Edith CHUKU
The Nigerian Content Development and Monitoring Board NCDMB, has urged operators, contractors, and service companies in the upstream sector of the Nigerian oil and gas industry to comply strictly to the remittance of one percent Nigerian Content Development Fund NCDF levy.
The fund which is paid into the bank accounts officially designated by the board are deployed to support indigenous oil and gas contractors and service companies, to finance capacity development and training in the industry.
It is also to enable access to affordable finance for indigenous participation, and to drive sustainable growth across the oil and gas value chain.
In a statement by the board’s Corporate Communications Division, Mr. Obinna Ezeobi, made available to TNN on Wednesday, the NCDMB Executive Secretary, Mr. Felix Omatsola 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 Nigerian 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 NCDMB is vested with the exclusive authority for the management and administration of the fund.
Also, NCDMB revealed that obtaining the Nigerian Content Development Fund Compliance Certificate (NCFCC) has become a key requirement for accessing the Board’s regulatory services and approvals.
According to the board, The NCDF Compliance Certificate is issued to companies to confirm their full compliance with statutory obligation to remit one per cent (1%) of the value of every contract awarded in the upstream sector of the oil and gas industry.
Ogbe’s words “the NCDF is a ring-fenced statutory development fund created by a specific Act of the National Assembly 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.
“All remittances of the one percent NCDF levy must be made strictly into the accounts officially designated by the NCDMB, any remittance made outside the accounts formally designated by the NCDMB shall not be recognized as valid payment of the one percent NCDF Levy under the Act.
“Companies should ensure strict compliance and seek clarification from the Board where necessary prior to effecting any remittance.”
The NCDMB boss assured industry stakeholders that the Board remained committed to transparency, accountability, and the effective utilization of the fund for the growth and sustainability of Nigerian Content in the oil and gas industry.
On obtaining the NCFCC certificate, he said, “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.
“Oil and gas industry stakeholders are advised to regularise their NCDF remittance status, apply promptly for the document and ensure continuous compliance to avoid disruptions to operational schedules.”
NCDMB further revealed that the process of obtaining the NCFCC was 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 is a validation of a company’s standing with the Board, and serves as a mechanism for promoting transparency, accountability, and sustainable Nigerian content development.
