The Nigerian Content Development and Monitoring Board has warned oil and gas companies that fail to pay their statutory contributions to the Nigerian Content Development Fund, saying it is prepared to enforce sanctions against defaulting firms.
Speaking at the 25th Nigeria Oil and Gas Energy Week Conference and Exhibition in Abuja, the Executive Secretary of the NCDMB, Felix Ogbe, said prompt payment into the fund is essential for financing initiatives that strengthen local capacity in Nigeria’s oil and gas industry.
He stressed that companies operating under the Nigerian content framework must comply with their obligations, noting that the board would intensify enforcement measures against firms that delay or refuse to remit the required levies.
Ogbe also said a valid Nigerian Content Development Fund compliance certificate is becoming increasingly important for companies seeking to participate in industry projects and regulatory engagements.
According to him, businesses that benefit from opportunities created by the local content policy must also contribute to sustaining its growth, adding that compliance supports job creation, industrial development and the broader Nigerian economy.
The NCDMB boss said Nigeria has made significant progress in local content since the enactment of the Nigerian Oil and Gas Industry Content Development Act in 2010, with local participation in the sector rising from below five per cent to about 61 per cent.
He explained that the next stage of development should focus on expanding local manufacturing, strengthening indigenous companies and improving their competitiveness in international markets.
Ogbe also announced that the board will begin a joint industry capacity audit in the third quarter of the year. The exercise, developed in partnership with regulators and industry stakeholders, is expected to assess the capabilities of manufacturers and service providers operating in Nigeria’s oil and gas sector.
He said the audit would provide reliable data on available in-country capacity, shorten contracting timelines, encourage direct patronage of qualified service providers and guide investment, financing and policy decisions.
As part of efforts to support indigenous businesses, Ogbe said the industry has adopted a five-tier classification system that recognises both established companies and emerging players. He noted that smaller firms would benefit from targeted vendor development programmes designed to help them grow into manufacturers and original equipment producers.
The NCDMB also disclosed that about 20,000 Nigerians have registered for its Field Readiness Training Programme, which is aimed at equipping workers with the skills needed for expected investments across the oil and gas industry.
Ogbe added that the board has introduced a Nigerian Content Trainers Registration Certificate, developed in collaboration with the Oil and Gas Trainers Association of Nigeria, to improve the quality and standardisation of industry training.
He maintained that sustained growth in local content depends on increased investment and faster approval of oil and gas projects, urging stakeholders to accelerate final investment decisions to unlock more opportunities and increase the sector’s contribution to Nigeria’s economy.
