Nigeria’s oil and gas regulator has issued a firm warning to upstream operators that compliance with the Nigerian Content Development Fund levy is not only mandatory but now directly tied to their ability to secure approvals, certifications, and operational clearances.

The Nigerian Content Development and Monitoring Board reminded contractors, operators, and service companies that they are required by law to remit one percent of the value of every upstream contract into accounts officially designated by the Board. The directive was delivered at the Nigerian Content Tower in Yenagoa, Bayelsa State, where the agency emphasised that payments made outside the approved channels would not be recognised as valid.

Executive Secretary of the Board, Felix Omatsola Ogbe, explained that the Nigerian Content Development Fund was created under the Nigerian Oil and Gas Industry Content Development Act as a dedicated mechanism for strengthening indigenous capacity in the sector. He reiterated that covered entities are legally bound to contribute one percent of each upstream contract, while the Board retains exclusive authority over the management and administration of the fund.

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According to him, resources from the fund are used to support indigenous contractors and service providers, finance training and capacity development, improve access to affordable funding for local participation, and promote sustainable growth across the oil and gas value chain. 

He underscored the legal status of the fund, stating that “the NCDF is a ring-fenced statutory development fund created by a specific Act of the National Assembly,” and that it is “not classified as Federal Government revenue payable into the Consolidated Revenue Fund and its collection and administration are expressly governed by Section 104 of the NOGICD Act.”

Ogbe further stressed that payments must be made strictly into accounts designated by the Board, warning that “any remittance made outside the accounts formally designated by the NCDMB shall not be recognised as valid payment of the one percent NCDF Levy under the Act.” He urged companies to seek clarification where necessary before making payments and assured stakeholders that the Board remains committed to transparency, accountability, and effective utilisation of the fund to sustain Nigerian content development.

In a move that raises compliance from a financial obligation to an operational necessity, the Board announced that obtaining the Nigerian Content Development Fund Compliance Certificate has become essential for accessing its regulatory services. The certificate confirms that a company has fulfilled its statutory obligation to remit the levy on all upstream contracts.

The agency stated that “without a valid NCDF Compliance Certificate, access to regulatory documents, certifications, approvals, and clearances issued by NCDMB shall not be granted,” effectively making the document a gateway to doing business within the regulated space. This includes equipment certification, project approvals, contract clearances, and other official authorisations issued by the Board.

Industry stakeholders were advised to regularise outstanding remittances, apply promptly for the certificate, and maintain continuous compliance to avoid disruptions to project timelines and operations. The Board noted that the application process is fully digital through its online portal, requiring companies to submit contract details, provide evidence of payments, undergo verification, and obtain confirmation once compliance is established.

According to the regulator, the certificate serves not only as proof of payment but also as validation of a company’s standing with the Board, reinforcing transparency, accountability, and the long-term development of Nigerian participation in the oil and gas industry.

Meiza Nigeria