Akwa Ibom loses N180bn revenue from non-compliance of Local Content law

The Akwa Ibom Local Content Compliance Monitoring Committee (LCCMC) has alleged that the state government has lost N180 billion revenue following non-compliance of oil firms with Local Content Act 2010.

The LCCMC Secretary, Mr Eti-mbuk Essien, made this allegation in a letter dated Feb. 10 and addressed to the Managing Director, Total E & P Nigeria Limited.

The letter made available to our reporter on Monday in Uyo noted that Total E & P contractors had not complied with the local content law.

Essien said that the state government was dissatisfied with the company’s prime and subcontractors for violating local content law.

He alleged that Total E &P had successfully operated OFON fields and gas flaring projects from OML 102 without giving any consideration to Akwa Ibom, the host of the fields.

“The Akwa Ibom state government has lost over N180 billion as a consequence of these unholy and ugly practices.

“Such huge amount of money in the coffer of the state government will significantly boost the economy of the state,” Essien said.

Essien called on Total E & P Nigeria Limited to direct all its major and subcontractors to establish functional offices in Akwa Ibom within 30 days from now.

“The uncivilized attitude and the insubordination of your prime and subcontractors, is viewed by the state government as affront and an act of economic sabotage.

“It is the legitimate right of the state indigenes to participate in the business of your prime and subcontractors and the negation is of very serious concern to the state government.

“Please take note that no prime and subcontractors operating within the state territorial water shall be allowed to operate in the state without functional office,” Essien threatened.

Essien said that the state government would no longer condone the untoward attitude of oil firms and their contractors operating in the state.

He said that the contractors to Total E & P Nigeria Limited were violating sections 25, 26, 27 and 28 (1, 2) of the Nigerian Oil and Gas Industry Content Development Act 2010.

“These companies have also violated the Oil Companies and Vessels Regulation of Business, Registration and Plying Levy law 2006 of Akwa Ibom State,” Essien said.

He explained that sections 25, 26 and 27 of Nigerian Local Content Act 2010 made provisions for location of office and engagement of personnel from the project area.

Essien said that Section 28 (1,2) of the law provided for engagement of reasonable number of personnel from areas of significant operations.

He said that the state Law on Oil Companies and Vessels Regulation of Business, Registration and Plying Levy 2006 also required establishment of functional office within 30 days of operations.