The National Assembly Joint Committee on Local Content has asked International Oil Companies (IOCs) to desist from blacklisting Nigerian owned companies in the sector.
The Chairman, Senate Committee on Local Content, Sen. Solomon Adeola, gave the warning when the joint committee paid a fact finding visit to Solewant on Monday in Port Harcourt.
Solewant is a Nigerian company involved in pipe coating for the oil and gas companies in the country.
The company had raised concerns over plans by the IOCs to blacklist it and other Nigerian companies in the oil and gas industry, over alleged lack of competence.
“Nobody can blacklist Nigerian companies so far they are in compliance with the extant laws guiding their activities.
“From our assessment of the company, we see a company that is good at what it does and nobody can blacklist it,” Adeola said.
On ensuring that local companies offer quality services to avoid being pushed out of the market, Adeola advised them to abide by the laws guiding their operations.
“For instance, a lot of issues were raised by Solewant when they visited Abuja concerning lack of capacity or inability of the company to carry out some of its functions.
“However, from our assessment today, the company is capable of delivering quality service.
“While I know they may not be able to deliver 100 per cent, let us not forget that the local content initiative is about capacity building.
“I can assure you that there is room for them to keep working at it to compete favourably.
“That is why the local content development fund was set up to set aside certain funds for capacity building of local companies,” he said.
“Any local company that is deficient in its services can access the fund and there is nothing wrong with technology transfer.
“They can collaborate and work in conjunction with some technical partners, home or abroad so that whatever contract they are bidding for can be seen to deliver effectively,” he said.
He stressed that to encourage local content, the national assembly had commenced amendment of the local content development act.
According to him, what the national assembly is trying to do regarding amendment of the act, is to expand the scope of local content beyond oil and gas.
He pointed out that the amendment would focus on other sectors like communication, technology and construction among others.
“There is a need for us to ensure that local content is playing its role to the fullest.
“Do not forget that driving local content is not about driving away investment.
“It is about ensuring Nigeria’s participation in all of these industries and that is what we stand for.
“So, expanding the law is to ensure that other line sectors are accommodated in the existing local content development act.
“So, in the next one month or so, we will work on expanding the act,” he said.
On facilities in Solewant, Adeola expressed satisfaction with the fact that it is a complete locally owned company with over 40 million dollars investment and over 250 skilled Nigerian employees.
Chairman House Committee on Local Content, Rep. Emmanuel Ekon, said the committee would continue to work to support local content in the country.
He expressed satisfaction with the plants owned by Solewant.
“I am satisfied with what I have seen. This is my first contact with the company and I must say it is the pride of local content.
“These are the kind of companies that we have to push so that the IOCs can also patronise them.
“On the act, I will not say we are going to completely pass it. I have started something in the House of Representatives diversify local content to cover other critical sectors of the economy and it has gone through first reading.
“It might look simple but to diversify is not simple because you have to look at treaties entered into with other countries and bilateral agreements.
“So, we need an international lawyer that will ensure that when we pass the act, we will not get into serious scrutiny by companies in those sectors.
“For instance, in the construction industry,it is very common to hear that Nigerian Government goes to China to borrow money.
“When they borrow, there are some conditions, so we need to navigate through all those treaties before we can come out with a clean bill,” he said.
The Managing Director of Solewant, Mr Solomon Ewanehi, thanked the committee for taking out time to assess its facilities.
He said the company was penned down for blacklisting before the national assembly’s intervention.
“Talking about blacklisting, there were blackmails but the issues have been resolved amicably.
“We are a product of local content and we want to state here that the facility that was toured by the lawmakers is a world class facility that has come to stay.
“We are known for excellent project delivery, which is the essence for which we are offering service to the international oil companies and the EPC contractors.
“We want to mill our pipes here, coat and deliver them to companies that require them in-country and also export.
“We have evidence to show we are delivering world class products to the industry,” he said.
On challenges faced in sourcing raw materials locally, Ewanehi said the company was working round the clock to make it possible.
He noted that the company was already collaborating with a company in Canada to ensure that it commenced production of raw materials in a few years.
The managing director said the company was working towards becoming “a hub where we have our pipe coating mill, pipe mill and then produce the raw materials to enable us add value to the Nigerian local content dream.”
He said the company would vigorously pursue its dream to give local content more prominence in the oil and gas sector and beyond.(NAN)