Remittance of 1% Content Levy Mandatory, NCDMB Tells Oil, Gas Upstream Firms

The Nigerian Content Development and Monitoring Board (NCDMB) has reminded operators, contractors and service companies in the upstream sector to comply with the one per cent Nigerian Content Development Fund (NCDF) deduction on all contracts.

This is contained in a statement on Wednesday by the General Manager Corporate Communications Division Executive of NCDMB, Dr Obinna Ezeobi.

The NCDMB Executive Secretary, Mr Felix Omatsola-Ogbe, said that the fund 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.

He said that the under act, entities are bound to remit one per cent of the value of every upstream contract, adding that 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.

“The funds are also deployed to enable access to affordable finance for indigenous participation, and to drive sustainable growth across the oil and gas value chain,” he said.

Omatsola-Ogbe clarified further that “the NCDF is a ring-fenced statutory development fund created by a specific Act of the National Assembly”.

He added that it is “not classified as a 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 per cent NCDF levy must be made strictly into the accounts officially designated by the NCDMB.

He said that any remittance made outside the accounts formally designated by the NCDMB “shall not be recognised as valid payment of the one per cent 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 utilization of the Fund for the growth and sustainability of Nigerian content in the oil and gas industry.

Furthermore, 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 board said without a valid NCDF compliance certificate, access to regulatory documents, certifications, approvals and clearances issued by NCDMB shall not be granted.

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. (NAN)