The Nigerian Content Development and Monitoring Board (NCDMB) has issued a reminder to all operators, contractors, and service companies involved in the upstream sector of the Nigerian oil and gas industry regarding the mandatory remittance of a 1% levy into the Nigerian Content Development Fund (NCDF). This announcement was made during a statement made in Yenagoa, Bayelsa State, where the Executive Secretary, Felix Omatsola Ogbe, emphasized the importance of this obligation under the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010. He underscored that this fund is crucial for fostering local development in the industry.

In his remarks, Ogbe clarified that the levies from the NCDF are to be calculated as 1% of every upstream contract's value. This is directly connected to the Board's exclusive authority to manage and administer the NCDF, reinforcing the responsibilities of all stakeholders involved in the oil and gas sector. He pointed out that the funds collected are vital for supporting indigenous firms and promoting local content initiatives which can enhance the capacity and competitiveness of Nigerian companies in the oil and gas market.

The enforcement of this regulation is particularly relevant given the ongoing discussions about local content development in Nigeria's oil and gas industry, as the NCDMB aims to ensure that a larger share of the industry benefits local businesses. By reinforcing this requirement, the NCDMB is making a clear statement about the importance of local involvement and investment in the sector, which is expected to have implications for future contractual relationships and opportunities for local firms seeking to engage in upstream oil and gas activities.