The Nigerian Content Development and Monitoring Board (NCDMB) has announced that compliance with the mandatory 1% levy on the Nigerian Content Development Fund is essential for operators, contractors, and service companies in Nigeria's oil and gas industry. During a recent statement, Executive Secretary Felix Ogbe emphasized that access to the NCDMB's regulatory services, including approvals and certifications, will now be contingent on possessing a valid Nigerian Content Development Fund Compliance Certificate.

This requirement is grounded in the Nigerian Oil and Gas Industry Content Development Act of 2010, which aims to foster indigenous participation in the sector. Ogbe pointed out that the fund, established under Section 104 of the Act, is crucial for promoting local content and ensuring that Nigerian entities play a significant role in the oil and gas industry. He reiterated the importance of adhering to the legal requirements by specifying that the levy must be remitted to accounts officially designated by the Board.

By reinforcing this policy, the NCDMB seeks to enhance local capacity and support Nigerian stakeholders in the oil and gas market. This development is likely to have implications for foreign investors and international companies operating in Nigeria, as their compliance with the local content laws will dictate their ability to conduct business effectively in the region. The Board's strict enforcement highlights the government's commitment to bolstering home-grown companies and reducing the reliance on foreign firms in the oil sector.