigenous logistics firm, Fortune Global Shipping and Logistics Limited, has unveiled plans to showcase its strength in the global market.

    Its Managing Director and Chief Executive Officer, Mr Eric Opah, said the company had taken advantage of local content development policy to deliver logistics services and expand its coverage to the oil and gas sector.

    He decried the failure of logistics firms to expand to the global market, urging the operators to brace to fly the Nigerian flag higher in the international market.

    Opah said his company had taken the bull by the horn by establishing a branch in Houston, United States, and in Ghana.

    “Today, we are expanding to other countries. We have discovered that Nigerian brands do not usually extend to global markets. Most logistics companies only rely on what they can do within Nigeria. They don’t get to the helms of affairs internationally where decisions are being made.

    “Foreign multinationals are here in Nigeria, but we don’t have our own brand in that market. So, Fortune Global has taken the bull by the horn, and expanded its operations to Houston, United States. We are also in Ghana, as part of our vision to look out to strategic places to support in energy logistics,” he said.

    Opah said the firm also played a critical role in building the Egina Floating Production and Offloading (FPSO) vessels, which sailed into Nigeria some weeks ago for further integration.

    According to him, Fortune Global Shipping handled the clearance of the FPSO and the export of the pressure tank from Lagos to Goje in South Korea.

    The managing director noted that Fortune Global Shipping has capacity to handle over 2000 TEUs of cargo volume and over one million tonnes of airfreights yearly.

    He said the company had recorded some milestones in the Forcados Yokri and Shell’s FOID, among other projects in the oil, gas and maritime sectors.

    Opah noted that the industry has not grown due to factors, such as implementation of regulations and financial support.

  • Boosting local content

    Boosting local content

    •Although we’ve made some progress, there is still a lot to be done

    MORE than half a century of oil exploration in the country, the scale of the annual pillage brought on by the systematic underdevelopment of indigenous capacity by international oil companies (IOCs) continues to be mind-boggling. According to the executive secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Simbi Wabote, out of $20 billion spent annually in Nigeria’s oil and gas by IOCs, over $15 billion continues to be repatriated through offshore contracts in fabrication, engineering and procurement.

    In over a 50-year period, the NCDMB chief estimates the loss at over $380 billion in addition to two million job opportunities. His words: “The narrative then was that nothing can be done in-country. Plants and modules fully fabricated offshore together with the technical and even non-technical manpower were imported into the country without any structure in place to achieve knowledge transfer. The level of Nigerian content was far less than five per cent,” he said.

    Seven years since the Nigerian Oil and Gas Industry Content Development (NOGICD) Act was passed into law, the question bears asking – has anything changed?

    The NCDMB boss thinks a lot has changed. He cites his agency’s repatriation of $10 billion through clawing back of $5 billion out of the $20 billion spent annually – although he claimed that his target was to raise the amount to $10 billion; the existence in-country of five pipe coating yards and two pipe mills, active dry docking facilities in Port Harcourt, Onne and Lagos, over 35,000 jobs created on the back of implementation of the Act, in addition to the over 7,000 enrolled on NOGIC Joint Qualification System (JQS), for job placement, among others, as evidence of boost in indigenous participation in the nation’s oil and gas sector.

    Undeniable as these developments are, they merely underlie the long road yet to cover in the country’s march to a substantially indigenised oil and gas sector. NOGICD is undoubtedly an important pillar –in fact the most critical element in the quest to realise the local content goals in the oil and gas industry. We must admit that the agency has done quite a lot in terms of its strict implementation of the law as well as setting out the roadmap for getting things moving in the right direction – seven years on.

    However, its existence, we must equally point out, is certainly not nearly sufficient in a clime where the necessary ancillary institutions designed to train the class of indigenous manpower in simple engineering skills such as welding and other steel fabrication are virtually non-existent. We say this because even the few technical and vocational institutions in the country continue to exist only in name as they are too poorly funded to deliver on expected outcomes with their products all too often found to be unsuitable for the industry. We see evidence of this in the embarrassing skills-gap which has remained not just the bane of the oil and gas industry but the nation’s industrial scene as a whole.

