“NCDMB Reinforces 1% Nigerian Content Levy as Mandatory; Compliance Certificate Now Key for Industry Approvals”

The Nigerian Content Development and Monitoring Board (NCDMB) has issued a firm reminder to operators, contractors, and service companies in Nigeria’s upstream oil and gas sector that the one percent (1%) Nigerian Content Development Fund (NCDF) levy remains compulsory. Access to approvals, certifications, and regulatory services is now contingent on holding the NCDF Compliance Certificate (NCFCC).

Speaking from the Nigerian Content Tower in Yenagoa, Engr. Felix Omatsola Ogbe, Executive Secretary of NCDMB, stressed that the NCDF was established under Section 104 of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, 2010, as a dedicated fund to grow indigenous capacity in the oil and gas sector. “All entities covered by the Act are legally bound to remit one percent (1%) of the value of every upstream contract directly into the bank accounts officially designated by the Board,” Ogbe emphasized.

Dr. Obinna Ezeobi, General Manager of NCDMB’s Corporate Communications Division, explained that the fund supports indigenous contractors, finances industry training, enables access to affordable financing, and drives sustainable growth across the oil and gas value chain. He said, “The NCDF is a ring-fenced statutory development fund, not part of the Federal Government’s Consolidated Revenue Fund, and its administration is strictly governed by the NOGICD Act.”

Ogbe warned that remittances made outside the designated accounts would not be recognized as valid payments under the law, urging companies to ensure strict compliance and seek clarification from NCDMB where necessary.

In a move to enforce adherence, the NCDMB has made the NCDF Compliance Certificate (NCFCC) mandatory for accessing its services. Companies must hold a valid certificate confirming full remittance of the one percent levy before they can receive:
Nigerian Content Equipment Certificate (NCEC)
Approvals and clearances for projects and contracts
Other regulatory documents issued by the Board

The Board advised oil and gas stakeholders to regularize their remittance status and apply promptly for the certificate to prevent operational disruptions. The entire process is fully digital via the NCDMB online portal, where companies can submit contracts, upload payment evidence, complete verification, and obtain the certificate.

According to NCDMB, the Compliance Certificate not only validates a company’s standing with the Board but also promotes transparency, accountability, and sustainable development of Nigerian content across the oil and gas industry.

NCDMB’s renewed stance signals that the Board is prioritizing integrity, compliance, and sustainability, ensuring that Nigerian content thrives in the world’s competitive oil and gas landscape.

NCDMB reiterates mandatory 1% Nigerian Content Development Fund levy for upstream oil and gas operators. Compliance Certificate now required for approvals, contracts, and regulatory services.

The Nigerian Content Development and Monitoring Board enforces 1% NCDF levy compliance, linking the NCDF Compliance Certificate to access regulatory approvals, promoting transparency and sustainable growth in Nigeria’s oil and gas sector.