The Federal Government has mandated all operators in the upstream arm of the industry to present valid compliance certificates as proof of their one percent remittances to the Nigerian Content Development Fund (NCDF).
The directive was unveiled by the Nigerian Content Development and Monitoring Board (NCDMB) at a two-day sensitisation workshop in Lagos, aimed at boosting awareness and strengthening regulatory oversight under the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010.
Speaking at the workshop, the Executive Secretary of the NCDMB, Engr. Felix Omotsola Ogbe, emphasized that the newly introduced Nigerian Content Compliance Certificate System would serve as a benchmark for evaluating oil and gas companies’ contributions to local content development. He stressed that every operator, contractor, subcontractor, and partner engaged in any upstream activity is required by law to remit one percent of the value of their contracts into the NCDF.
“This programme is more than a workshop. It is a reaffirmation of our commitment to deepen Nigerian content in the oil and gas industry,” Ogbe said. “The Compliance Certificate System was developed to ensure Nigerian Content requirements are met in all oil and gas projects.”
Ogbe noted that the certificate will serve as an objective and enforceable standard that companies must comply with before undertaking new contracts or continuing ongoing operations. He added that the system would enhance the Board’s ability to track remittances, ensure due process, and enable a more transparent, accountable industry landscape.
As part of the NCDMB’s digital transformation push, Ogbe also launched an upgraded NCDF payment portal, which features improved user experience, simplified remittance procedures, and real-time compliance tracking tools. He said the upgraded system was timely, especially as the implementation of the compliance certification is expected to significantly increase fund inflows.
“With the expected increase in inflow to the fund following the implementation of compliance certification, this upgrade could not have come at a better time,” he added.
In addition to introducing the compliance certificate system, the NCDMB used the forum to sensitise industry players on a revised Community Contractors Finance Scheme, designed to support local contractors in oil-producing host communities. According to Ogbe, the scheme is now managed by First City Monument Bank (FCMB) and offers up to ₦50 million in loans to eligible firms at an 8 percent annual interest rate.
The NCDMB further disclosed that its $400 million Nigerian Content Intervention (NCI) Fund, jointly managed by the Bank of Industry (BoI) and the Nigerian Export-Import Bank (NEXIM), has benefitted over 130 indigenous companies. Ogbe assured that efforts are ongoing to ensure even greater access for Nigerian firms across the value chain.
The two-day workshop brought together oil companies, contractors, financial institutions, and regulatory bodies, all aligning behind the federal government’s agenda to promote local capacity building and eliminate loopholes that allow companies to evade remittance responsibilities.
With this new compliance framework, the Federal Government has not only tightened the screws on fiscal accountability in the oil sector but also reaffirmed its long-term vision of developing a robust, inclusive, and self-sustaining local content system.