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.
The Executive Secretary of NCDMB, Felix Omatsola Ogbe made the call in a statement in Yenagoa, Bayelsa state
Ogbe explained that the Nigerian Content Development Fund established under Section 104 of the Nigerian Oil and Gas Industry Content Development Act, 2010 is a dedicated fund for the development of Nigerian content in the oil and gas industry.
He reiterated that covered entities are bound to remit one percent (1%) of the value of every upstream contract, adding that NCDMB is vested with the exclusive authority for the management and administration of the fund.
Funds generated under the Nigerian Content Development Fund are deployed to support indigenous oil and gas contractors and service companies, finance capacity development and training in the industry and drive sustainable growth across the oil and gas value chain.
MUST READ: UBEC Partners NCDMB To Improve Basic Education In Nigeria
“The NCDF is a ring-fenced statutory development fund created by a specific Act of the National Assembly, not classified as Federal Government revenue payable into the Consolidated Revenue Fund.
All remittances of the one percent (1%) NCDF levy must be made strictly into the accounts officially designated by the NCDMB” Ogbe stated.
While assuring industry stakeholders that the Board remains committed to transparency, accountability, and effective utilization of the Fund for the growth and sustainability of Nigerian Content in the oil and gas industry, the Executive Secretary urged companies to ensure strict compliance and to seek clarification from the Board where necessary prior to effecting any remittance.
In a related development,
the NCDMB has announced that obtaining the Nigerian Content Development Fund Compliance Certificate (NCFCC) has become a key requirement for accessing the Board’s regulatory services and approvals.
The NCDF Compliance Certificate 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.
The Board 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.
(Editor: Anoyoyo Ogiagboviogie)
