The Nigerian Content Development and Monitoring Board (NCDMB) has reminded operators and service companies in Nigeria’s upstream oil and gas sector that payment of the statutory one per cent Nigerian Content Development Fund levy remains mandatory.
The NCDMB said companies that fail to remit the levy into officially designated accounts risk losing access to key regulatory approvals and services.
In a statement issued on Wednesday at the Nigerian Content Tower in Yenagoa, Bayelsa State, the Executive Secretary of the NCDMB, Felix Omatsola Ogbe, said the levy is required under Section 104 of the Nigerian Oil and Gas Industry Content Development Act.
Ogbe explained that all covered entities are required to remit one per cent of the value of every upstream contract, adding that the Board has exclusive responsibility for managing and administering the fund.
According to the NCDMB, proceeds from the Nigerian Content Development Fund are used to support indigenous oil and gas contractors, finance training and capacity development, improve access to affordable funding, and promote sustainable growth across the industry’s value chain.
The Executive Secretary also clarified that the fund is a ring-fenced statutory development pool and not federal government revenue payable into the Consolidated Revenue Fund.
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He asserted that any remittance made outside accounts formally designated by the Board would not be recognised as valid payment under the law.
The Board urged companies to seek clarification before making payments where necessary and said it remains committed to transparency and accountability in the use of the fund.
In addition, the NCDMB announced that possession of a Nigerian Content Development Fund Compliance Certificate has become a prerequisite for accessing its regulatory services.
The certificate, it stressed, confirms that a company has fully complied with the obligation to remit the one per cent levy on upstream contracts.
The Board disclosed companies without a valid certificate would be denied access to regulatory documents, approvals and clearances, including Nigerian Content Equipment Certificates and project-related authorisations.
It advised Industry players to regularise their remittance status and apply promptly for the certificate to avoid disruptions to operations, revealing that the application process is fully digital and available through its online portal.
The NCDMB stated that the compliance certificate serves as proof of good standing with the regulator and as a tool for promoting transparency and sustainable Nigerian content development.