Mixed reactions Friday greeted the Nigerian acting leader’s enactment of a law giving preference to local service firms in the oil business, a sector hitherto dominated by multinational giants.
“The bill signed into law by Acting President Goodluck Jonathan on Thursday is a welcome development because, if implemented, it will increase the capacity of local players in the oil industry,” the president of Trade Union Congress, Peter Esele, told AFP.
“The challenge is how to implement the law and maintain discipline in the industry,” he said.
The new law directs that “exclusive consideration” be given to Nigerian firms to provide services to oil majors, Jonathan said as he signed the legislation.
“Henceforth, there shall be exclusive consideration to Nigerian indigenous service companies which demonstrate ownership of equipment, Nigerian personnel and capacity to execute jobs in the Nigerian oil and gas industry,” he said.
“The bill means nothing to the local people in the Niger Delta. It is simply aimed at making money for the elites who have no pity or consideration for the suffering masses of the Niger Delta,” Joseph Eva, president of the Ijaw Monitoring Group, also said.
The Ijaw are the largest ethnic group in the restive oil-rich Niger Delta.
A western diplomat, who demanded anonymity, said that the success of the law “will depend on its application.”
“In reality, the big deal will be the reorganisation of the oil industry, a project which has been on the drawing board for years and in parliamentary debate for several months,” he said.
Armed rebels in the oil-producing Niger Delta have in recent years staged attacks, claiming they are after a greater share of the oil wealth to go to the local communities.
“We are surely on the road to greater security through ownership and participation as well as industrial technology development,” said Jonathan, who hails from the oil-rich region.
Crude is the main foreign exchange earner in the world’s eight oil exporter.