    Is it not shocking, for instance, to know that a big indigenous player like Dangote Industries currently engages foreigners for high-tech welding jobs in its refinery and petrochemical complex essentially because local skills are largely lacking?

    We see two legs to the challenge: first, is the absence of the skills pool. Second are the lax regulations which allow the IOCs to carry on without consideration for the need to boost the local skills pool.

    Whereas the latter – relatively easier to solve – is the job of the NCDMB, the former, clearly inter-agency, requires careful planning and investment in education and on-the-job training.  It starts with getting the country back to the drawing board to restore not just the dignity of the artisan class but the integrity of the old trade certification system which seeks to match qualification with real competence.

    With NCDMB actively collaborating with relevant stakeholders on targeted investment, it shouldn’t take too long to boost the skills pool while making it competitive and world-class at the same time.

  • NASS, stakeholders collaborate on extending Local Content to construction, power sectors

    Members of the Federal House of Representatives have begun working with stakeholders in Power, Construction and Information Communication Technology sectors to extend the Nigerian Content Act to the three sectors of the economy.

    The collaboration was firmed up at the recent workshop organised by the Nigerian Content Development and Monitoring Board (NCDMB) for members of the House of Representatives Committee on Local Content, in Port Harcourt, Rivers State.

    The consensus at the event was that extending the Act to those key sectors would replicate the achievements recorded in the oil and gas industry through the implementation of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.

    In his presentation on Opera-tionalising Local Content in the Construction Sector, Chief Executive Officer, Megastar Construction Company, Arch Harcourt Adukeh stated that the construction industry could be a key driver of the Federal Government’s economic diversification programme when the prevailing dominance of the industry by international companies is reversed.

    Adukeh underscored the need to encourage indigenous participation in the construction sector, adding that the industry was a key enabler of ancillary services like financial services, education, retail, real estate and hospitality.

    Speaking on Local Content in the power sector, Commissioner, Engineering, Performance & Monitoring, Nigerian Electricity Regulatory Commission (NERC), Prof. Frank Okafor, stressed that”no country in the world had grown its power network through the importation of all components and devices.’’He canvassed a legislation that would promote deliberate utilisation of local human and material resources, goods and services in the power sector.

    Chairman, House of Representatives Committee on Local Content, Hon. Emmanuel Ekon in his address, highlighted some of the achievements recorded in the oil and gas industry through the imple-mentation of the Nigerian Content Act.

  • Nestle MD: BIP has built our capacity, improved local content

    The Managing Director, Nestle Nig Plc, Mr. Mauricio Alarcon, has said his company’s Backward Integration Policy (BIP) and the use of more familiar and common ingredients has not only improved the nutritional profile of their products, but also boosted the  economy.

    At the launch of the company’s new variant of seasoning, Maggi Naija Pot, in Sagamu, Ogun State, Alarcon said the seasoning helps families cook better-tasting wholesome southern dishes with less effort while delivering the delicious ‘bottom of the pot taste.’

    He said with over 4,000 farmers, the company uses 80 per cent of locally-sourced raw materials, which has helped its factory expansion.

    Alarcon said: “Most consumers want minimal processes, but desire adequate nutritional needs from any purchased products. With that in mind we fortified our Maggi Naija pot with iodine and other essential nutrients.

    “We have further trained over 1,600 farmers in local technology using soya beans with over 7,000 local maggi traders. In doing this, we have not only increased our capacity, but is also creating wealth.”

    The Category Manager (Culinary), Mr. Nordine Meguini, said the company has brought out innovative solutions to help women cook appetising food for their families.

    On the composition, he said it has a component of stock fish, crayfish and smoked fish to enhance the taste and aroma of Nigerian southern dishes.

    On the unique selling features of the new seasoning, Meguini said: “The maggi Naija Pot has superior taste and aroma, a source of iodine, saves time, money and effort in purchasing different ingredients.

