The House of Representatives yesterday mandated its Committee on Local Content to investigate alleged violations of local content act by foreign oil firms doing business in the country.
The committee, which has two weeks to conclude its assignment, according to a motion by Daniel Reyenieju (PDP, Delta), is to determine whether the operational processes adopted by the firms complied with the provisions of the Nigerian Oil and Gas Industry Content Development Act of 2010.
In the motion, brought under matter of public importance, Reyenieju claimed that the international oil and gas companies have consistently ‘refused to use local assets, against the tenets of the act, enacted to ensure measurable growth of Nigerian content in oil and gas exploitation processes.
He further alleged that despite clear provisions of Section 12 of the Act, which specify foremost consideration of Nigerian goods and services in the evaluation of bids for oil and gas projects, “multi national companies have refused to engage the services of local oil firms and will rather engage the services of foreign vessels that are not flying Nigerian flags and sometimes, working through Nigerian companies as decoy.”
He appealed to the House to ensure that foreign firms adhered to the NOGICD Act, 2010 so as to sanitize the sector.Fred Agbedi (PDP, Bayelsa) said there was need for the Federal government to ensure that all companies doing oil and gas related businesses adhered to the approved guidelines.
The House also resolved to probe the alleged multi-billion United Nations hospital contract scam involving the federal ministry of defence.
Adopting a motion sponsored by Mr. Yusuf Tajudeen during plenary presided by Speaker Yakubu Dogara, the House mandated its Committees on defence, Army and public procurement to carry out a comprehensive investigation into the issue and report back within two weeks.
Tajudeen while moving the motion claimed that the contract was for the relocation and refurbishment of level two hospitals under the United Nations multidimensional integrated stabilization mission in Mali.