Oil industry contracting: NCDMB issues NCEC guidance notes, rules out transfer of certificate
NCDMB Releases Guidance Notes to Streamline Oil and Gas Contracting
By Udeme Akpan
The Nigerian Content Development and Monitoring Board (NCDMB) has unveiled the “NCEC Application Guidance Notes” aimed at enhancing contracting processes in the oil and gas sector. Effective December 2025, this initiative seeks to eliminate unqualified firms from the bidding process and reduce production costs in Nigeria’s oil industry.
The guidance notes, available on the NCDMB’s website and the NCEC application portal, align with Presidential Directives on local content requirements. These directives mandate the NCDMB to take decisive steps in curbing the involvement of intermediaries lacking the technical capacity to participate in oil and gas contracts.
Central to these efforts is the requirement for firms to hold Nigerian Content Equipment Certificates (NCECs) issued by the NCDMB. The document states that improper handling of NCECs during bidding can lead to delays and the introduction of unqualified intermediaries into the contracting system.
The NCDMB aims to address issues such as fraudulent applications, underreported personnel, and false documentation while facilitating faster reviews and approvals for qualified service providers. The eight categories under the NCEC include Manufacturing & Related Services, Fabrication & Construction, Construction & Moveable Equipment, Services & Support, Quality Control Inspection and Testing, Non-Moveable Assets, Procurement & Supplies, and Consultancy Services.
Companies seeking NCECs are encouraged to provide detailed descriptions of their services accompanied by supporting evidence through the application portal. The NCDMB emphasized that it does not require any fees for application processing or certification.
In accordance with presidential mandates, the NCDMB prohibits third-party involvement in the NCEC application process. Firms registered on the Nigerian Oil and Gas Industry Content Joint Qualification System (NOGIC-JQS) are accountable for all documentation submitted under their credentials.
The guidance clarifies that subsidiaries or local partners cannot submit separate NCEC applications using the same resources, and NCECs are not transferable between companies. Firms are urged to apply for NCECs aligned with their core services, as non-genuine applications can impede the review of legitimate applications. Violations of the NCEC protocols may result in sanctions.
Companies applying for multiple NCECs must demonstrate the necessary resources and capabilities to fulfill their obligations. The NCDMB plans to conduct facility inspections to verify claims made in these applications.
Furthermore, NCECs will not be awarded based on anticipated capabilities but rather on existing operational equipment and resources.
Requests for upgrades to existing NCECs will be treated as new applications, with thorough verification required.
The document identifies certain services that do not require NCECs, including telecommunications, commercial airlines, educational institutions, legal services, public relations, government agencies, and community-related projects.
NCDMB Executive Secretary Engr. Felix Omatsola Ogbe urged industry stakeholders to familiarize themselves with the guidance notes. He cautioned that submitting forged documents could lead to legal repercussions and administrative penalties from the NCDMB.
The Board has established target timelines for reviewing NCEC applications and ensures that the portal tracks all interactions related to submissions.
For more information, visit ncdmb.gov.ng.
