Committee says 1000 companies in A’Ibom violate Local Content Act

The Akwa Ibom Local Content Compliance Monitoring Committee (LCCMC) has alleged that more than 1000 companies operating in the state violate Local Content Act 2010.

Speaking in an interview yesterday in Uyo, the LCCMC chairman, Mr. Samuel Afobi, said many companies in the state had violated the local content law.

“The state government has frowned at the lukewarm attitude of these operators, who are hiding and operating under a guise and failed to comply with the Content Act 2010.

“The Akwa Ibom State Local Content Compliance Monitoring Committee is poised to ensure that international oil companies, Nigerian companies and their contractors fully comply with the law,” he said.

He lamented that many companies operating in the state did not employ the indigenes in their operations and was yet to engage local contractors.

“These companies do not carry out community development and have not shown evidence of corporate social responsibility (CSR),” Afobi alleged.

The chairman said that the committee had written to the companies, mostly those operating in Eket-Ibeno industrial area since July this year on local content compliance.

He said that the committee would commence enforcement of the local content law before the end of this month.

“It is unacceptable that the companies have failed to comply with sections 25, 26, 27 and 28 (1,2) of the Nigerian Oil and Gas Industry Content Development Act 2010.

“Some of these companies have also violated the Oil Companies and Vessels Regulation of Business, Registration and Plying Levy law 2006 of Akwa Ibom State,” he said.

He explained that sections 25, 26 and 27 of Nigerian Local Content Act 2010 had provisions for location of office and engagement of personnel from the project area.

Afobi said that section 28 (1,2) of the law provided for engagement of reasonable number of personnel from areas of significant operations.

He said that the state Law on Oil Companies and Vessels Regulation of Business, Registration and Plying Levy 2006 also required establishment of functional office within 30 days of operations.

The chairman then appealed to all companies operating in the state especially in the oil and gas sector to cooperate with the local content committee in enforcing the law of the land.

He expressed optimism that industrial harmony would be achieved in the state when all the companies comply with the local content law.

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