Upstream Oil & Gas Firms Must Pay 1% Levy, Obtain Compliance Certificate – NCDMB
- NCDMB has reiterated that payment of the one per cent NCDF levy is mandatory for oil and gas contracts
- The levy is established under Section 104 of the Nigerian Oil and Gas Industry Content Development Act, 2010
- The NCDF compliance certificate is now required to access NCDMB regulatory services and approvals
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
The Nigerian Content Development and Monitoring Board (NCDMB) has reminded companies operating in Nigeria’s upstream oil and gas sector that payment of the one per cent Nigerian Content Development Fund (NCDF) levy remains compulsory under the law.
Source: Getty Images
In a statement issued on Tuesday and shared with Legit.ng, the Board said all operators, contractors and service providers are required to remit one per cent of the value of every upstream contract into bank accounts officially designated by the agency.
The Executive Secretary of NCDMB, Felix Omatsola Ogbe, explained that the NCDF was established under Section 104 of the Nigerian Oil and Gas Industry Content Development Act (NOGICD Act), 2010.
Fund created to drive industry development
He noted that the fund was created as a dedicated vehicle to drive the development of Nigerian content in the oil and gas industry.
According to him, entities covered by the Act are legally bound to remit one per cent of every upstream contract value, adding that the Board has exclusive responsibility for managing and administering the fund.
Ogbe clarified that the NCDF is a ring-fenced statutory development fund and not classified as federal government revenue payable into the Consolidated Revenue Fund. He stressed that its collection and administration are expressly guided by Section 104 of the Act.
NCDMB states account for payment
The Executive Secretary further warned that remittances must be made strictly into accounts formally designated by the Board. He stated that any payment made outside those accounts would not be recognised as a valid settlement of the one per cent levy.
He urged stakeholders to ensure full compliance and to seek clarification from the Board before making payments where necessary. Ogbe also assured industry players of the Board’s commitment to transparency, accountability and effective utilisation of the fund to promote sustainable growth across the oil and gas value chain.
The Board also announced that obtaining the Nigerian Content Development Fund Compliance Certificate (NCFCC) has become mandatory for companies seeking to access its regulatory services and approvals.
According to NCDMB, the certificate confirms that a company has fulfilled its statutory obligation to remit one per cent of the value of every upstream contract.
Source: Getty Images
No payment, no access to approvals
Without a valid compliance certificate, companies will not be granted access to regulatory documents, certifications, approvals and clearances issued by the Board.
These include the Nigerian Content Equipment Certificate (NCEC), project and contract approvals, as well as other regulatory documents.
The agency advised industry stakeholders to regularise their NCDF remittance status and apply promptly for the compliance certificate to avoid disruptions to operational activities.
It added that the application process for the certificate is fully digital and available through the Board’s online portal. Eligible companies are required to submit contract and remittance details, upload evidence of payments, complete verification and undergo compliance review before the certificate is issued.
Nigeria earns N55.5tn from crude oil sales in 2025
Legit.ng reported that Nigeria generated an estimated N55.5 trillion from crude oil sales in 2025, up from N50.88 trillion in 2024.
The estimate was based on official production data from NUPRC and crude price figures from the CBN.
Analysts noted that the figure does not reflect actual government earnings due to costs and other deductions
Source: Legit.ng
