Local Content Performance

At Lumkalt we are of the view that maximizing local content makes good business sense as lower composite rates can be realized by increasing Nigeria labour and material resources especially where these items are readily available and the prices are commercially attractive.

Objectives of Nigeria Content Plan
Lumkalt Energy Limited Content plans for the execution of this project is aimed at the advancement of National Capabilities and seeks to achieve the following objectives.

Increase Value Added Content.
Lumkalt and its sub-contractors are committed to working together in a manner that would bring value to Nigerian employees. Lumkalt will by this plan increase value added content, thereby contributing to employee’s overall value both financial and technical wise. We believe this is a cardinal factor that would bring about cost effectiveness for future projects to be executed in Nigeria.

Development of Technical Know-How
Another important objective of this plan shall be the development of skills of Nigerian personnel in Lumkalt. As much as possible, the working knowledge of Nigerians will be used to develop technical know-how. Beyond the duration of this contract, Lumkalt Energy Limited would have built capacity utilization to enable it handle future projects of this kind 100%.

Training / Education of Nigeria Personnel
Lumkalt invests heavily in the provision of comprehensive training programmes aimed at developing the capacity of Nigeria Staff to enable them participate in high level activities during the courage of project. The deployment of Nigerians, however, does not compromise the required project quality standard.

Competent Nigerian Contractors
Lumkalt shall employ the services of competent and qualified local contractors to provide technical, non-technical services and supports when required. Materials and equipment shall be sourced locally unless otherwise. The nature of this project does not give room for compromise of quality. Therefore, the deployment of specialized tools, equipment and personnel shall not be in contest.

Responsibilities to the Host Communities
Lumkalt Energy Limited owes a social responsibility to the habitants of the project host community. Lumkalt shall provide Development Assistance Package to the host community relative to the project. Provisions for the engagement of skilled/unskilled labor shall be made.
“Good community relations go beyond the verbal interaction with the community here to say; they include making things to happen in important areas of community’s life”. such potential anticipated community demands include:

• Claims for damages resulting from project activities.
• Demand for employment of community youths as part of the labor manpower.

Strategies towards Mitigation of Community Problems

• We must, where necessary, settle all realizable community requests and, pay the necessary courtesy call, homage and Development Assistance Package to community chief and leaders, and employed as agreed in the Memorandum of Understanding (MOU) the number of local unskilled labor force on mobilization to site.
• Community liaison officer (CLO) shall be appointed to handle community issues as the company commitment to fulfilment of its social responsibility. The CLO responsibility shall be to interact with the local population to always be in the picture of any foreseeable grievance or compliant.
• CLIENT shall be regularly informed of the state of our relationship with host communities.
  New Initiatives In Solving Community Problems
• Inform CLIENT security or project sponsor department of any community disturbance or theft on site.
• Polite handling of issues or complaints involving community and show concern with the community while explaining issues
• Shut down operations before situation gets out of hand
• Engage the community leaders and CLIENT CLO in the resolution of the problem

Communication Structure
Effective communication network with host communities shall be regularly maintained, as part of the company proactive approach to community relations’ management, through:

• Frequent visit to the community and interaction with CLIENT CLO in the area, clan head, chiefs, and other community representatives in an effort to explore areas of cooperation and understanding.
• Appointment of local liaison representative from host community (if necessary) as information link between host community and the company.
• Identification of key community representatives in order to build good rapport and mutual understanding for effective communication

Induction Programme for Personnel
Induction programs shall be organized for all company personnel to educate them on the various customs, norms, and issues in the project host community. This will enhance the company’s proactive relations posture with host communities

Engagement of Local Labour
The overall labor relations plan for the engagement of community labor is geared towards reducing agitations to the minimum by ensuring that all agreement entered into with the host community shall be respected to the latter. The communities shall benefit from the company’s allocation of unskilled labor.

The mechanism for selection of local labor depends on the authorized community representatives; this could either be through hire or subcontract supply arrangement. This singularly could lower the tide of community agitation.