Remittance of 1% Nigerian content levy still mandatory — NCDMB
Nigerian Content Development and Monitoring Board Reminds Oil and Gas Sector of Levy Obligation
By Udeme Akpan
The Nigerian Content Development and Monitoring Board (NCDMB) has reiterated its requirement for operators, contractors, and service companies in the country’s upstream oil and gas sector to remit a one percent levy to the Nigerian Content Development Fund (NCDF). This levy must be deposited into bank accounts designated by the Board.
In a recent statement, NCDMB Executive Secretary Felix Omatsola Ogbe underscored that entities involved in upstream contracts must remit one percent of the contract value. He emphasized that the NCDMB holds exclusive authority over the management and administration of the Fund.
Ogbe highlighted that the NCDF is utilized to support indigenous oil and gas contractors, finance capacity development and training, facilitate access to affordable financing, and promote sustainable growth within the oil and gas value chain.
He clarified that the NCDF is established by legislation from the National Assembly and is not categorized as federal revenue that contributes to the Consolidated Revenue Fund. The collection and administration of the NCDF are specifically governed by Section 104 of the relevant Act.
Ogbe cautioned that all levy remittances must be made strictly to accounts designated by the NCDMB. Payments made to other accounts will not be recognized as valid under the law. He urged companies to ensure compliance and to consult the Board for clarification before making any remittances.
In addition, the NCDMB announced that obtaining the Nigerian Content Development Fund Compliance Certificate (NCFCC) is now essential for accessing the Board’s regulatory services and approvals. This certificate serves as evidence that a company has met its obligation to remit the one percent levy.
Without a valid NCFCC, companies will not be granted access to regulatory documents, certifications, approvals, or clearances issued by the NCDMB.
The Board remains committed to maintaining transparency, accountability, and effective utilization of the Fund to promote sustainable Nigerian content development.
