Lithium deal: NPP communicator’s claim about local content in Nigeria’s oil and gas false

On December 12, 2023, a member of the New Patriotic Party’s (NPP) communication team, Kingsley Amoakwa-Boadu said the local content in Nigeria’s oil and gas industry is 90 percent.

He made this claim as a panellist on TV3’s New Day Programme.

The NPP communicator was defending the lithium agreement signed between the government of Ghana and Barari DV.

Although some civil society groups, political parties and influential individuals in the country have insisted that Ghana could have gained more from the transaction, Mr Amoakwa-Boadu argued that since Ghana is a novice in lithium production, the current agreement is the best.

This is the very first lithium agreement we are signing and so we cannot expect 50-50% because we do not have the capacity and the resources to mine it on our own – Kingsley Amoakwa-Boadu explains.#TV3NewDay pic.twitter.com/oP6Euh1nNr

— #TV3GH (@tv3_ghana) December 12, 2023

Fact-Check Ghana has verified the claim and presents the facts below.

Claim: “Now there is something called resource nationalism. We are so nationalistic about our resources and whoever is coming in we probably give them service contract. Countries that do these have had about hundred years of giving concessions, building local content, building the resources that will let them later on take over. So, for instance, in the Nigerian oil and gas industry, they now have 90 percent local content.”

Verdict: False

Explanation:

According to the Petroleum Commission of Ghana, local content refers to the quantum or percentage of locally produced materials, personnel, financing, goods and services rendered to the oil industry which can be measured in monetary terms.

Currently, the local content in Nigeria’s oil and gas industry is 54%. This was indicated by the Executive Secretary of the Nigerian Content Development and Monitoring Board, Mr Simbi Wabote, on December 5, 2023, when expressed concern about the level of involvement of local Nigerian companies in the country’s oil and gas sector.

During the opening ceremony of the 12th edition of the Practical Nigerian Content Forum (PNCF) held in Yenagoa, Bayelsa State, he said:

“Your Excellencies and distinguished ladies and gentlemen…, it is my pleasure to announce that the 2023 Nigerian Content level in the Nigerian oil and gas industry is 54% based on our monitoring and evaluation of industry activities. This is similar to the 54% NC level achieved last year.

“While the 54% NC Level achieved in 2023 is commendable, it calls for industry stakeholders to reflect if this is a sign of stagnation or the inflexion point leading to the decline in NC level in the oil and gas industry. From where I sit, I see some disturbing signs pointing in that direction, and I believe we can counter these emerging dynamics as this is not the first time we have faced such an onslaught on local content practice.

“I am sure you all know that getting the industry to this level of Nigerian Content is not a walk in the park, and I believe all discerning stakeholders in the industry will play their part to prevent us from going back to the dark days of implementing Nigerian Content as a token of consolation. The nexus between high Nigerian Content levels and the relative peace in the industry must not be lost on us.”

From the above, it is clear that the NPP’s Kingsley Amoakwa-Boadu’s claim that Nigeria’s local content in its oil and gas industry is 90 percent is completely false.