NCDMB mandates the 1% Nigerian Content Fund Levy, linking compliance certificates to access regulatory approvals and services

The Nigerian Content Development and Monitoring Board (NCDMB) has reiterated that remittance of the one per cent Nigerian Content Development Fund (NCDF) levy is compulsory for all operators, contractors, and service companies in the upstream oil and gas sector.

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Speaking at the NCDMB headquarters in Yenagoa, Bayelsa State, on Wednesday, Executive Secretary Felix Ogbe warned that access to regulatory services, approvals, and certifications would now be contingent on presenting a valid NCDF Compliance Certificate.

“The NCDF is a ring-fenced statutory development fund created under Section 104 of the Nigerian Oil and Gas Industry Content Development Act, 2010,” Ogbe explained.

“All remittances of the one per cent levy must be made strictly into accounts officially designated by the Board. Any payment made outside these accounts shall not be recognised as valid under the Act.”

The NCDF is designed to promote indigenous participation in the oil and gas industry by supporting local contractors and service companies, financing capacity development, and facilitating access to affordable industry financing.

Funds are also allocated to sustainable growth initiatives across the oil and gas value chain.

Ogbe stressed that companies covered by the Act must remit one per cent of the value of every upstream contract and urged all stakeholders to ensure strict compliance.

He added that clarification should be sought from the Board before making remittances to avoid errors.

The NCDMB also announced that the NCDF Compliance Certificate has become a mandatory requirement for accessing its regulatory services.

Companies without a valid certificate will be denied approvals, certifications, and other regulatory documents, including the Nigerian Content Equipment Certificate and project and contract clearances.

Stakeholders were advised to regularise remittances promptly through the Board’s fully digital application portal, which requires companies to submit contract details, upload payment evidence, and complete verification before the certificate is issued.

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The renewed directive comes amid concerns that some companies have defaulted on remitting the statutory levy despite previous advisories and sanctions from the NCDMB.