The Nigerian Content Development and Monitoring Board (NCDMB) has reminded operators, contractors, and service companies in the upstream sector of the 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 on Wednesday, the Executive Secretary of NCDMB, Felix Ogbe, explained that the NCDF is established under Section 104 of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, 2010, as a dedicated fund for the development of local content in the oil and gas industry.
He reiterated that covered entities are bound to remit one percent of the value of every upstream contract, adding that the NCDMB is vested with the exclusive authority for the management and administration of the fund.
“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,” the executive secretary said.
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 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 recognized as a valid payment of the one percent NCDF Levy under the Act.”
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The executive secretary urged companies to ensure strict compliance and to seek clarification from the board where necessary before effecting any remittance.
He assured industry stakeholders that the board remains committed to transparency, accountability, and the effective utilization of the fund for the growth and sustainability of local content in the oil and gas industry.
Meanwhile, the NCDMB has 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 the statutory obligation to remit one percent 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.”
