Local Content for the Power sector

Folarin Gbadebo-Smith Energy & Environment

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On December 24, 2014, the Nigerian Electricity Regulatory Commission (NERC) promulgated regulations geared towards stimulating local participation in the power sector.  The regulations require all engineering, legal, and insurance services in the power sector to be rendered by Nigerian companies registered with relevant authorities, except where foreign firms collaborate with Nigerian firms.  The regulations include the following enforcement mechanisms:
  •  A Joint Qualification System which verifies contract capacity and capability and serves as a source of information in review and application of Nigerian content;
  • Required annual Nigerian content performance report covering all projects and activities in the previous financial year;
  • Required annual employment and training plans at the beginning of each financial year (to be submitted to NERC);
  • Power to impose fines and other sanctions on licensees
The regulations also establish a Nigerian content consultative forum which shall conduct periodic surveys to determine the level of participation and advise the commission on the threshold for content power, or other policy proposals relevant to content development.

 

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