ICT Stakeholders Inaugurate Association To Tap Into Investment Opportunities In The Oil Sector

As part of efforts to reduce technology transfer and tap into the huge investment opportunities inherent in the Oil and Gas sector, the Nigerian Content Consultative Forum ICT (NCCF-ICT) sectoral working group of the Nigerian Content Development and Monitoring Board (NCDMB) has inaugurated the ICT Local Content Association (ICTLOCA ).

ICTLOCA will be responsible for the protection of the interest of local ICT practitioners, enforcement and implementation of the NOGICD Act and other local content policies of government on the use and deployment of indigenous Information Communication Technology products and services in the oil and gas sector and other sectors of the Nigerian economy for the benefit of local ICT practitioners.

An election of National Officers of the association also took place at the Stakeholders meeting, which was held in Lagos recently.

ICTLOC

According to a statement made available to eBusiness Life by the Treasurer of the Association, Mr. Gbolahan Awonuga, the ICT Local Content Association is to ensure that ICT practitioners are allowed to benefit from the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, which has provided them the right and platform to participate in the provisions of ICT goods and services in the oil and gas sector and to also tap into the over $190 billion local content market following the creation of the NCCF-ICT sectoral working group by the NCDMB.

The statement pointed out that that there is lack of awareness/information about the provisions of the NOGICD Act , which in recognizing the importance of IT/ICT to the oil and gas sector specifically in section 58(f), directed the NCDMB to set up the NCCF- ICT required to consist of stakeholders, government and regulatory agencies in the ICT sector with first consideration given to Nigerians for the provisions of goods and services in the sector.

“The Local Content Act allows Nigerian ICT players to provide 75 per cent rental of communication lines, 85 per cent telecommunication subscription services; 95 percent of public address system services as well as 75 percent of other information system/ IT services. The Act also allows Nigerian IT practitioners to provide up to 45 per cent of network installation/support services; 51 per cent of software development and support services, 51 per cent of computer-based modeling services, 51 per cent of computer-based simulation/training programmes services and 51 per cent of CAL/CAP services.

“Others include 50 per cent of hardware installation support services, 50 per cent of operating system installation/support services, 60 per cent of user support/help desk services, 70 per cent of library service, 50 per cent of IT management consultancy services, 50 per cent of data management services, 60 per cent of telecommunication installation/support services and 60 per cent of data and message transmitting services.

“Conversely, wealth generated in the private sector will be more beneficial to millions of Nigerians, especially in job creation and knowledge diffusion,” the statement said.

It would be recalled that inn 2012, investment in Nigeria’s oil industry currently amounted to about $18 billion annually. This investment trend was expected to increase annually beyond 2012, which led to the creation of the Nigerian content support fund. This fund was designed to operate a free zone concept and provide working capital for local companies, thereby bringing down the cost of funds.

At the beginning of 2014, the NCDMB estimated that the implementation of the Local Content Act had attracted $5bn worth of investments into the country and created around 38,000 jobs. Added to the growing value of the Nigerian Content Development Fund (established under the Local Content Act, and collected from one per cent of all contracts awarded in the upstream oil and gas sector), used for guaranteeing lending to Nigerian service companies and for infrastructure and training investment by the NCDMB, which reached $350m at the turn of the year, making the tangible benefits of the strong local content policy significant.

Meanwhie, an election of National Officers of the association was also carried out at the meeting.

1. Barr. Akinwale Akingbade – President.

2. Ms. Olubusayo Atoki – Vice President

3. Mr. Adebunmi Akinbo – Secretary

4. Mr. Gbolahan Awonuga – Treasurer

5. Mrs. Abibat Olatunji – Legal Adviser

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