The Nigerian Content Development and Monitoring Board (NCDMB) has directed operators, contractors, and service providers in Nigeria’s upstream oil and gas sector to strictly comply with the mandatory remittance of the one per cent Nigerian Content Development Fund (NCDF) levy into accounts officially designated by the Board.
In a statement, the Executive Secretary, Felix Omatsola Ogbe, stressed that any payment made into accounts not formally approved by the Board will not be recognised as valid settlement of the statutory one per cent NCDF levy.
He 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 to promote the growth of Nigerian content within the oil and gas industry. Entities covered by the Act are required to remit one per cent of the value of every upstream contract, while the NCDMB retains exclusive authority over the administration and management of the Fund.
According to the Board, proceeds from the NCDF are used to support indigenous oil and gas contractors and service companies, fund training and capacity development initiatives, improve access to affordable financing for local players, and drive sustainable growth across the industry’s value chain.
Ogbe further clarified that the NCDF is a ring-fenced statutory development fund created by an Act of the National Assembly. It is not classified as Federal Government revenue payable into the Consolidated Revenue Fund, as its collection and administration are specifically governed by Section 104 of the NOGICD Act.
He urged stakeholders to ensure full compliance and to seek clarification from the Board where necessary before making any remittances. He also reaffirmed the Board’s commitment to transparency, accountability, and the effective utilisation of the Fund to strengthen Nigerian content development.
In addition, the NCDMB announced that obtaining the Nigerian Content Development Fund Compliance Certificate (NCDFCC) is now a mandatory requirement for accessing its regulatory services and approvals.
The certificate confirms that a company has fulfilled its statutory obligation to remit one per cent of the value of every upstream contract. Without a valid NCDF Compliance Certificate, companies will be denied access to regulatory documents, certifications, approvals, and clearances issued by the Board, including the Nigerian Content Equipment Certificate (NCEC) and other project-related authorisations.
The Board advised industry players to regularise their NCDF remittance status and apply promptly for the certificate to avoid disruptions to their operations.
It added that the application process is fully digital and available through the NCDMB online portal. Eligible companies are required to submit contract and remittance details, upload proof of NCDF payments, complete the verification process, and obtain the certificate upon confirmation of compliance.
The NCDMB emphasised that the NCDF Compliance Certificate serves as proof of good standing with the Board and as a mechanism to promote transparency, accountability, and sustainable development of Nigerian content in the oil and gas sector.