NCDMB Insists on 1% Nigerian Content Levy Remittance By Oil Firms Amid Resistance

• Says access to approvals, services dependent on payment certificate

Peter Uzoho

The Nigerian Content Development and Monitoring Board (NCDMB) has reminded operators, contractors, and service companies in the upstream sector of the Nigerian oil and gas industry of their mandatory obligation to remit the one percent Nigerian Content Development Fund (NCDF) levy into the bank accounts officially designated by the Board.

In a statement issued yesterday in Yenagoa, signed by the Board’s General Manager, Corporate Communications, Dr. Obinna Ezeobi, the Executive Secretary of NCDMB, Felix Ogbe, explained that the NCDF was established under Section 104 of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, 2010, as a dedicated fund for the development of Nigerian content in the oil and gas industry.

The NCDMB has been complaining that some oil firms, especially indigenous Nigerian companies, which are the direct beneficiaries of the levy, have been refusing to pay it.

But in their reactions, however, the indigenous companies have alleged that NCDMB was using some part of the fund on projects that do not support the growth of local capacity in the oil and gas sector.

But in the statement, Ogbe reiterated that covered entities in the Local Content Act were bound to remit one percent one per cent of the value of every upstream contract, adding that NCDMB was vested with the exclusive authority for the management and administration of the fund.

He stated that funds generated under the NCDF are deployed to support indigenous oil and gas contractors and service companies, to finance capacity development and training in the industry, to enable access to affordable finance for indigenous participation, and to drive sustainable growth across the oil and gas value chain.

Ogbe clarified further that, “the NCDF is a ring-fenced statutory development fund created by a specific Act of the National Assembly,” adding that “it is not classified as federal government revenue payable into the Consolidated Revenue Fund and its collection and administration are expressly governed by Section 104 of the NOGICD Act.”

He stressed that all remittances of the one percent  NCDF levy must be made strictly into the accounts officially designated by the NCDMB, pointing out that, “any remittance made outside the accounts formally designated by the NCDMB “shall not be recognised as valid payment of the one percent NCDF Levy under the Act.”

He urged companies to ensure strict compliance and to seek clarification from the Board where necessary prior to effecting any remittance.

The executive secretary assured industry stakeholders that the Board remains committed to transparency, accountability, and the effective utilisation of the Fund for the growth and sustainability of Nigerian Content in the oil and gas industry.

Furthermore, the NCDMB announced that obtaining the Nigerian Content Development Fund Compliance Certificate (NCFCC) has become a key requirement for accessing the Board’s regulatory services and approvals.

The NCDF Compliance Certificate is issued to companies to confirm their full compliance with statutory obligation to remit one per cent of the value of every contract awarded in the upstream sector of the oil and gas industry.

The Board stated that “without a valid NCDF Compliance Certificate, access to regulatory documents, certifications, approvals, and clearances issued by NCDMB shall not be granted.”

Some of these include Nigerian Content Equipment Certificate (NCEC), approvals and clearances for projects and contracts, and other regulatory documents issued by the Board.

The agency advised oil and gas industry stakeholders to regularise their NCDF remittance status, apply promptly for the document and ensure continuous compliance to avoid disruptions to operational schedules.

The Board said the process of obtaining the NCFCC is fully digital and accessible via the NCDMB online portal.

It advised all eligible companies to submit relevant contract and remittance information, upload evidence of NCDF payments, complete verification and compliance review, and obtain the Compliance Certificate upon confirmation.

According to NCDMB, obtaining the NCDF Compliance Certificate matters because it was a validation of a company’s standing with the Board and serves as a mechanism for promoting transparency, accountability, and sustainable Nigerian content development.