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 one percent Nigerian Content Development Fund (NCDF) deduction on all contracts.
Dr. Obinna Ezeobi, the General Manager of NCDMB’s Corporate Communications Division Executive, made this announcement on Wednesday.
According to Mr. Felix Omatsola-Ogbe, Executive Secretary of the NCDMB, 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.
He added that NCDMB has the exclusive jurisdiction to manage and administer the fund and that under the statute, companies are required to send one percent of the value of each upstream contract.
“Money raised under the NCDF is used to support local oil and gas service providers and contractors, as well as to fund industry training and capacity building.
He added, “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 created by a specific Act of the National Assembly,” Omatsola-Ogbe added.
He went on to say that it is “expressly governed by Section 104 of the NOGICD Act and is not classified as a Federal Government revenue payable into the Consolidated Revenue Fund.”
He emphasised that all payments for the 1% NCDF fee must be placed precisely into the accounts that the NCDMB has formally designated.
Any contribution 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 businesses to make sure they were strictly compliant 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, the Nigerian Content Development Fund Compliance Certificate (NCFCC) is now a crucial prerequisite for gaining access to the board’s regulatory services and approvals, according to the NCDMB.
The board stated that access to regulatory papers, certificates, approvals, and clearances issued by NCDMB will not be permitted without a valid NCDF compliance certificate.
To prevent interruptions to 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)
