Alarmed by the non patronage of a multi-million dollar internationally certified Nigerian Pipe Manufacturing and Coating Company, SCC Nigeria Limited by International Oil Companies (IOCs) and Nigeria National Petroleum Corporation (NNPC), contrary to the Nigeria Oil and Gas Industry Content Development (NOGICD) Act since 2014, the Nigerian Senate says it would soon commence investigation into the matter.
The Chairman of the Senate Committee on Local Content, Senator Solomon Olamilekan Adeola who made the disclosure while speaking at an oversight visit to the company in Ushafa, Bwari Area Council of the Federal Capital Territory, lamented that the company which had earlier employed over 500 Nigerians was being abandoned.
Senator Adeola said the Company had in time past manufactured different specifications of pipes for NNPC, Mobil Producing, Shell Development Company Limited, Nigeria Agip Oil Company, Chevron Nigeria Limited to the tune of $183.76 million between 2008 and 2014 and has not been patronised again.
"There is no way our local industries can be competitive against foreign company’s imported products without patronage based on our local content law. We are surprised that we have such an internationally certified company here in Nigeria with antecedent of executing major contracts in the past and employing many Nigerians not being patronized as per our law.
“Already, some constituents of a member of the Senate has been laid off as a result of non patronage while huge foreign exchange has been taken abroad to procure pipes. Our law grants local company right of first refusal and there is no reason why this should not apply to this company,” he added.
Speaking also, the Senator representing Kogi West, Dino Melaye said it was totally unacceptable for such a company with huge investment and the potential to employ hundreds of Nigerians to be left idle.
“We will not accept the NNPC and OICs to take pipeline contracts abroad contrary to our law. The Committee must dig further to unravel why the company is not being patronized beyond the issue of competitive pricing”
The Committee requested the Company to furnish it with relevant information on their predicament as the Committee was going to take up the issue with NNPC, IOCs and other stakeholders with a view to ensuring that the company receives all the necessary attention it deserves. It concluded that possible breach of the NOGICD Act by the NNPC and IOCs beyond the issue of competitive pricing would be investigated.