    “The new seasoning makes it possible for people with low budget to enjoy quality mouth-watering food appeal in a unique blend of recognisable local ingredients developed to enhance the taste and aroma of Nigerian southern cuisine giving them that authentic bottom pot taste.”

    He said as a company, Nestle’s driving force is to improve the nutritional profile of their products and work on salt and sodium reduction and the fortification of its products with iron in order to   reduce the risk of under nutrition and contribute to address micronutrient deficiencies.

    The category manager assured that the company will continue using more familiar and common ingredients to create competitive products that are not only healthy but also friendly to customers’ budget.A

  • Driving local content through collaboration

    Driving local content through collaboration

    The success stories of the enactment of the Local Content Law in the oil and gas industry cannot only be seen in the increased local participation of indigenous players in the upstream, midstream and downstream subsectors of the industry; it is also in the reduction of capital flight. Nigerian carriers say local content in the Information Communication Technology (ICT) sector could be acheived through collaboration, LUCAS AJANAKU reports.

    The strategic importance of local content in the information communications technology (ICT) sector and the opportunities inherent in the pursuit of Local Content in Nigeria appear to be limitless.

    ICT is crosscutting and it is an enabler for growth and development and will address the science and technology deficit noticeable in the economy as well as provide maximum benefit to the citizenry.

    The Association of Telecoms Companies of Nigeria (ATCON) said the much-expected growth in the ICT sector can only be realised through closer international cooperation and strategic collaboration with a county, such as India that has demonstrated its love for ICT and has recorded a great feat in that regard.

    Its President, Olusola Teniola, who presented a paper at a forum in Lagos, identified the 10 key strategies contained in the Geneva Action Plan, which Africa’s Heads of States and Government agreed to and signed at the World Summit on the Information Society (WSIS) in December 2013 to include:  connect villages with ICTs and community access points; connect universities, colleges, secondary schools, and primary school with ICTs; connect scientific and research centres with ICTs; connect public libraries, cultural centres, museum, post office and archives with ICTs; connect health centres and hospital with ICTs; and connect all local government departments and establish websites and email addresses.

    Others are adapt all primary and secondary school curricula to meet the challenges of the information society taking into account national circumstance; ensure that all of the world’s population has access to television and radio services; ensure that more than half the world’s inhabitants have access to ICTs within their reach; and encourage the development of content and to put in place technical condition in order to facilitate the presence and use of internet.

    It was also agreed that nations would operate within their economic strengths as they attend to these action plans aimed at bringing about a global information society, he added.

    He said it is a fact as evidenced by development from other countries that ICT as a sector can contribute immensely to the national GDP of a country and that ICT as an enabler, can result in improved market competitiveness of a nation’s products and services. ICT can impact positively on governance and other sectors of an economy and in turn ICT can effectively assist international economic integration, improve living standards and narrow the digital divide.

    The digital divide can be narrowed and poverty reduction can be addressed through effective and focused utilisation of ICTs in key sectors such as education, industry and agriculture, ATCON said.

    He said the adoption of ICT requires a business environment that encourages open competition, trust and security, interoperability, standardisation and financial resources for development.

    This requires the urgent implementation of sustainable measures to improve access to the internet and telecoms infrastructure and increase ICT literacy as well as development of local internet based content.

    Africa countries like most developing countries still depend on content developed and managed in the developed world and as a result substantial costs are incurred while trying to access this content.

    Efforts should be directed to make ICT content available in local languages if they are to be demystified, adopted and utilised by the local user.

    ATCON said ICT’s goals in Nigeria should be to establish an environment that encourages networking of services and applications; promoting programmes for goods and services; promoting internet access to exchanges and access to digital content; establishing e-government; promoting e-education and online service; strengthen network security; building and develop an e-society and our ICT human capacity.

    The benefits of liberalising the telecom and ICT sector will not accrue to Nigeria’s teeming population until necessary actions are taken by the government at all levels through strategic collaboration with a country that has already shown a science and technology development and achievement in their own country.

