In June 2018, the Senate ad-hoc Committee on Local Content submitted its interim report on the legislative investigation of local content elements and cost variations relating to the Egina Oil Field and other related projects.
The committee was inaugurated on 20th December, 2017 by then Senate President Abubakar Bukola Saraki who was represented at the occasion by the Chief Whip of the Senate, Olusola Adeyeye.
Members of the committee were: Sen Solomon Olamilekan Adeola (Chairman), Sen Godswill Akpabio, Sen Philip Aduda, Sen Albert Bassey, Sen Donald Alasoadura, Sen Gershom Bassey, Sen Kabiru Marafa, Sen Ahmed Abubakar, Sen David Umaru, Sen Chukwuka Utazi and Sen Stella Oduah were members. Mrs Folasade Adigun was the clerk of the committee.
The committee found out that no audit was carried out on the companies that were given the local content elements projects which started in 2013.
Also, the committee observed in it’s finding that the project cost was estimated to be USD 6 billion, however, the cost components for the project were reviewed twice over the life of the project.
Upon the first review, the costs were revised to USD13 billion dollars. It was further revised to USD16,352,000,000. USD 1,235.67 billion was observed as variation from the initial contract given to six companies that bidded for the pipeline project.
The committee recommended that a value for money audit be approved for further auditing by reputable consultants in the following areas of the project: (a) Technical; (b) Finance; (c) project management;with a legal team. They also say that the Nigerian Oil and Gas Industry Content Development (NOGICD) Act 2010 be amended to make provision for sector “linkages” of the Economy such as ICT, Construction, Power and Manufacturing.
Even though the Committee’s report seems to have died with the previous assembly, three years after, nothing has been done about the issues raised in the report.