1% Nigerian content levy remains mandatory, says NCDMB
The Nigerian Content Development and Monitoring Board (NCDMB) has reiterated that the remittance of the one per cent Nigerian Content Development Fund (NCDF) levy remains a mandatory statutory obligation for
The Nigerian Content Development and Monitoring Board (NCDMB) has reiterated that the remittance of the one per cent Nigerian Content Development Fund (NCDF) levy remains a mandatory statutory obligation for operators, contractors, and service companies in Nigeria’s upstream oil and gas sector.
In a statement, the Executive Secretary of the Board, Felix Omatsola Ogbe, said the NCDF is established under Section 104 of the Nigerian Oil and Gas Industry Content Development Act (NOGICD Act), 2010, as a dedicated intervention fund to drive the growth of Nigerian content in the industry.
Ogbe explained that all covered entities are required to remit one per cent of the value of every upstream contract into bank accounts officially designated by the NCDMB, stressing that the Board is vested with the exclusive authority to manage and administer the Fund.
According to him, proceeds from the NCDF are deployed to support indigenous oil and gas contractors and service companies, fund capacity development and skills training, facilitate access to affordable finance for local participation, and promote sustainable growth across the oil and gas value chain.
He further clarified that the NCDF is a ring-fenced statutory development fund created by an Act of the National Assembly and is not classified as Federal Government revenue payable into the Consolidated Revenue Fund.
“The collection and administration of the NCDF are expressly governed by Section 104 of the NOGICD Act,” Ogbe said, adding that any remittance made outside the accounts formally designated by the NCDMB “shall not be recognised as valid payment of the one per cent levy under the Act.”
He urged industry stakeholders to ensure strict compliance with the remittance guidelines and to seek clarification from the Board where necessary before making any payment. Ogbe assured operators that the NCDMB remains committed to transparency, accountability, and the effective utilisation of the Fund to advance Nigerian content development.
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The Board also announced that possession of a valid Nigerian Content Development Fund Compliance Certificate (NCDFCC) has become a prerequisite for accessing NCDMB’s regulatory services and approvals. The certificate confirms that a company has fully complied with its statutory obligation to remit one per cent of the value of upstream contracts.
According to the NCDMB, companies without a valid NCDF Compliance Certificate will be denied access to regulatory documents, approvals, certifications, and clearances, including the Nigerian Content Equipment Certificate (NCEC), project approvals, and other authorisations issued by the Board.
The agency advised oil and gas industry stakeholders to regularise their NCDF remittance status and apply promptly for the Compliance Certificate to avoid disruptions to their operational schedules.
It added that the process for obtaining the NCDF Compliance Certificate is fully digital and accessible through the NCDMB online portal. Eligible companies are required to submit relevant contract and remittance details, upload evidence of NCDF payments, complete verification and compliance review, and obtain the certificate upon confirmation.
The Board noted that the Compliance Certificate serves as validation of a company’s standing with the NCDMB and as a mechanism for promoting transparency, accountability, and sustainable Nigerian content development across the industry.
