Defaulters of local content law to lose 5% on contract sum

Henceforth, defaulters of the local content law in the nation’s oil and gas industry are to lose five per cent on total contract sum, Executive Secretary, Nigerian Content Development and Monitoring Board, Engr. Simbi Wabote, has warned.

Wabote, announced the disincentive to erring oil and gas firms during the Dangote Petroleum Refinery and Petrochemical Free Trade Zone Enterprises (DPRP) Nigerian Content Sensitization/Awareness Creation Programme, titled: “Let’s Walk the Nigerian Content Talk Together,” at Lekki Free Trade Zone, in Lagos at the weekend.

Reading further sanctions to defaulters of the Nigerian Content law, Wabote, who was represented by by the Board’s Director in charge of Monitoring and Evaluation said non-compliance with the law, will also result in the suspension of projects/contracts, withdrawal of NCDMB’s services, and project cancellation unrecoverable sunk cost.

Other penalties for non-compliance, according to the Executive Secretary, are escalation to other regulators to withdraw or suspend licence, withdrawal of approval for declassification of contractor from pre-qualification list, application of the full weight of the law in accordance with Section 68, and publication of non-compliant operators in newspapers and professional gazettes.

Source: The Sun

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