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Local Content definition?

asked Mar 24, 2015 in Others by mobassey (1,250 points)

Hello all,

Can anyone provide definition of Local Content please? For the sake of discussion, let's say expats coming from either the US or Europe to an oil/gas country in Africa.

Here’s an example that I’m not sure if it fits local content. If I work for an oil & gas consulting firm that has offices in both the US and Nigeria and I need to hire an engineer who is a Nigerian citizen but lives in the US as a permanent residence, and I will have this person doing works at both locations, US and Nigeria. Does that person being counted as local content? Or it has to be on Nigeria office’s payroll in order to qualify as local content?

Any elaboration is appreciated.

3 Answers

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answered Mar 25, 2015 by Tadd Pham (5,620 points)
Whoever comes to work in a particular country (i.e. Nigeria) or visit more than just a couple of days may be accounted as local content.

We generally tend to account national staffs (e.g. Nigeria) abroad (in the US) as local content mainly for trainees. If the guy is experienced and is actually a US-resident, I don’t know if it’s considered local content.
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answered Mar 26, 2015 by pparrene (1,410 points)

Local content is counted for good and services provide in that particular country, Nigeria as in your example.

The following will be considered local content:

  •          Nigerian hired in Nigeria by your company
  •          Nigerian trained in Nigeria or USA to work in Nigeria
  •          Nigerian hired in USA by your company and transferred to work in Nigeria on Nigeria payroll

Hope the above help.

commented Mar 27, 2015 by mobassey (1,250 points)
Thanks.

I’d like to ask the question in a different way. If US-office hires an Nigerian engineer from Nigeria and brings this engineer (company’ sponsored work visa) to the US for training and working on Nigerian projects but executed in US-office and on US-payroll, does this person counted as Nigerian/Local Content? This person of course will be traveling between the US and Nigeria when he/she needs to go home.
commented Mar 27, 2015 by pparrene (1,410 points)
Yes, it does count as local content since that person is Angolan and getting training in the US.
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answered Mar 27, 2015 by bbenoit (710 points)

I hope below response will give some inputs on local content.

Here’s an example that I’m not sure if it fits local content. If I work for an oil & gas consulting firm that has offices in both the US and Nigeria and I need to hire an engineer who is a Nigerian citizen but lives in the US as a permanent residence, and I will have this person doing works at both locations, US and Nigeria. Does that person being counted as local content? No this won’t count as a local content.

Or it has to be on Nigeria office’s payroll in order to qualify as local content? Yes correct, staff should be in Nigeria's payroll in order to qualify as local content.

commented Mar 27, 2015 by mobassey (1,250 points)
Thanks.

I’d like to ask the question in a different way. If US-office hires an Nigerian engineer from Nigeria and brings this engineer (company’ sponsored work visa) to the US for training and working on Nigerian projects but executed in US-office and on US-payroll, does this person counted as Nigerian/Local Content? This person of course will be traveling between the US and Nigeria when he/she needs to go home.
commented Mar 27, 2015 by bbenoit (710 points)
If Nigerian is hired directly by US-office, then he will become ‘expat’ resource same like us because he comes under US-payroll. US-office does not have any liability on this resource so (s)he is not accounted as Nigerian content.

US-office should mobilize a resource from Nigeria-office (salary and benefits will be from Nigeria) to involve in Nigeria projects which is being executed in the US to claim local content in that project.
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