News

November 8, 2010

FG repeals expatriate quota approvals for oil industry

By Yemie Adeoye
COMPANIES seeking to get expatriate quota approvals for their operations in the oil and gas industry must first advertise the positions to Nigerians through national and international media outfits as the Federal Government is set to repeal automatic expatriate quota approvals in the industry.

This was one of the action points adopted by the Nigerian Content Development and Monitoring Board, NCDMB, and the Federal Ministry of Interior, FMI, in their efforts to ensure efficient management of expatriate quota approvals and compliance with the Nigerian Content Act.

NCDMB and FMI also agreed to cooperate in data sharing on applications for expatriate quota, manpower development initiatives and creation of employment opportunities for Nigerians through effective management of expatriate quota approvals.

Section 32 of the Nigerian Oil and Gas Industry Content Development Act stipulates that for each of its operations, an operator or project promoter may retain a maximum of five per cent of management positions as may be approved by the Board as expatriate positions to take care of investor interests.

Section 33 of the NOGICD Act also mandates operators to apply and receive the approval of the Board before making any application for expatriate quota to the Ministry of Interior or any other agency of the Federal Government.

Speaking at the meeting which held in Abuja, the Executive Secretary, NCDMB, Engr. Ernest Nwapa, explained that the Board was working closely with many private sector stakeholders, ministries and agencies of government towards the implementation of the Nigerian Content Act.

He explained that it was only through such collaborations that the aspiration of the Federal Government to use Nigerian Content Act to promote the development and utilization of local capacity, create employment for Nigerians in the oil and gas industry and drive the development of other sectors of the economy would be realised.

According to the Executive Secretary, issues associated with expatriate quota are directly linked with human capacity development in the industry, hence companies operating in the industry and applying for expatriate quota must show that the skills sought are not available in Nigeria.

He also canvassed the need for a proactive management of human resources issues in the industry, to avoid the normal fire fighting approach to issues surrounding expatriate quota applications.
He added that the Board will soon begin to receive data on capacities of Nigerians residing in the country and in the Diaspora, which will be fed into the NOGICD Joint Qualification System.

When operational, it will be easy to query the NOGICD JQS to ascertain whether Nigerians possess the skills set being sought by any company, he added.
Nwapa clarified that NCDMB is not against the use of expatriate in the oil and gas industry as there is a compelling need for transfer of technology.

He however, noted that there is a need for companies to identify available positions that require expatriates, the number required by the industry, what they coming in to do and when they will depart.

In his comments, the Minister of Interior, Capt Emmanuel Ihenacho commended NCDMB for the strategies it had initiated, adding that the ministry will adopt them as they will ensure efficiency in the management of expatriate quota.

He explained that he was conversant with the issues raised by the Board having worked previously on the Cabotage Act, which he described as a major tool for capacity building in the marine sector.

The Minister regretted the non_existence of hi_tech strategy for knowing the skills gap in the industry today and assured that the Ministry of Interior will support NCDMB in its initiatives in this regard.

Ihenacho further stated that the Ministry is about commencing a scheme that will ensure that all applications for expatriate quota will be preceded by an advertisement of the skills required by the applying companies.

He said the Ministry will also develop a standard letter for all applying companies, which shall include the requirement for a strategy to have a Nigerian occupy the position that is been filled by an expatriate.

According to him, the Nigerian Immigration Act 1972 (NIA) gives the Ministry of Interior the powers to approve or revoke expatriate quotas and it is also responsible for implement provisions of the NIA Act.

He also listed the objectives of the Expatriate Quota Policy to include filling up inadequate supply of manpower, training of local manpower, attracting foreign investment and achieving transfer of technology, whereby two Nigerians will be attached to understudy an expatriate.

Ihenacho admitted that these objectives have not been achieved and proposed the setting up of a joint committee made up of representatives from FMI, NCDMB & Department of Petroleum Resources to scrutinize all applications for expatriate quota before approvals are given.

He also indicated that the Ministry of Interior was about to begin the computerization of its activities, which will minimize person_to person contacts in the processing of expatriate quota.

He requested NCDMB to make inputs to the computerization process, so as to make room for interface between the two bodies.

Ihenacho also harped on the need for the Ministry and NCDMB to develop a scarce skills list for the purpose of human resources development in Nigeria.

Also speaking at the meeting, the Permanent Secretary, Ministry of Interior, Alhaji S.B Ozigi announced that the Ministry is planning to hold a Stakeholders’ Forum on expatriate quota administration and requested NCDMB to participate in the planning of the forum.