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NCDMB Tightens Oil Sector Contracting Rules, Bars Transfer of NCEC Certificates

By Desk Round Reports


Nigeria’s oil and gas regulator, the Nigerian Content Development and Monitoring Board (NCDMB), has issued new guidance aimed at speeding up contracting processes and blocking firms without proven technical capacity from winning industry jobs.

The Board said the NCEC Application Guidance Notes, which take effect from December 2025, are designed to strengthen compliance with Presidential Directives on local content and to eliminate unqualified intermediaries from the contracting chain.

Under the rules, possession of a valid Nigerian Content Equipment Certificate (NCEC) remains mandatory for participation in oil and gas contracting. 

NCDMB warned that the misuse or unmerited possession of NCECs has been a major contributor to contracting delays and the admission of firms lacking capacity.

According to the Board, the guidance notes target widespread abuses including multiple certificate applications unsupported by real assets, forged documentation, under-declared personnel and the use of non-existent offices or equipment. 

The measures are also intended to ensure that credible service companies can secure approvals more quickly by meeting requirements at the first application stage.

The NCEC framework covers eight categories: Manufacturing and Related Services, Fabrication and Construction, Construction and Moveable Equipment, Services and Support, Quality Control Inspection and Testing, Non-Moveable Assets, Procurement and Supplies, and Consultancy Services.

Service companies are required to apply only for categories aligned with their core operations and to provide detailed evidence of their capabilities through the NCEC portal. 

READ ALSO: NCDMB Backs APPO, Africa Energy Bank Ahead of Launch

NCDMB stressed that it does not charge fees for NCEC applications, processing or approvals, and that the use of agents or third parties in submitting applications is prohibited.

The Board also ruled out the transfer of NCEC certificates, stating that companies, subsidiaries or local partners cannot apply separately using the same facilities, equipment or documentation. 

Firms applying for multiple NCECs must demonstrate sufficient assets, personnel and infrastructure for each category, with NCDMB reserving the right to conduct facility inspections to verify claims.

Certificates, the guidance notes added, are issued only on the basis of existing and functional capacity, not anticipated investments. Requests to upgrade or expand services on an existing certificate will be treated as fresh applications and subjected to full verification.

Certain services, including GSM providers, commercial airlines, educational institutions, legal advisory firms, public relations services, government agencies and community-based CSR projects, are exempt from NCEC requirements.

Commenting on the new rules, the Executive Secretary of NCDMB, Engr Felix Omatsola Ogbe, urged oil and gas stakeholders to study the guidance notes carefully.

Omatsola warned that the submission of forged or falsified documents constitutes a criminal offence and would attract legal and administrative sanctions.

Ogbe added that the Board has set target timelines for processing applications, with the NCEC portal providing time-stamped records of submissions and reviews to enhance transparency.





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