1% Content Levy Now Mandatory for Oil and Gas Upstream Firms – NCDMB

Operators, contractors, and service providers in the upstream sector have been reminded by the Nigerian Content Development and Monitoring Board (NCDMB) to adhere to the Nigerian Content Development Fund (NCDF) deduction of one percent on all contracts.

Dr. Obinna Ezeobi, General Manager, Corporate Communications Division Executive, NCDMB, made this announcement on Wednesday.

According to NCDMB Executive Secretary Mr. Felix Omatsola-Ogbe, the fund was created as a special fund for the advancement of Nigerian content in the oil and gas sector under Section 104 of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, 2010.

According to him, NCDMB has the exclusive jurisdiction to manage and administer the fund, and under the statute, firms are required to send one percent of the value of each upstream contract.

“Money raised through the NCDF is used to support local oil and gas service providers and contractors, as well as to fund industry training and capacity building.”

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

The NCDF is a ring-fenced statutory development fund established by a particular Act of the National Assembly, Omatsola-Ogbe added.

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 continued.

He emphasized that all 1% NCDF levy payments must be placed directly into the NCDMB-designated accounts.

Any transfer made outside of the accounts officially specified by the NCDMB “shall not be recognized as valid payment of the one percent NCDF Levy under the Act,” he stated.

Before making any remittances, he advised enterprises to make sure they were strictly in compliance and to ask the board for clarification if needed.

The Board is still dedicated to openness, responsibility, and efficient use of the Fund for the expansion and sustainability of Nigerian content in the oil and gas sector, the Executive Secretary reassured industry stakeholders.

Additionally, according to the NCDMB, obtaining the Nigerian Content Development Fund Compliance Certificate (NCFCC) is now a crucial prerequisite for using the board’s regulatory services and approvals.

The board stated that access to regulatory papers, certificates, licenses, and clearances issued by NCDMB would not be permitted without a current NCDF compliance certificate.

To prevent delays in operational schedules, the agency recommended that stakeholders in the oil and gas sector regularize their NCDF remittance status, apply for the document as soon as possible, and maintain continuous compliance. (nan)