By Christie U. Omonigho
~Access to Approvals, Services Contingent upon Payment Certificate
Energy Window International (Media) – The Nigerian Content Development and Monitoring Board (NCDMB) has reminded operators, contractors, and service companies in the upstream sector of the Nigerian oil and gas industry of their mandatory obligation to remit one percent (1%) Nigerian Content Development Fund (NCDF) levy into the bank accounts officially designated by the Board.
In a statement at the Nigerian Content Tower, Yenagoa, Bayelsa State, the Executive Secretary of NCDMB, Engr. Felix Omatsola Ogbe explained that the NCDF 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 reiterated that entities with coverings were bound to remit one percent (1%) of the value of every upstream contract, adding that NCDMB still has the exclusive authority to manage and administer the fund.
Funds generated under the NCDF according to the Board are deployed to support indigenous oil and gas contractors and service companies, to finance capacity development and training in the industry, enable access to funds for indigenous participation, which also aims at driving 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.”
He urged companies to ensure strict compliance and to seek clarification from the Board where necessary prior to effecting any remittance. Ogbe assured industry stakeholders of the Board’s commitment to transparency, accountability, and the effective utilization of the Fund for the growth and sustainability of Nigerian Content in the oil and gas industry.
According to the Board, obtaining the Nigerian Content Development Fund Compliance Certificate (NCFCC) is now a key requirement for accessing the Board’s regulatory services and approvals.
The NCDF Compliance Certificate the Board says, 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.
It 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 has also advised that oil and gas industry stakeholders regularized their NCDF remittance status, apply promptly for the document as well as ensure continuous compliance to avoid disruptions to operational schedules.