REGULATION ON NATIONAL CONTENT DEVELOPMENT FOR THE POWER SECTOR, 2014

Regulations require power sector licensees to prefer Nigerian goods and services in operations. They target power companies and contractors to promote local employment and capacity building. This reduces foreign procurement and supports a sustainable power sector.

What Is This Policy?

NERC regulations requiring power sector licensees to give preference to Nigerian goods, services, and personnel in their procurement and operations, aligned with the Nigerian Content Development and Monitoring Board (NCDMB) framework.

Who Does It Target?

Power generation, transmission, and distribution companies Engineering, procurement, and construction (EPC) contractors in the power sector Equipment manufacturers and service providers NERC as the licensing and oversight authority

What Does It Aim to Achieve?

Develop local capacity in the power sector, reduce capital outflows from foreign procurement, create employment for Nigerians, and build a sustainable domestic power equipment and services industry.

Key Features

Nigerian Content Plans: Requires all NERC licensees to prepare and implement Nigerian Content Plans approved by NERC. Procurement Preferences: Mandates preference for Nigerian companies and locally manufactured equipment where these meet required standards. Employment Targets: Sets targets for Nigerian national employment at all levels including senior management. Technology Transfer: Requires training and skills transfer to Nigerian personnel in technical and management roles.

Current Status

Rollout Stage: Active Coverage: All NERC-licensed power sector entities Beneficiaries: Nigerian engineers, technicians, manufacturers, and service providers Funding: Implemented within licensee operational budgets

How to Access

Licensees must submit Nigerian Content Plans to NERC for approval Annual reporting on Nigerian content compliance is mandatory Contractors must demonstrate local content in bids for power sector projects Application method: Engage NERC for content plan submission and approval.

Important Terms

Non-compliance with approved Nigerian Content Plans may result in regulatory sanctions Local content calculations must be verified and reported transparently Waivers for foreign procurement require NERC approval on a case-by-case basis

Official Resources

Website: https://www.nerc.gov.ng Contact: Nigerian Electricity Regulatory Commission (NERC)

Legal Framework

Issued under the regulatory powers of the Nigerian Electricity Regulatory Commission (NERC) pursuant to the Electric Power Sector Reform Act (EPSRA) 2005, drawing on the national content mandate of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act 2010 as extended to the power sector. Operates alongside the Electricity Act 2023 and NERC Licensee obligations. Aligns with the National Industrial Policy and the National Content Policy for the power sector.