Business

November 15, 2010

Expatriate quota: FG bans indiscriminate approvals

By Yemie Adeoye and Oscarline Onwuemenyi

The Nigerian Content Development and Monitoring Board, NCDMB, has stated that 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.

This is one of the action points adopted in a recent meeting in Abuja by the Nigerian Content Development and Monitoring Board, NCDMB, and the Federal Ministry of Interior, FMI, in a bid 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 the creation of employment opportunities for Nigerians through the 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 Internal Affairs or any other agency of the Federal Government.

Speaking at the meeting, the Executive Secretary, NCDMB, Mr. Ernest Nwapa explained that the Board is working closely with many private sector stakeholders, ministries, departments and agencies, MDAs, of government towards the implementation of the Nigerian Content Act.He explained that it is only through such collaboration that the aspiration of the Federal Government to use the Nigerian Content Act to promote the development and utilisation of local capacity, create employment for Nigerians in the oil and gas industry and drive the development of other sectors of the economy will 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 for are not available in_country.

He also stressed the need for a proactive management of human resource 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 being sought by an oil company, he added.

Nwapa clarified that NCDMB is not against the use of expatriates in the 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 Iheanacho, commended the NCDMB for the strategies initiated to boost local content development, adding that his ministry will adopt them and 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 the minister, the Nigerian Immigration Act 1972, NIA, empowers the Ministry to approve or revoke expatriate quotas and also implement the provisions of the NIA Act.

He listed the objectives of the Expatriate Quota Policy to include, filling the gap of 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.

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

He also disclosed that his Ministry is in the process of computerisation of its activities, which will minimise person_to person contacts in the processing of expatriate quota.

He requested the NCDMB to make inputs to the computerisation process, so as to make room for interface between the two bodies, and for them to develop a scarce skills list for the purpose of human resource development in Nigeria.

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