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Local Content law saves Nigeria US$2bn on LNG Train 7- Wabote

The other consortium had no footprint in-country and it proposed to put extra US$2bn on the back of the project to develop local capacity to execute the project. This is evidence of cost savings associated with the development of Local Content.”

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Modupe ASUDO

LAGOS-THE pragmatic implementation of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act has saved Nigeria the sum of US$2bn in the Engineering Procurement and Construction (EPC) contract for Nigeria LNG Train 7 Project.

The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Simbi Kesiye Wabote dropped the hint on Thursday at the 2020 Annual Capacity Building Workshop organised by the Board for the Judiciary.

The workshop was held via zoom and it drew over 117 participants, including Justices of the Supreme Court, Appeal Court, National Industrial Court, Federal High Court and external solicitors.

Wabote delivered the keynote address at the workshop and stated that contrary to wrong insinuations held in some quarters, ample evidence has proven that sustainable Local Content practice reduces the cost of oil and gas projects in addition to creating job opportunities and economic prosperity.

He gave example with the LNG Train 7 EPC bid, where Saipem Contracting Nigeria and its consortium won the contract with a much lower bid than its competitor, leveraging its commitment to Local Content and investments in Nigeria in the last 50 years.

He said: ”In the LNG Train 7 project contract which was recently concluded and awarded, the difference in price between Saipem that had established itself in Nigeria and the second lowest bidder that was coming from outside the country was US$2bn. That’s a huge sum of money that this country would have lost if not for the drive for the development of Local Content.

“The other consortium had no footprint in-country and it proposed to put extra US$2bn on the back of the project to develop local capacity to execute the project. This is evidence of cost savings associated with the development of Local Content.”

Admitting that developing Local Content and building capacity would always entail some costs at the beginning, the Executive Secretary insisted that such costs ultimately gets reduced overtime and creates much needed jobs and stability in the polity.

He also clarified that the focus of Nigerian Content implementation is not Nigerianization, rather it encourages domiciliation of capacities and promotion of foreign direct investments and home grown investments.

He assured that the NOGICD Act would always protect investments in-country, adding that companies that build capacities are given first right of refusal in industry projects. “The law is a protective instrument for businesses. There are cable manufacturers in Lagos. If there is any opportunity to supply cables to oil and gas companies in Nigeria, those companies have the right of first refusal.”   

On the possibility of recording 100 percent Nigerian Content in the sector, the Local Content boss clarified that “the aspiration is neither possible nor desirable, especially for a developing country like Nigeria. You still need foreign direct investments. The industry is a very vast business, with high intensive technology. You still need to leave some space for foreign participation and investment to grow the industry. But you are going to see 70 percent. That is our aspiration, growing from five percent which was the level when Nigerian Content started.”

Speaking further, the Executive Secretary said Nigerian Content implementation led to the development of huge infrastructural and human capacities, which kept the operations of the oil and gas industry running smoothly at the height of COVID-19, notwithstanding the exit of most expatriates. ”Despite the impact of COVID-19 and expatriates leaving the country, Nigeria’s crude oil production never stopped. We still produced to the limit that were stipulated for us by OPEC. This confirms that Nigerian Content helped the oil and gas industry and ensured that we never felt the impact of COVID-19,” he said.

The Chief Justice of Nigeria, Hon Justice Ibrahim Tanko Muhammed delivered the opening remarks at the workshop, represented by Hon. Justice Olukayode Ariwoola JSC. He described the implementation of Local Content policies across the globe as an apparatus through which citizens of oil rich countries derive value from crude oil resources.

He also thanked the NCDMB for enhancing the capacity of the judiciary to dispense justice from an informed and contemporary position, particularly as it related to Local Content development and oil and gas operations.

Mrs. Rose Chukwuonwe, a Director of Periscope Consulting and former Coordinator Legal Services NCDMB set the background of the workshop. She indicated that one of the Board’s mandate as enshrined in the NOGICD Act, is to build in-country capacity and capabilities of key stakeholders and the legal sector is one of such important groups.

She noted that the workshop was expected to deepen the Justices’ understanding of the philosophy and objectives of the NOGICD Act, increase their understanding of the provisions of the Act and aid seamless implementation and enforcement of the Act.

The workshop was also expected to bridge the knowledge gap, create needed awareness of the workings of the Act and build the necessary synergy for effective implementation and enforcement of the NOGICD Act, she added.

In his comments, the Director of Legal Services, NCDMB, Barrister Mohammed Babangida Umar, stated that “no matter how good your law is, if you don’t have the support of the judiciary it becomes difficult to succeed.”

He assured that the Board would continue to build the capacity of the judiciary, especially the Justices, ”to enable them have a good understanding of the Local Content law, so that when matters around the Act come before them they will be in a good position to dispense Justice.”

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Court Slaps Linda Ikeji With N30m Damages To NBM

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A Delta State High Court in Effurun has ruled in favor of the Registered Trustees of the Neo-Black Movement of Africa, awarding them N30 million in damages in a libel case against popular Nigerian blogger, Linda Ikeji.

