Nigeria's National Content Bill

Nigeria's recent efforts to pass local content legislation with stringent targets and stiff penalties have drawn widespread attention, spurred ongoing debate and prompted numerous international workshops and seminars. Lack of local content has been blamed for high unemployment and lack of capacity, and even been linked to militancy in the Niger Delta region. After much debate and delay, the bill has become law. This article reviews the bill's history and tracks the hype surrounding Nigeria's moves towards a legislative mandate. It discusses the provisions of the bill, observing that it is poorly drafted, vague and therefore difficult to comply with. The bill could also violate international agreements, such as bilateral investment treaties and GATT, and is unnecessary in the face of contractual alternatives that could be successfully utilized to enhance local content. Contract models contain ample provisions for enabling local content and have been successfully employed by other resource-rich nations.