The Senate Committee on Local Content has vowed to investigate the non patronage of a multi-million dollar internationally certified Nigerian Pipe Manufacturing and Coating Company, SCC Nigeria Limited by NNPC and International Oil Companies (IOCs) contrary to the Nigeria Oil and Gas Industry Content Development (NOGICD) Act since 2014.
Speaking at an oversight visit to the company in Ushafa, a suburb in Abuja, Chairman of the Committee, Senator Solomon Olamilekan Adeola lamented that a company which had over 500 employees was left idle.
He 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.
Senator Solomon Adeola, who led 11 members of his Committee, including two principal officers of the Senate on an inspection tour of the factory over the weekend, said that the Committee will investigate the possible breach of the NOGICD Act by the NNPC and IOCs beyond the issue of competitive pricing.
He added that, “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,” Senator Adeola stated.
Adeola requested the company to furnish the Committee 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 employed many Nigerians
Senator Dino Melaye (APC, Kogi West) a member of the Committee described as unacceptable to have such a huge specialized manufacturing concern which has employed many Nigerians remain 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”, Dino said.
Earlier, the Director of Operation of SCC Nigeria Limited, Engineer Wale Adebayo told members of the Committee that the Company got its last order in 2014, saying that since then there had been several pipeline contracts in the industry without recourse to the only Nigeria pipe manufacturing and coating company.