NCDMB insists on 1% NCDF remittance, enforces compliance certificate

The Nigerian Content Development and Monitoring Board (NCDMB) has renewed its directive to operators, contractors, and service providers in Nigeria’s upstream oil and gas sector to strictly comply with the mandatory one per cent deduction for the Nigerian Content Development Fund (NCDF) on all qualifying contracts.

The reminder was contained in a statement issued on Wednesday by the board’s General Manager, Corporate Communications, Dr. Obinna Ezeobi.

The renewed warning signals a tougher enforcement posture, with the board cautioning that failure to comply could affect companies’ access to key regulatory approvals and certifications.

The directive reinforces the board’s statutory mandate to deepen local participation in Nigeria’s oil and gas industry and ensure strict adherence to provisions of the Nigerian Oil and Gas Industry Content Development Act, 2010.

What NCDMB is saying 

The Executive Secretary of NCDMB, Felix Omatsola-Ogbe, stated that the NCDF was established under Section 104 of the Nigerian Oil and Gas Industry Content Development Act, 2010, as a dedicated pool of funds to enhance indigenous participation across the oil and gas value chain.

He emphasised that the law makes it compulsory for all entities engaged in upstream petroleum operations to remit one per cent of the value of every contract into the fund, which is exclusively managed by the board.

• He stated that the NCDF “is a ring-fenced statutory development fund created by a specific Act of the National Assembly.”

• He added 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 added that strict compliance with the one per cent deduction remains critical to sustaining the fund’s impact on local capacity development and industry growth.

Get up to speed 

The Nigerian Oil and Gas Industry Content Development Act, enacted in 2010, was introduced to address the limited participation of indigenous firms in the country’s oil and gas sector.

Prior to its passage, much of the industry’s technical expertise, financing, and procurement were dominated by foreign companies.

• The Act created the NCDF as a ring-fenced intervention fund to finance local capacity development initiatives.
• It mandated a one per cent deduction from every upstream contract awarded in Nigeria’s oil and gas industry.
• The NCDMB was empowered as the sole administrator and custodian of the fund.

Over the years, the NCDF has become a central tool in the board’s efforts to build technical expertise, strengthen indigenous companies, and reduce reliance on foreign service providers.

More Insights 

The NCDF plays a pivotal role in strengthening Nigerian participation in the energy sector by supporting indigenous contractors and service companies through targeted financing and capability development programmes. Proceeds from the fund are channelled into training initiatives, technical development schemes, and affordable financing support for Nigerian firms.

• The fund supports training and human capital development in specialised oil and gas skills.
• It provides access to financing for indigenous contractors seeking to execute large-scale projects.
• It promotes technology transfer and in-country value creation.

The board stressed that the fund is legally ring-fenced and distinct from general government revenues, underscoring that all remittances must be paid strictly into accounts officially designated by the NCDMB to be recognised as valid compliance.

What you should know 

The NCDMB has now made the Nigerian Content Development Fund Compliance Certificate (NCFCC) a mandatory requirement for accessing several of its regulatory services.

Without a valid compliance certificate, companies may be denied access to regulatory documents, certifications, approvals, and operational clearances issued by the board.

• Only remittances paid into officially designated NCDMB accounts will be recognised as valid fulfilment of NCDF obligations.
• Companies are required to verify payment details directly with the board before making remittances.

In February 2025, the NCDMB insisted that international Oil Companies (IOCs) must patronize local firms in the execution of their projects, in line with the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.

The NCDF has reportedly grown into a major industry intervention pool exceeding 300 million dollars, positioning it as one of the key financial instruments used by the board to drive local content enforcement and indigenous enterprise growth in Nigeria’s oil and gas industry.

NCDMB insists on 1% NCDF remittance, enforces compliance certificate  - Nairametrics