The Nigerian Content Development and Monitoring Board has reiterated that the remittance of the one per cent Nigerian Content Development Fund levy remains mandatory for operators, contractors and service companies in the upstream oil and gas sector.
The Board warned that access to its regulatory services, approvals and certifications would now be strictly tied to the presentation of a valid Nigerian Content Development Fund Compliance Certificate.
In a statement issued on Wednesday at the Nigerian Content Tower in Yenagoa, Bayelsa State, the Executive Secretary of the Board, Felix Ogbe, said the levy was backed by law and must be paid into accounts officially designated by the Board.
Ogbe explained that the Nigerian Content Development Fund was established under Section 104 of the Nigerian Oil and Gas Industry Content Development Act, 2010, as a dedicated fund to promote indigenous participation in the oil and gas industry.
He stated that entities covered by the Act are required to remit one per cent of the value of every upstream contract, stressing that the Board has exclusive authority to manage and administer the fund.
Ogbe said, “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.
“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.
“All remittances of the one per cent (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 recognised as a valid payment of the one per cent (1%) NCDF Levy under the Act.
“Companies must ensure strict compliance and to seek clarification from the Board where necessary prior to effecting any remittance.”
The Board also announced that obtaining the Nigerian Content Development Fund Compliance Certificate had become a key requirement for accessing its regulatory services.
According to the NCDMB, without a valid compliance certificate, companies would not be granted access to regulatory documents, certifications, approvals and clearances issued by the Board.
These include the Nigerian Content Equipment Certificate, project and contract approvals, and other regulatory documents.
The agency advised stakeholders to regularise their remittance status and apply promptly to avoid operational disruptions.
It added that the application process is fully digital through the Board’s online portal, where companies are required to submit contract details, upload evidence of payments and complete verification procedures before the certificate is issued.
The renewed warning follows concerns that several companies have allegedly defaulted in remitting the statutory levy despite previous advisories and sanctions issued by the Board.