     

    Structure

     

    It is obvious that the structure of Nigeria’s telecoms and ICT sector is not really beneficial to Nigeria as a country in terms of foreign exchange (forex) earnings because most of the inputs in the sector are imported from the developed countries and very little value-add exported.

    If the Federal Government wants to pursue Nigerian Local Content development vigorously as a nation with the intention of increasing its impact on revenue, it must devise a means of producing some of those inputs locally and creating more value add and innovation on the remaining that we cannot manufacture locally.

    The liberalisation of the sector has attracted circa $68billion or more of investments to the country to date. The Office of the Nigeria Local Content (ONC) under National Information Technology Development Agency (NITDA) still needs to create the opportunities for Nigeria’s ICT to develop solutions tailored to the country’s citizens’ needs and then develop the local skills to monetise the youth talent that is latent in producing value-added ICT products and services that can be exported to other parts of Africa and the rest of the world.

    The ICT industry is further challenged to reduce or eradicate the continuous unemployment of the Nigerian youth (both skilled and unskilled) as a matter of utmost urgency and there is need to work out a collaborative agreement with the aim of transferring some of India’s technical know-how to Nigerians and we pray that all relevant government agencies in Nigeria will support this initiative as it would certainly accelerate as well as give a boost to our local productive capacity.

     

    Collaboration

    Some of the resultant effects of collaborating with India to foster Nigerian local content include:

    • Create jobs

    This strategic collaboration can reduce the number of Nigerians who are unemployed as this would make them to have the required and needed knowledge to be gainfully employed in the telecom and ICT sector.

    • Dependence on expatriate

    The strategic collaboration with India would give Nigerians the opportunity to take part in dispensing critical skills and knowledge over the next decades and stop depending on offshore expertise to run the economy.

    • Lower cost

    Effective pursuance of local content would ultimately result in reduction in the cost of production because there would be less dependency on international currencies as the majority of services rendered would be in local currency.

    • Grow ICT sector

    The success of Local Content drive in the telecom and ICT in Nigeria would accelerate the progress of the sector.

     

    Way forward

    • Comprehensive plan

    ATCON noted that since the inauguration of the Office of the Nigeria Local Content (ONC), there has been very little or no noticeable activity to drive the guidelines that were published back in 2013. ATCON would like NCC and ONC to come up with concrete short and long-term implementable plans in partnership with India.

    • ICT Parks

    The Federal Government should encourage India to pool managerial and technical resources together for the establishment of an ICT Park in Nigeria. The ICT Park would be given the mandate to encourage the production of some ICT inputs such as switches, router, and mobile phone repairs/assembly with some of ATCON members that are already active in this space

    • Refocus educational policies

    The number of people who want to study science related courses are small (and in most cases reducing) in relation to students who want to study commercial or social science related courses. The trend can never solve the nation’s challenges, therefore, there is need to begin to redirect the focus of students on the need to study science related courses. The Federal Government should make studying of science courses interesting by providing conducive learning environment and state of art laboratory equipment for students with a view to encouraging local content policy.

    • Increase ICT budget

    The Federal Government should begin to focus more on other alternative means of generating income and focus should be on increasing government spending and budget allocation to funding the ICT sector for the purpose of making its products and services exportable, thereby allowing it to contribute to our foreign earnings.

    • Appropriate policies

    In order for the ICT sector to supplement or replace the oil and gas sector, strong policy frameworks which favour the sector must be put in place. It should be emphasised that the petroleum industry which used to be the cash cow for our nation (from a foreign exchange earning perspective) is not doing so well right now and this is a global issue.

    Already several countries in more advanced economies have declared that from 2030, use of hydrocarbons to run their vehicles will be significantly reduced or stopped. The direct implication of this is that the country may not be able to finance the budget without resulting to further borrowing.

    ICT can as a matter of fact serve as the new cash cow for the country provided the right polices are put in place.