NCDMB Enforces Mandatory 1% Levy and Compliance Certificate for Upstream Oil and Gas Sector
The Nigerian Content Development and Monitoring Board (NCDMB) has issued a firm reminder to companies operating in Nigeria's upstream oil and gas industry, stating that payment of the one per cent Nigerian Content Development Fund (NCDF) levy is a compulsory legal requirement. This directive, based on Section 104 of the Nigerian Oil and Gas Industry Content Development Act of 2010, applies to all operators, contractors, and service providers involved in upstream contracts.
Legal Basis and Payment Requirements
In a statement released on Tuesday, the Board emphasized that entities covered by the Act must remit one per cent of the value of every upstream contract into officially designated bank accounts. NCDMB Executive Secretary Felix Omatsola Ogbe clarified that the NCDF is a dedicated statutory development fund established to drive Nigerian content growth in the oil and gas sector, and it is not classified as federal government revenue payable into the Consolidated Revenue Fund.
Ogbe warned that payments must be made strictly into accounts formally designated by the Board, with any remittances outside these accounts not recognized as valid settlements. He urged stakeholders to ensure full compliance and seek clarification from the Board when necessary, while assuring transparency and accountability in fund management to promote sustainable industry growth.
Compliance Certificate Now Mandatory for Regulatory Access
The Board also announced that obtaining the Nigerian Content Development Fund Compliance Certificate (NCFCC) has become mandatory for companies seeking to access its regulatory services and approvals. This certificate confirms that a company has fulfilled its statutory obligation to remit the one per cent levy.
Without a valid compliance certificate, companies will be denied access to regulatory documents, certifications, approvals, and clearances issued by the Board, including the Nigerian Content Equipment Certificate (NCEC), project and contract approvals, and other essential regulatory documents. The agency advised stakeholders to regularize their NCDF remittance status and apply promptly for the certificate to avoid operational disruptions.
Digital Application Process and Industry Context
The application process for the compliance certificate is fully digital and available through the Board's online portal. Eligible companies are required to submit contract and remittance details, upload evidence of payments, complete verification, and undergo a compliance review before the certificate is issued.
This enforcement comes amid Nigeria's significant earnings from crude oil sales, which reached an estimated N55.5 trillion in 2025, up from N50.88 trillion in 2024, according to official data. However, analysts note that these figures do not reflect actual government earnings due to costs and deductions, highlighting the importance of efficient fund management and compliance in the sector.
