The Nigerian government, represented by the Nigerian Content Development and Monitoring Board (NCDMB), recently announced that it has sanctioned 1,417 out of the 1,603 expatriate quota applications submitted for review.
186 expatriate quota requests were turned down for failing to meet the established regulations governing the oil and gas industry in the country.
An expatriate quota serves as a government-issued authorization permitting companies to employ foreign workers for designated positions in Nigeria.
In Nigeria, there is typically a cap on the number of expatriates that firms can hire, which is usually limited to 5% of their total workforce to ensure that local workers are given due priority.
Companies must illustrate that they cannot find the necessary skills within the local labor market and must present training initiatives aimed at transferring those skills to Nigerian employees. The NCDMB is responsible for scrutinizing this process, deciding which quota applications to approve or deny, to enhance local participation within sectors such as oil and gas.
While the approved quotas are expected to create 13,833 jobs, the Board has made it clear that companies need to secure NCDMB's authorization before seeking permission from the Federal Ministry of Interior.
"Any action outside of this procedure violates the law," emphasized Mr. Emmanuel Paulker, Supervisor of the Planning, Research and Statistics Directorate at the NCDMB.
He shared these insights during the NCDMB Sensitisation Workshop for Midstream Companies and Stakeholders on Friday in Lagos. Paulker also mentioned that the NOGIC JQS portal currently has registrations for 406,000 individuals and 11,445 companies, including 115 operators, although a significant portion of the midstream sector has yet to register.
In a related address, the Acting Director of Monitoring and Evaluation at the NCDMB, Mr. Omomehin Ajimijaye, urged midstream players in the oil and gas industry to adhere to the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act 2010 or face penalties that could include project withdrawal, suspension, or even criminal prosecution.
He further confirmed that obtaining the Nigerian Content Equipment Certificates (NCEC) incurs no processing fees and stated that intermediaries are prohibited from participating in all transactions. Expired or misused NCECs would lead to automatic disqualification from bidding processes.
"This workshop serves as one of the essential avenues for deepening our engagement with the midstream sector. We aim to ensure that stakeholders in midstream and downstream sectors are included in our efforts to expand local content and contribute to the economic development and energy security of our nation," Ajimijaye stated.
Ajimijaye outlined four primary objectives of this engagement session, which include enhancing comprehension of the NOGICD Act, clarifying necessary reporting formats, addressing compliance challenges specific to the midstream industry, and fostering collaboration between the Board and industry stakeholders.
"Your input is vital as we strive to raise Nigerian content levels to 70%. This journey necessitates collaboration and mutual understanding," he concluded.
Engr. Abayomi Bamidele, the Director of Capacity Building, remarked that the Act obliges all operators and contractors to give precedence to Nigerian employment and training. He highlighted that any project or contract worth $1 million or more is required to submit an Employment and Training Plan for the Board's endorsement.
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