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In Akwa Ibom Committee accuses companies of violating local content law

The chairman said that the committee would commence the enforcement of the law this week.

  • Published:
Udom Emmanuel play

Akwa Ibom governor, Udom Emmanuel

(Akwa Ibom Dakada)

The Akwa Ibom Local Content Compliance Monitoring Committee (LCCMC), had alleged that more than 1,000 companies operating in the state failed to comply with the Local Content Act 2010.

The Chairman of the committee, Samuel Afobi, disclosed this in an interview with the News Agency of Nigeria (NAN) on Sunday in Uyo.

Afobi noted that many companies operating in the state had violated the law six years after it was enacted.

He said that many companies operating in the state did not employ the indigenes or engaged local contractors as provided by the law.

“The state government has frowned at the lukewarm attitude of these companies towards compliance with the provisions of the Local Content Act.

“These companies do not carry out community development projects and have not shown evidence of engaging in their Corporate Social Responsibility.

“The LCCMC is poised to ensure that the multinational oil companies as well as the indigenous ones and their contractors fully comply with the law,” Afobi said.

He said that the committee in July wrote to the companies, especially those operating in Eket-Ibeno industrial axis, on the need for compliance.

The chairman said that the committee would commence the enforcement of the law this week.

“It is unacceptable that the companies have failed to comply with Sections 25, 26, 27 and 28 (1&2) of the Nigerian Oil and Gas Industry Content Development Act 2010.

“Some of these companies have also violated the Oil Companies and Vessels Regulation of Business, Registration and Plying Levy Law 2006 of Akwa Ibom State,” he added.

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

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

The chairman appealed to all the companies in the state, especially those in the oil and gas sector, to comply with the laws.

He expressed optimism that there would be industrial harmony in the state when the companies complied with the laws.

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