Operators in the upstream arm of the oil and gas sector have been mandated by the Federal Government to obtain compliance certificates to prove their one per cent remittances to the Nigerian Content Development Fund.
The Nigerian Content Development and Monitoring Board, an agency of the Federal Government, introduced the Nigeria Content Compliance Certificate System to ensure adherence to Nigerian Content requirements for remittances to the NCDF.
The initiative was unveiled Tuesday at a 2-Day sensitisation workshop in Lagos, aimed at enhancing transparency and boosting local participation in the oil and gas sector.
Section 104 of the Nigerian Oil & Gas Industry Content Development Act 2010 established the Nigerian Content Development Fund to fund the implementation of Nigerian content development in the Nigerian oil and gas industry.
One percent of every contract awarded to any operator, contractor, subcontractor, alliance partner, or any other entity involved in any project, operation, activity, or transaction in the upstream sector of the Nigeria oil and gas industry shall be deducted at source and paid into the NCDF managed by the NCDMB for projects, programmes, and activities directed at increasing Nigerian content in the oil and gas industry.
In his opening remarks, NCDMB Executive Secretary, Felix Ogbe, stated that the compliance certificate was highlighted as a pivotal tool. Ogbe said the certificate was developed to ensure that Nigerian content requirements are met in all oil and gas projects.
With the introduction of the compliance certificate, Ogbe emphasised that companies now have an objective standard to demonstrate conformity, while the board is better positioned to ensure regulatory oversight.
For the system to be effective, he stressed that stakeholders must be adequately informed, saying the sensitisation programme provided an opportunity for hands-on engagement and clarification.
“This programme is more than a workshop. It is a reaffirmation of our commitment to deepen Nigerian Content in the oil and gas industry and improve transparency, accountability, and access to funding mechanisms that support indigenous participation.
“The Compliance Certificate System was developed to ensure that Nigerian Content requirements are met in all oil and gas projects. With the introduction of the Compliance Certificate, companies now have a clear objective standard to demonstrate conformity, while the board is better positioned to ensure effective regulatory oversight.
“We understand that for this system to be effective, stakeholders must be adequately informed. This programme, therefore, provides an opportunity for hands-on engagement and clarification,” he stated.
Ogbe also unveiled the upgraded NCDF payment portal, tagging it a major step forward in the drive for efficiency. According to him, the enhancements made to the platform were aimed at improving user experience, simplifying remittance processes, and ensuring real-time compliance tracking.
“With the expected increase in inflow to the fund following the implementation of compliance certification, this upgrade could not have come at a better time,” he added.
At the forum, the board also sensitised oil companies and contractors to the revised Community Contractors Finance Scheme, which it called “a bold reimagination of our support for host community contractors.”
It was disclosed that the First City Monument Bank is managing the fund, which offers a N50m loan to firms to execute projects in host communities. The loan comes with an eight per cent interest per annum.
“Through our collaboration with FCMB and other financial institutions, we have redesigned the product to remove access barriers and increase participation by genuine community contractors. This initiative is directly aligned with our strategic objective of enabling shared prosperity and inclusive growth in the Nigerian oil and gas ecosystem,” Ogbe said.
Speaking about the Nigerian Content Intervention Fund, the NCDMB noted that the combined $400m NCI Fund, managed by the Bank of Industry and the Nigerian Export-Import Bank, has been instrumental in developing local capacity in the industry.
“As of today, about 130 companies have accessed and benefited from this Fund across the various product lines. Work is, however, ongoing to ensure more indigenous companies in the industry have access to the fund,” Ogbe added.