The lawsuit, with Ese Kakor, Felix Kupa, and Mayor Onyebueke as claimants, resulted in the court ordering Ikeji to pay N300,000 in litigation costs.

Presiding Justice Roli Daibo-Harriman delivered the verdict in Suit No: EHC/210/2021 on Monday.

Additionally, Ikeji was instructed to publish a retraction of the libellous statements on her blog and in national dailies.

Furthermore, Ikeji has been restrained from making further damaging publications against the claimants.

The Neo-Black Movement of Africa (NBM) took the legal action against Linda Ikeji after she allegedly failed to retract and apologize for a defamatory article published on her blog on October 19, 2021.

The article reportedly labeled the NBM of Africa as a dreaded cult group, black axe, and criminal organization, prompting the claimants to seek N1 billion in damages and an unreserved apology to be published on Ikeji’s blog and in two national newspapers.

Justice Daibo-Harriman, in her ruling, deemed the terms “dreaded cultist group,” “black axe,” and “criminal organization” used in the Defendant’s publication as defamatory.

Kelvin Agbroko, Counsel to the Claimants, emphasized that the ruling “Will serve as a lesson to bloggers that it is not every item you publish. It is good to verify information before making a publication.”

He said, “NBM of Africa is a legal organisation duly registered with the Corporate Affairs Commission. The publication made by the Defendant against my client has been cleared that it was a damaging publication.

“NBM is good to go, we are going to take all necessary steps to enforce the terms of the judgment against her. It was an erudite judgement that is all-encompassing and will be difficult to fault.”

Ese Kakor, President of the NBM of Africa, revealed that the legal proceedings regarding the case had been ongoing for approximately two years.

Kakor expressed his dismay at Linda Ikeji’s actions, stating, “What Ikeji did was just to sell in a bid to defame the character of NBM of Africa. It is very wrong.”

He advised other bloggers against following similar steps, cautioning that they may also face litigation for defamation.

Kakor clarified that the NBM of Africa has no association with cultism, black axe, or criminal activities, emphasizing that it is a well-registered organization.

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Tragedy As VGC Chairman Found Dead In His Car

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In a shocking turn of events, Gihan Mbelu, the esteemed chairman of Victoria Garden City in Lagos’s bustling Lekki area, was found lifeless inside his vehicle.

 

His sudden demise has prompts police inquiry into the mysterious circumstances surrounding his death.

The 42-year-old financial luminary and venture capitalist was found unconscious in his opulent C300 4Matic vehicle around 10:10 am on Friday, April 26, 2024.

According to report, Mbelu was swiftly transported to the Lagos University Teaching Hospital, where a doctor on duty confirmed his unfortunate demise.

Meanwhile, concerned individuals took it upon themselves to examine his vehicle, which had been running for hours at the spot where it was parked.

The post reads “Concerned by the discovery, some of the people in the area, upon close observation of the vehicle, found Mbelu in it.

“While some people speculated that the 42-year-old man might be sleeping, some other persons, who were bent on ascertaining Mbelu’s true state, reportedly made frantic efforts to wake him up but it proved abortive.

“In a bid to rescue Mbelu, it was learnt that he was rushed to the Lagos University Teaching Hospital where he was reportedly confirmed dead by one of the doctors on duty.

“Mbelu’s corpse was said to have been deposited in the hospital’s morgue. The case was also reported to the police for an investigation to commence to ascertain the circumstances surrounding Mbelu’s death.”

Prior to his demise, Mbelu was married to Eloho, a distinguished tech entrepreneur, former investment banker, and private equity investor. Together, they are parents to two daughters.

In response to the news, Benjamin Hundeyin, the spokesperson for the state police command, affirmed the incident on Saturday, April 27, disclosing that an investigation has been launched into the matter.

 

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Suleija Jailbreak: Over 100 Inmates Still Unaccounted For – NCoS

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In the aftermath of the escape from its Suleija facility in Niger State, the Nigeria Correctional Service (NCoS) has disclosed the successful recapture of three escaped inmates.

Despite these efforts, 106 inmates are still on the run.

Abubakar Umar, an Assistant Controller and spokesperson for the NCoS, dismissed rumors circulating online suggesting that 50 inmates had been apprehended, clarifying that only three had been recaptured.

He said “Aside from the 10 earlier recaptured, three more have been recaptured. So, we are on the chase of 106.”

He further dismissed reports from television sources alleging over 8,000 escaping inmates nationwide.

He clarified that following heavy rainfall damaging parts of the Suleija facility, at least 119 inmates had escaped.

During a visit to the facility, Minister of Interior, Dr. Olubunmi Tunji-Ojo, underscored the urgency of relocating the correctional center from its current urban location.

He noted that the facility, originally designed for 250 inmates, was accommodating 499 individuals prior to the incident.

He said; ”Obviously, it was a force majeure. There was a storm and there was a breach of the outer wall of this facility and some of the inmates escaped.

“Of course, we have been able to retrieve about 10 out of the 119. So we have 109 at large and the manhunt is presently ongoing. We will do everything possible to make sure that everyone is brought back”.

Additionally, the Service (NCoS) announced its intention to publish the identities of the escapees at a later time.

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