IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 22 Apr 2010 | Removal date: open ended
Still in force

Localisation incentive

The Nigerian Oil and Gas Industry Content Development Bill (2010) has been signed into law by the acting president Goodluck Jonathan. The law gives preference to local companies in the oil industry in Nigeria and seeks to encourage local employment.
 
The new law sets comprehensive and detailed discriminatory requirements for projects in the oil and gas industry. Not only are services and equipment used for the exploration natural resources subjects to the new rules. Also, auxilliary services such as financing and insurance are affected by the new law. The following list seeks to enumerate the core aspects of the bill:
 

  • Submission of Nigerian Content Plan. When bidding for a licence, companies have to submit a plan specifying the utilization of Nigerian goods and services in the prospective project. Also, companies will have to provide details on how they will train and develop Nigerian staff.
  • Compliance with mandatory amounts of Nigerian content. In the schedule attached to the Bill, the Nigerian government enumerates. Nigerian content requirements for both products and services. Companies operating in oil and gas industry will have to prove their compliance to the given rules.
  • Nigerian content as an evaluation criteria in official tenders. In case further bids lie within 1 percent of the best bid, the bid withholding a significantly higher share of local content shall be awarded the contract.
  • Preferential price margin for domestic bidders. Bids from Nigerian companies are granted a 10 percent price margin against the lowest foreign competitor.
  • Employment and development of Nigerian staff. Nigerians shall be given first priority in employment as well as training.
  • Quotas for foreign workers. Foreign personal may only account for 5 percent of the management staff for a given project.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

351 Paints & varnishes & related products; artists' colours; ink
3208 Paints and varnishes (including enamels and lacquers) based on synthetic polymers or chemically modified natural polymers, dispersed or dissolved in a nonaqueous medium; solutions as defined in Note 4 to this Chapter.
320810 Based on polyesters
320890 Other
3209 Paints and varnishes (including enamels and lacquers) based on synthetic polymers or chemically modified natural polymers, dispersed or dissolved in an aqueous medium.
320910 Based on acrylic or vinyl polymers
320990 Other
374 Plaster, lime & cement
2523 Portland cement, aluminous cement, slag cement, supersulphate cement and similar hydraulic cements, whether or not coloured or in the form of clinkers.
252310 Cement clinkers
252321 White cement, whether or not artificially coloured
252329 Other
252390 Other hydraulic cements
412 Products of iron or steel
7210 Flatrolled products of iron or nonalloy steel, of a width of 600 mm or more, clad, plated or coated.
721012 Of a thickness of less than 0.5 mm
721050 Plated or coated with chromium oxides or with chromium and chromium oxides
721061 Plated or coated with aluminiumzinc alloys
721070 Painted, varnished or coated with plastics
7216 Angles, shapes and sections of iron or nonalloy steel.
721621 L sections
721631 U sections
721632 I sections
721633 H sections
721640 L or T sections, not further worked than hotrolled, hotdrawn or extruded, of a height of 80 mm or more
721669 Other
7304 Tubes, pipes and hollow profiles, seamless, of iron (other than cast iron) or steel.
730411 Of stainless steel
730419 Other
730424 Other, of stainless steel
730429 Other
730431 Colddrawn or coldrolled (coldreduced)
730439 Other
730490 Other
7305 Other tubes and pipes (for example, welded, riveted or similarly closed), having circular crosssections, the external diameter of which exceeds 406.4 mm, of iron or steel.
730511 Longitudinally submerged arc welded
730519 Other
730520 Casing of a kind used in drilling for oil or gas
7306 Other tubes, pipes and hollow profiles (for example, open seam or welded, riveted or similarly closed), of iron or steel.
730611 Welded, of stainless steel
730619 Other
730630 Other, welded, of circular crosssection, of iron or nonalloy steel
730690 Other
421 Structural metal products & parts
7308 Structures (excluding prefabricated buildings of heading 94.06) and parts of structures (for example, bridges and bridgesections, lockgates, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors,
730810 Bridges and bridgesections
730820 Towers and lattice masts
730830 Doors, windows and their frames and thresholds for doors
730840 Equipment for scaffolding, shuttering, propping or pitpropping
730890 Other
422 Tanks, reservoirs & containers of iron, steel or aluminium
7309 Reservoirs, tanks, vats and similar containers for any material (other than compressed or liquefied gas), of iron or steel, of a capacity exceeding 300 l, whether or not lined or heatinsulated, but not fitted with mechanical or thermal equipment.
730900 Reservoirs, tanks, vats and similar containers for any material (other than compressed or liquefied gas), of iron or steel, of a capacity exceeding 300 l, whether or not lined or heatinsulated, but not fitted with mechanical or thermal equipment.
429 Other fabricated metal products
7310 Tanks, casks, drums, cans, boxes and similar containers, for any material (other than compressed or liquefied gas), of iron or steel, of a capacity not exceeding 300 l, whether or not lined or heat insulated, but not fitted with mechanical or thermal equ
731010 Of a capacity of 50 l or more
731021 Cans which are to be closed by soldering or crimping
7312 Stranded wire, ropes, cables, plaited bands, slings and the like, of iron or steel, not electrically insulated.
731210 Stranded wire, ropes and cables
731290 Other
432 Pumps, compressors, hydraulic & pneumatic power engines; parts
8481 Taps, cocks, valves and similar appliances for pipes, boiler shells, tanks, vats or the like, including pressurereducing valves and thermostatically controlled valves.
848110 Pressurereducing valves
848130 Check (nonreturn) valves
848140 Safety or relief valves
848180 Other appliances
848190 Parts
439 Other general-purpose machinery & parts
8418 Refrigerators, freezers and other refrigerating or freezing equipment, electric or other; heat pumps other than air conditioning machines of heading 84.15.
841850 Other furniture (chests, cabinets, display counters, showcases and the like) for storage and display, incorporating refrigerating or freezing equipment
841869 Other
841891 Furniture designed to receive refrigerating or freezing equipment
841899 Other
442 Machine-tools & parts
8459 Machinetools (including waytype unit head machines) for drilling, boring, milling, threading or tapping by removing metal, other than lathes (including turning centres) of heading 84.58.
845929 Other
448 Domestic appliances & parts
8418 Refrigerators, freezers and other refrigerating or freezing equipment, electric or other; heat pumps other than air conditioning machines of heading 84.15.
841810 Combined refrigeratorfreezers, fitted with separate external doors
841821 Compressiontype
841829 Other
841830 Freezers of the chest type, not exceeding 800 l capacity
463 Insulated wire & cable; optical fibre cables
8544 Insulated (including enamelled or anodised) wire, cable (including coaxial cable) and other insulated electric conductors, whether or not fitted with connectors; optical fibre cables, made up of individually sheathed fibres, whether or not assembled with
854411 Of copper
854419 Other
854420 Coaxial cable and other coaxial electric conductors
854442 Fitted with connectors
854449 Other
854460 Other electric conductors, for a voltage exceeding 1,000 V
854470 Optical fibre cables
493 Ships
8907 Other floating structures (for example, rafts, tanks, coffer dams, landingstages, buoys and beacons).
890790 Other

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