Operators, contractors, and service providers in the upstream industry have been reminded by the Nigerian Content Development and Monitoring Board (NCDMB) to adhere to the one percent Nigerian Content Development Fund (NCDF) deduction on all contracts.
Dr. Obinna Ezeobi, General Manager, Corporate Communications Division Executive, NCDMB, gave this information in a statement on Wednesday.
Section 104 of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, 2010 established the fund as a specific fund for the development of Nigerian content in the oil and gas industry, according to NCDMB Executive Secretary Mr. Felix Omatsola-Ogbe.
He stated that under the statute, firms must send one percent of the total value of each upstream contract, and that NCDMB has the exclusive jurisdiction to manage and administer the fund.
“Money raised under the NCDF is used to finance industry training and capacity building, as well as to assist local oil and gas contractors and service providers.
He stated that the funds are also used to promote sustainable growth throughout the oil and gas value chain and to make it possible for indigenous people to access reasonable financing.
Additionally, Omatsola-Ogbe explained that “a specific Act of the National Assembly created the NCDF, which is a ring-fenced statutory development fund.”
He further stated that its administration and collection are specifically governed by Section 104 of the NOGICD Act and that it is “not classified as a Federal Government revenue payable into the Consolidated Revenue Fund.”
He emphasized the need to strictly deposit the 1% NCDF levy payments into the accounts that the NCDMB has legally established.
According to him, a contribution made outside of the accounts officially specified by the NCDMB “shall not be recognized as valid payment of the one percent NCDF Levy under the Act.”
He advised businesses to guarantee tight adherence and, if required, to ask the board for clarification before making any remittances.
For the expansion and sustainability of Nigerian content in the oil and gas sector, the Executive Secretary reassured industry stakeholders that the Board is still dedicated to openness, responsibility, and the efficient use of the Fund.
Additionally, the Nigerian Content Development Fund Compliance Certificate (NCFCC) is now a necessity to acquire the board’s regulatory services and approvals, according to the NCDMB.
The board stated that access to regulatory papers, certificates, approvals, and clearances issued by NCDMB cannot be provided without a valid NCDF compliance certificate.
In order to prevent delays in operational schedules, the agency recommended that stakeholders in the oil and gas sector regularize their NCDF remittance status, apply for the document as soon as possible, and maintain continuous compliance. (NA)
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