NCDMB tightens oil and gas contracting rules to block middlemen and cut delays
New NCEC guidance takes effect from December 2025 as the Board moves to shut out unqualified firms and reduce production costs.
Nigeria’s oil and gas contracting process has long struggled with delays, rising production costs and the presence of companies that lack the technical capacity to execute the jobs they bid for. The Nigerian Content Development and Monitoring Board says it is moving decisively to change that narrative.
In a bid to speed up contracting timelines, eliminate unqualified intermediaries and reduce the cost of oil and gas production, the Board has issued new Nigerian Content Equipment Certificate Application Guidance Notes, which take effect from December 2025.
The guidance notes, now available on the NCDMB website and the NCEC application portal, form part of ongoing efforts to implement Presidential Directives on local content requirements. The directives mandate the Board to take stronger steps to eliminate intermediaries in the contracting process who cannot demonstrate real operational capacity.
According to the Board, possession of a valid Nigerian Content Equipment Certificate remains a critical requirement for participating in Nigeria’s oil and gas contracting process. The guidance notes point to abuse of the certification system as a major source of inefficiency, stating that “unmerited possession and or misapplication of the NCECs during tendering and bid evaluations contribute to contracting delays and admittance of unqualified intermediaries into the contracting process.”
NCDMB explained that the new document is designed to address persistent challenges that have undermined confidence in the system. The Board said the guidance notes are meant to “tackle cases of single and multiple NCEC applications not matched to capacities on ground, submission of fake or forged documents, under declaration of personnel, non-existent offices or equipment, and many other dubious applications.” By clearly outlining requirements, the Board said the document would also enhance timely review and approval of applications from genuine service companies by enabling them to submit credible applications at the first attempt.
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The guidance notes cover certificates issued across eight service categories, including manufacturing and related services, fabrication and construction, construction and moveable equipment, services and support, quality control inspection and testing, non-moveable assets, procurement and supplies and consultancy services.
Service companies are required to clearly define their specific service offerings and provide sufficient supporting evidence when applying under any category through the application portal. The Board stressed that it does not solicit or require any payment for the application, processing or approval of Nigerian Content Equipment Certificates or any of its certifications.
In a move aimed squarely at cutting out middlemen, NCDMB stated that “in line with the Presidential directive on Local Content compliance, NCDMB prohibits the use of agents, middlemen or third parties in raising or submission of NCEC application on behalf of service companies.” It added that service companies registered on the NOGIC Joint Qualification System are fully liable for any claims or documentation submitted in support of NCEC applications or other certifications using their assigned login details.
The document further clarified that companies, including subsidiaries or local partners, cannot apply for or obtain certificates as separate entities using the same facilities, equipment, assets or documentation, stressing that Nigerian Content Equipment Certificates are not transferable for use by another company.
NCDMB also cautioned service companies to apply only for certificates aligned with their core service areas, noting that spurious applications slow down the processing of genuine requests. The Board warned that cases determined to constitute abuse of the NCEC application process would attract applicable sanctions.
For companies seeking multiple certificates, the guidance notes state that applicants must possess adequate capacity in terms of assets, facilities, equipment and personnel to execute the scope of activities under each target category. The Board added that it would conduct facility visits to verify all capacities and capabilities claimed in multiple applications.
The document further stated that certificates are not issued in anticipation of future investments or planned capacity. According to the guidance notes, NCECs are approved based on functional equipment or assets with dedicated resources and utilities in place to perform the services. Applicants are therefore required to demonstrate operability and availability of owned assets during facility visits by NCDMB teams.
Requests for upgrades or additions to services on approved but unexpired certificates, based on additional investments, will be treated as fresh applications and subjected to full verification of all submitted equipment, assets and documentation. The Board noted that applicants are expected to be deliberate and transparent in providing complete and relevant information to enable timely review of such requests.
The guidance notes also listed services that do not require Nigerian Content Equipment Certificates, including GSM service providers, commercial airlines, educational institutions, legal advisory services, public relations and events management firms, government agencies and corporate social responsibility projects involving community vendors.
Commenting on the new guidance, the Executive Secretary of NCDMB, Engr. Felix Omatsola Ogbe urged oil and gas stakeholders to study the document carefully when applying for certification. He warned that submission of forged, altered or falsified documents constitutes a criminal offence and will attract legal consequences as well as the Board’s administrative punishments.
He also disclosed that the Board has set target timelines for the review and processing of NCEC applications, adding that the application portal provides timestamps for all activities and interactions, from submission through review, to improve transparency and accountability in the process.
NCDMB said the new guidance notes are expected to strengthen local content implementation, reduce contracting delays and ensure that participation in Nigeria’s oil and gas industry is driven by companies with verifiable technical capacity rather than paper credentials.
