Patronage of Local Contractors to Reduce $8bn Capital Flight – Thisday

The House of Representatives Committee on Local Content has said that the patronage of indigenous companies in Nigeria’s oil and gas sector will help reduce an estimated $8 billion yearly capital flight and further promote local content in the sector.

The committee has also vowed to cancel oil and gas contracts awarded by the International Oil Companies (IOCs) to foreign companies where there is in-country capacity and capability to execute such contracts by indigenous companies.

The Chairman of the Committee, Hon. Emmanuel Okon said at the weekend during an inspection of shipyard and fabrication complex operated by West African Ventures (WAV) at Onne in Rivers State that poor patronage of WAV shipyard, fabrication complex and marine facilities of other indigenous companies had worsened capital flight in the oil and gas industry.

According to him, the committee decided to have a physical examination and assessment of facilities put in place by WAV and other indigenous companies so as to avoid supporting indigenous contractors he described as ‘flight by night contractors’ acting as commission agent for foreign companies in Nigeria.