The Federal Government is now requiring oil and gas companies operating in the upstream sector to obtain certificates showing they’ve paid the mandatory one percent contribution to the Nigerian Content Development Fund (NCDF).
This new rule was announced by the Nigerian Content Development and Monitoring Board (NCDMB) during a two-day awareness workshop held in Lagos. The agency also introduced the Nigerian Content Compliance Certificate System, which is designed to track and confirm that companies are following local content regulations as outlined in the 2010 Nigerian Oil and Gas Industry Content Development Act.
According to the law, every upstream oil and gas contract must set aside one percent of its value to be paid into the NCDF. The money is used to support efforts aimed at boosting Nigerian participation in the industry.
Speaking at the event, the Executive Secretary of the NCDMB, Felix Ogbe, explained that the new certificate system will help ensure greater compliance and give companies a clear way to prove they are meeting their obligations. He said the board now has a stronger framework to monitor and enforce the rules.
Ogbe also announced improvements to the NCDF payment portal, which now offers a smoother and faster way for companies to make payments and track their compliance in real-time.
During the workshop, the board also informed participants about updates to the Community Contractors Finance Scheme. This initiative now provides up to ₦50 million in loans at 8% annual interest for qualified contractors working in host communities, with the funds being managed by First City Monument Bank (FCMB).
He noted that the goal is to make it easier for local businesses to access funding and take on bigger roles in oil and gas projects. Ogbe also pointed out that about 130 companies have already benefited from another support fund — the $400 million Nigerian Content Intervention Fund — which is managed by the Bank of Industry and NEXIM Bank.
Efforts are ongoing to expand access so that even more local firms can take advantage of these funding opportunities and grow their presence in the sector.
