‘Non-compliance with local content law costs Akwa Ibom N180bn’
The Akwa Ibom Local Content Compliance Monitoring Committee (LCCMC) has said that the state government lost over N180 billion revenue due to non-compliance of oil firms with Local Content Act of 2010.
In a letter to the Managing Director, Total E & P Nigeria Limited, LCCMC Secretary, Mr Eti-mbuk Essien, which was made available to newsmen in Uyo, the Akwa Ibom State capital, yesterday, the committee alleged that Total E & P contractors had not complied with the local content law. The letter was dated Feb. 10 and referenced AKS/LCU/02/A/ VOL.1/055
Essien said the state government was dissatisfied with Total’s prime and subcontractors for violating local content law, pointing out that the company has 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 coffers of the state government will significantly boost the economy of the state.
“We call 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 their 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’s territorial water shall be allowed to operate in the state without functional office,” he said.
The LCCMC Secretary said the state government would no longer condone the untoward attitude of oil firms and their contractors operating in the state, noting that several indigenes recommended for employment as Community Interface Coordinators (CICs) or Community Liaison Officers (CLOs) had been turned down.