The House of Representatives will investigate the Nigerian National Petroleum Corporation (NNPC)’s alleged non-compliance with local content rules in the award of contracts for the Refurbishment and Turn Around Maintenance (TAM) of refineries.
The House reached the decision after a motion on the floor by Rep. Henry Nwawuba, alleging that the NNPC awarded contract for Kaduna and Warri refineries without demanding the local content plan of the two foreign firms that got the contract.
Nwawuba said although the NNPC is adding value to the nation’s hydrocarbon resources in the drive for growth, contracts awarded by it must comply with local content laws which mandate foreign firms to show a robust and viable local content plan to promote and safeguard the growth and development of Nigerian companies
He argued that by the participation of local contractors in such opportunities, the capacity of such local firms are strengthen, especially in terms of capacity development and creating employment opportunities with a positive multiplier effect on the economy.
He expressed concerned that NNPC allegedly awarded the contract for the refurbishment of Warri and Kaduna refineries to SAIPEM and Tecnimont without the submission of their local content plan for the contract’s execution and sustainable maintenance.
He said: “The glaring deliberate abuse of the Nigerian Content Development Act by the NNPC and the contract awarded to foreign companies have caused untold economic hardship to indigenous contractors who employ Nigerian citizens.
“If urgent action is not taken to call NNPC to order, the situation may degenerate to both legal and civil actions capable of undermining the relative peace currently subsisting between the corporation and Nigerian contractors.”