• Defaulters deny themselves all regulatory support

Sopuruchi Onwuka

Players in the upstream petroleum industry who fail to make mandatory legal payments into designated accounts of the Nigerian Content Development Fund (NCDF) might lose their entitlement to all regulatory support and approvals from the Nigerian Content Development and Monitoring Board (NCDMB).

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The agency which is assigned the responsibility of building local industry capacity and domiciling petroleum industry jobs for in-country execution is also assigned the mandate to manage the NCDF in line with established goals.

However, the board and management of the NCDMB have been lamenting declining compliance level among mainly indigenous companies in meeting their obligations to the NCDF; a situation that threatens full execution of immediate to long term plans of the agency.

Thus, the NCDMB reminded the industry players comprising operators, contractors, and service companies in the upstream petroleum sector of their mandatory obligation to remit their NCDF levy into officially designated bank accounts.

Executive Secretary of NCDMB, Engr. Felix Omatsola Ogbe, demanded companies operating it the upstream petroleum industry to ensure strict compliance to all laws enunciated in the Nigerian Oil and Gas Industry Content Development (NOGICD) Act 2010. He also required them to seek clarification from the board on how to make the remittance.

Engr Ogbe declared 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 (1%) of the value of every upstream contract, adding that NCDMB is vested with 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.

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 (1%) NCDF 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 valid payment of the one percent (1%) NCDF Levy under the Act.”

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 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.

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.” Some of these include Nigerian Content Equipment Certificate (NCEC), approvals and clearances for projects and contracts, and other regulatory documents issued by the Board.

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.

The Board said the process of obtaining the NCFCC is 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.