The Federal Government now requires upstream oil and gas operators to secure compliance certificates verifying their one per cent contributions to the Nigerian Content Development Fund.

This follows the introduction of the Nigerian Content Compliance Certificate System by the Nigerian Content Development and Monitoring Board, designed to enforce remittance compliance with Nigerian Content regulations.

The system was officially launched on Tuesday at a two-day sensitisation workshop in Lagos, aimed at increasing transparency and strengthening local participation in the oil and gas sector.

Section 104 of the Nigerian Oil and Gas Industry Content Development Act, 2010, established the Nigerian Content Development Fund to support the implementation of Nigerian content initiatives within the country’s oil and gas sector.

As mandated by the Nigerian Oil and Gas Industry Content Development Act, one per cent of the value of every contract awarded in the upstream sector—whether to operators, contractors, subcontractors, alliance partners, or other entities—must be deducted at source and paid into the Nigerian Content Development Fund. The fund, administered by the Nigerian Content Development and Monitoring Board (NCDMB), supports initiatives aimed at increasing Nigerian participation in the oil and gas industry.

In his opening remarks, NCDMB Executive Secretary Felix Ogbe described the compliance certificate as a vital enforcement tool. He explained that it was developed to ensure that all oil and gas projects fully comply with Nigerian content requirements.

With the introduction of the compliance certificate, Felix Ogbe emphasized that companies now have a clear and objective standard to demonstrate their adherence to Nigerian content requirements, while the NCDMB is better equipped to provide effective regulatory oversight.

He emphasised that for the system to be effective, stakeholders must be well-informed, noting that the sensitisation programme offered a valuable opportunity for direct engagement and clarification.

“The Compliance Certificate System was developed to ensure that Nigerian Content requirements are met in all oil and gas projects. With the introduction of the Compliance Certificate, companies now have a clear objective standard to demonstrate conformity, while the board is better positioned to ensure effective regulatory oversight.

“We understand that for this system to be effective, stakeholders must be adequately informed. This programme, therefore, provides an opportunity for hands-on engagement and clarification,” he stated.

Ogbe also unveiled the upgraded NCDF payment portal, describing it as a significant milestone in the pursuit of greater efficiency. He noted that the platform’s enhancements were designed to improve user experience, streamline remittance processes, and enable real-time compliance tracking.

“With the expected increase in inflow to the fund following the implementation of compliance certification, this upgrade could not have come at a better time,” he added.

At the forum, the board also sensitised oil companies and contractors to the revised Community Contractors Finance Scheme, which it called “a bold reimagination of our support for host community contractors.”