The operators in the upstream arm of the oil and gas sector have been mandated by the Nigerian 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 (NCDMB), 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 on Tuesday at a 2-Day sensitisation workshop in Lagos, aimed at enhancing transparency and boosting local participation in the oil and gas sector.
According to local media reports on Wednesday, 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.
Therefore, one per cent 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.
Speaking at the event, the NCDMB Executive Secretary, Felix Ogbe, said that the compliance certificate was highlighted as a pivotal tool.
Ogbe said that the certificate was developed to ensure that Nigerian content requirements are met in all oil and gas projects.
According to him, with the introduction of the compliance certificate companies now have an objective standard to demonstrate conformity, while the board is better positioned to ensure regulatory oversight.
He stressed that stakeholders must be adequately informed and that 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 added.
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 are 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.
GIK/APA