Nigeria Tightens Local Content Rules, Rejects 186 Expatriate Positions

Overview of Expatriate Quota Approvals in Nigeria

The Nigerian government, through the Nigerian Content Development and Monitoring Board (NCDMB), has recently approved a significant number of expatriate quota applications. Out of the 1,603 applications processed, 1,417 were granted, while 186 were rejected due to non-compliance with the rules governing the oil and gas industry.

An expatriate quota is a government-issued permit that allows companies to hire foreign workers for specific roles within Nigeria. This system is designed to ensure that local workers are prioritized by setting a limit on the number of expatriates a company can employ. Typically, this limit is set at 5% of the total workforce.

To obtain an expatriate quota, companies must demonstrate that the required skills are not available locally and provide training plans to transfer these skills to Nigerian workers. The NCDMB oversees this process, ensuring that all quota requests align with the goal of increasing local participation in key industries such as oil and gas.

Employment Commitments and Legal Implications

Although the approved expatriate quotas are expected to generate 13,833 employment commitments, the NCDMB has issued a warning to companies. They must secure NCDMB approval before approaching the Federal Ministry of Interior for any further actions. Failure to follow this process could result in legal violations.

Mr. Emmanuel Paulker, Supervisor of the Planning, Research and Statistics Directorate at NCDMB, emphasized this point during the NCDMB Sensitisation Workshop for Midstream Companies and Stakeholders held in Lagos. He also mentioned that the NOGIC JQS portal had registered 406,000 individuals and 11,445 companies, including 115 operators. However, much of the midstream sector remains outside the system.

Compliance and Sanctions

The Acting Director of Monitoring and Evaluation at NCDMB, Mr. Omomehin Ajimijaye, urged operators in the midstream segment of the oil and gas industry to comply with the Nigerian Oil and Gas Industry Content Development (NOGICD) Act 2010. Non-compliance could lead to sanctions, including project withdrawal, suspension, or criminal prosecution.

Ajimijaye reiterated that obtaining Nigerian Content Equipment Certificates (NCEC) incurs zero processing fees. The NCDMB has also banned the use of middlemen in all its transactions. Additionally, expired or misapplied NCECs will automatically disqualify companies from participating in tenders.

Objectives of the Workshop

Ajimijaye outlined four objectives for the workshop: deepening understanding of the NOGICD Act, clarifying statutory reporting templates, addressing midstream-specific compliance challenges, and strengthening collaboration between the Board and industry players.

He emphasized the importance of feedback from stakeholders, stating that achieving a 70% Nigerian content target requires partnership and mutual understanding.

Training and Employment Plans

The Director of Capacity Building at NCDMB, Engr. Abayomi Bamidele, highlighted that the NOGICD Act mandates all operators and contractors to prioritize Nigerian employment and training. He noted that any project or contract valued at $1 million and above must submit an Employment and Training Plan for Board approval.